Energy and Infrastructure in Indonesia

1. Energy Sources

• Fossil Fuels: Indonesia is rich in fossil fuels, primarily coal, oil, and natural gas. Coal is the dominant source for electricity generation.
• Renewable Energy: The government aims to increase the share of renewables, including:
  • Hydropower: Significant potential, with several large-scale projects.
  • Geothermal: Indonesia has the largest geothermal reserves in the world.
  • Solar and Wind: Emerging sectors with various projects in development.
• Bioenergy: Utilization of palm oil and other biomass sources is growing.

2. Infrastructure Development

• Transportation:

  • Roads: Extensive network, but quality varies. Major highways connect key cities.
  • Rail: Limited but expanding, with projects like the Jakarta-Bandung high-speed rail.
  • Airports: Major international airports in Jakarta (Soekarno-Hatta) and Bali (Ngurah Rai).
  • Ports: Key for trade; major ports include Tanjung Priok (Jakarta) and Tanjung Perak (Surabaya).

• Utilities:

  • Electricity: PLN (Perusahaan Listrik Negara) is the state-owned electricity company.
  • Water Supply: Varies by region; urban areas have better access than rural.

3. National Regulations

• Energy Policy: The National Energy Policy (KEN) aims for energy diversification and sustainability.
• Investment Regulations: The Investment Coordinating Board (BKPM) oversees foreign investments in energy and infrastructure.
• Environmental Regulations: Projects must comply with the Environmental Impact Assessment (AMDAL) process.

4. General Costs

• Electricity: Pricing varies by region and consumption level. Average rates are around IDR 1,500 to IDR 2,500 per kWh.
• Water Supply: Costs depend on the local government; average rates range from IDR 1,500 to IDR 5,000 per cubic meter.
• Transportation: Public transport fares vary; for example, bus fares in Jakarta are around IDR 3,500 to IDR 10,000.

5. Standard Procedures

• Electricity Connection:

  • Apply through PLN’s website or local office.
  • Required documents: ID, proof of property ownership, and installation plan.
  • Connection fees vary based on capacity.

• Water Supply Connection:

  • Apply through local water utility company.
  • Required documents: ID, proof of property ownership, and application form.
  • Fees depend on the region and service level.

• Transportation Licensing:

  • For commercial transport, obtain a license from the Ministry of Transportation.
  • Required documents include vehicle registration, insurance, and safety compliance.

6. Country-Specific Considerations

• Cultural Sensitivity: Understanding local customs and practices is crucial, especially in rural areas.
• Corruption: Be aware of potential bureaucratic challenges and corruption in obtaining permits.
• Infrastructure Gaps: While urban areas are well-developed, rural regions may lack basic services.
• Natural Disasters: Indonesia is prone to earthquakes and volcanic activity; infrastructure resilience is a key consideration.

Conclusion

Navigating Indonesia's energy and infrastructure landscape requires understanding the diverse energy sources, regulatory environment, and practical procedures for accessing services. Visitors and immigrants should be prepared for regional variations and cultural nuances that may affect their experiences.