Indonesia Energy Market – Indonesia is one of the emerging market for energy industry. This sentence resonates not only within the energy market in regional South East Asia or even Asia – but also the worldwide. Indonesia is set to join China and the US to be the primary energy market.
There are several factors that makes the energy market in Indonesia became more and more enticing. The main thing to be observe of course, is the strong natural resources reserve in Indonesia. The natural resource alone is diversified and more than adequate in numbers.
The Indonesia Energy Market also have an actual market – what we meant by this is both the domestic market of Indonesia, its people and companies are a potential market for our energy products. This is also combined with the fact that Indonesian archipelago is crucial for trade.
Furthermore, Indonesia could be the energy station for the whole ASEAN region, and even could expand its influence to Southern parts of the great China economy. In the case of Indonesia, one thing is for sure: size does matter here. As the biggest country in ASEAN, it’s also the most in the terms of natural resource reserve.
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The Potential (of Energy Industry) in Indonesia
The first thing in Indonesia Energy Market to be observed is through the lens of production. We the entrepreneurs, the business side of things. Is there any resource in adequate numbers that we could use to fuel an industrial complex in Indonesia? The answer is yes.
Throughout the archipelago, there are many mining sites, wind potential and the newly emerging geothermal resource. Thus, the country has a diverse natural potential to fuel it’s own energy industrial complex. There are an abundance of resource in Indonesia.
The one thing that hasn’t been successfully built in the Indonesia Energy Market is the advanced processing of the energy. For example, there is a lack of refinery even though there is a lot of oil and petroleum resource in Indonesia. Grids, power plants, and other supporting infrastructure is also currently not serviceable in terms of numbers.
This is because the past government policies that often prioritize the central island of Java and Bali. Though the current administrations are tying to develop wider area of construction, it also has limited power in terms of resource. This is why the PPP scheme is popular here.
The PPP Scheme is a working or joint-operations agreement between the government, who ceases some limitations or regulations and the private sector partner who would built and execute the plan in order to make things into reality. This is popular in Indonesia Energy Market.
The reason that it is popular is because the sheer distance and area coverage to be built upon in Indonesia. It is a huge country with islands, mountains and jungles in between. Thus the government alone can’t be the one who responsible in the infrastructure building.
The Indonesia Energy Market often uses the PPP scheme mainly in the exploration and the processing of raw materials into the actual fuel. This is why Petronas, BP, Exxon, and Shell often be the face of the deals with Indonesian petrol companies.
With the resurgence of the national consciousness to construct a strong domestic industry in order to conserve the energy, The Indonesian government and companies are now prefer to look for a partner who would assist them in building their capacity rather than a loose association that sell raw material to foreign parties.
Furthermore, in order to build a strong domestic industry, Indonesia Energy Market has now introduced a limitation towards export – but a loosen stance on the domestic focused partnership and capacity building programs.
For example, there are several forestry laws that has been relaxed to promote further exploration and resource discovery. There is also a recent agrarian law that promotes the legal clarity of land ownership. These are instruments to minimize legal discord and promote business activity.
Also Read: How to Invest in Energy Sector in Indonesia
The Market Who Would Buy
Indonesia Energy Market is filled with potential customers and vendors that would open to our services and goods. Let’s start with the biggest one: the public sector. The government and the people are tied together in the constitution where energy is a public goods and thus have to be fairly distributed and controlled by the public through the government.
The government itself has repeatedly introduce bills and regulations or mandates to open markets for the previously niched elements of energy industry. This includes the 2012 & 2014 mandate for the state owned electricity enterprise to allocate its budget to purchase geothermal energy.
Next, the public – or more specifically the population and the middle class who expect to earn US$ 1000 – US$ 1500 per-capita is growing in numbers. The average household spend US$100 per month to afford electricity bills. This guarantees actual buyers in Indonesia Energy Market.
Another side to be prospect on is the regional companies and the transportation industry. Indonesia sits in the middle of the water highways and important sea lanes among the market of Indian Ocean side to the western pacific side of the Americas that connected to Europe.
The Indonesia Energy Market is strongly positioned as the refueling center for the shipments and logistical sea lanes of the world market. It is among the last pier to be attended before the wide ocean of Pacific. This meant that often times, ships would refuel in Indonesia before long journey ahead, making it a crucial last post and a must-visit place.
The Importance of Local Partner
The energy market in Indonesia is tied strongly with the regional and international political economy. This meant that there is a huge advantage should you score an important local partner who would help you navigate what should and shouldn’t be done in the economy.
One of those potential partner is the people and experts in Proconsultofficial.com. The consultants and the professionals who work there are experts in every term of Indonesia Energy Market. They know what to do and what not to do, including direct updates that influence strategic decisions.
And so, that’s the overview of Indonesia Energy Market. We were basing off our description on the works and research of Proconsultofficial.com. These are the most recommended business intelligence partner that you can trust to advance your business in Indonesia.
Consulting Business? Contact Whatsapp +62 877-7180-0222