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Germany, NZ, Invest in Indonesia’s Renewable Energy

October 22, 2010

Indonesia is current attracting a spate of interest in it’s vast geothermal and hydropower potential, now that conducive incentives are in place, and Indonesia’s economy and politics have stabilised.

Following similar announcements by China and the UAE, it is reported that both Germany and NZ now intend to invest in Indonesia’s alternative energy potential.

Indonesia is ASEAN’s largest economy, growing at 6-7% per annum largely driven by domestic consumption.  The election of the President for a second 5-year term has inspired further confidence in the democratic institutions, and in the regulatory reform which continues to be implemented.  With economic growth driving electricity consumption, and low electrification rates, significant investment into power generation is a national priority.

The second major near-term power implementation phase allows for 10,000 MW of projects to be implemented, 40% of which will be achieved by Independent Power Producers.

PLN, the State-owned power utility, will have a capital expenditure of over $6.5bn in 2011.

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