Energy and Environment

Still today, Indonesia relies heavily on fossil-based energy sources for transportation fuel and electricity, but it is a high potential country for the development of renewable energy and environment

Due to rising demand, there is a growing need for a clean water supply, waste water solutions and waste management. The National Medium‐Term Plan (RPJMN) for 2015-2019 Book II Chapter X emphasizes energy security emphasized as a strategic issue. It’s well known that Indonesia has great natural potential and a lot of energy resources including oil, gas and coal.  It is also home to tremendous biodiversity of animals and plants. In fact, Indonesia was formerly a member of the Organization of Petroleum Exporting Countries (OPEC).

It is not currently a member  because high oil consumption led it to become a net oil importer. At the same time, in 2011, Indonesia was the world’s largest exporter of coal by weight, and the eighth largest exporter of natural gas. Increasingly, the government seeks to reorient domestic production away from exports to meet domestic demand.  It struggles to attract sufficient investment to meet growing domestic energy and environmental consumption and to keep the price of energy low. Indonesia’s total energy consumption grew by over 50 percent between 2001 and 2010. In 2012, electricity consumption in Indonesia was 126.1 billion kWh. This is why the government is supporting new power plant construction based on coal, oil and gas.

The government also struggles with environment protection, which is now an issue due to population growth, rising industrial activity, mining, and increasing agricultural area. Even though Indonesia has many natural resources and agriculture land, in many cases it is still dependent upon imports. This is one of the main concerns of government. However lobbing, corruption and local interest are put above national interest.


Agriculture

In past five decades, arable land increased from 21% in 1960s to 30% today. Indonesia’s main products are palm oil, rice, cereals and fruits. Even though it has a large agriculture area, Indonesia is not self sustaining and needs to import rice.

 

Mining

Indonesia is in rich of coal, metal ores, nickel, copper and minerals. The strategic resource is coal, which is important for export but increasingly for the country’s own energy production. In 2014, 20 new coal power plants were under construction in Indonesia.

 

Oil and Gas

Indonesia has a great potential as a source of crude oil and natural gas. With its high level of gasoline consumption, Indonesia holds a huge market share in oil and gas.

 

Renewable Energy

Based on plentiful sources, Indonesia has great potential for developing renewable energy. For example, its 17,000 islands have many idle areas where onshore wind power plants can be built.

 

Waste Management

Indonesian cities are facing serious problems managing municipal solid waste (MSW). Like many cities in developing countries, the volume of MSW is rising significantly. Indonesia still needs a good solution for waste management.

 

Water Treatment

Indonesia still lacks a sufficient clean water supply. According to UNICEF, only 50 to 75 percent of the people have improved water sanitation. The bottled water industry is playing a significant role in providing a water supply.

 

 

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