Indonesia Energy Resources – Indonesia is an emerging market and a huge investment potential. The increasing population and more open government towards investment and construction has created a good climate for business in general. One sector that continuously grow is the energy sector.
Energy sector needs resources, especially natural resources – both conventional and renewables. This is because to generate certain energy such as electricity, we need to make sure that there is the material to work with, something to be converted to. In this article that’s what we will talk about.
We will try to casually hover on what’s the Indonesia Energy Resources are. What are the top materials that would be the main building blocks of the Indonesian energy industrial sector. The further we know, the more we could maneuver our investment better and understand what should we do in the next move.
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Coal Miner’s Land
The main way that Indonesia generates it’s energy is through the conventional burning of fossil fuels. This isn’t mean that Indonesia has yet to grow or innovate, but the easiest to use both in the terms of how many are accessible to Indonesians and the technology requirements.
Indonesia Energy Resources are currently very dependent on the coal usage. About 60% of power plants in Indonesia were fueled mainly by the coal. From mines in Banten and various islands, mainly around Java, coals are easy to be found and easy to be used.
The Indonesian government has repeatedly attempt and tried to distance themselves publicly for the coal energy. They were well aware that coals were one of the source of many problems that polluted the air around West Java and Jakarta to an alarming level.
This makes the shift from coal to another renewable energy to be carried fast. Unfortunately, the Indonesia Energy Resources industry hasn’t been ready enough to move on and distance themselves significantly from the coal based and petroleum power.
The increasing demand and consistently high grow of energy needs, mainly from Java Sumatera and Bali power plants makes Indonesia slowly moved from coal to renewables. But this might soon be changed as the current administration tries again to innovate themselves to renewables.
Another thing that makes Indonesia Energy Resources mainly stayed on the coal dependency is the structure of industry. There are a lot of coal mine owners and investors from the establishment and members or relatives of the government – especially the current administration.
It is not that it automatically turns corruption on rampantly, but due to the cultural and the structural values of Indonesians, there has yet to be a strong push from the civil society to quickly and strongly shrugged the coal energy because the owners were well-connected and strongly influenced the industry.
The Indonesia Energy Resources were currently has yet to be saturated in the private sector. This is because although the government has opened their legal framework to get more investment in renewables, there is still other factors that makes them looked as quite hard to pass on.
Also Read: Geothermal Energy Indonesia, Why Should You Invest in Here?
Challenges of Renewables
There is a lot of challenges among the practical usage of renewables in Indonesia, here we will try to give you a short understanding on the problems and challenges in adopting the renewables. These problems span from choices of the government, and the natural or innovative barrier.
Gatekeeping Investments
Gatekeeping of Indonesia Energy Resources by Indonesian government came not from a cynical or political minded people. This is mainly to protect the green environment as the government and civil society alike were alarmed and disturbed by the decreasing green area, mainly in Borneo.
This is because, often times within the discoveries or explorations of energy, there is a lot to be built. The Grid, the power plant, the offices, roads, bridges – these were vital for investors to find and exploit the resources within the lands. Thus, the more investments often meant more cutting trees.
Indonesia Energy Resources is correlated strongly with the deforestation and infrastructure construction. Thus, every time an exploration is agreed upon, there would be more shares of jungles and forests to be carved and cut out. This would impact the environment and natural ecosystem.
These days however, there are a lot of less gatekeeping laws because the government has tried more and more to strengthen their ease of doing business. The ministry of energy and mining with the ministry of forestry collaborated on making gatekeeping for investors more supervised but less limited.
Thus, the way to improve geothermal collection and production, and the solar energy is currently on the rise. The Indonesia Energy Resources being more diverse, strong and would transition easily and quickly to renewables rather than the other countries that just won’t try.
The government also tries to build more and more diverse and sustainable source of energy resource so that the renewables were easily built and distributed. So now, the energy is directed to the more localized products. If you live near the waters, there will be water energy generator, and so on.
Indonesia Energy Resources is diversifying and innovating fast – a fact that rose because of the more concrete laws from the central and regional government. There is better law assurance for land, profit sharing, productions, and many other things to come.
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The Human Resource
Graduates of engineering, mainly in energy harnessing majors such as mining, geothermal studies and it’s kin is increasingly pumping more and more graduates and experts that understand the discovery, production and marketing process of renewables and coal.
These people would be the steward and stewardess of Indonesia Energy Resources. Many of these experienced scholars and industry veterans could work with you as trusted partners to navigate the business and industrial risks in order to gain the best result for your business interest.
A number of selected people who are trustworthy and knows what they should do is currently working with Proconsultofficial.com – they understand the business climate of Indonesia and Indonesia Energy Resources better than most of other could do.
These were trustworthy, experienced and understand what they’re doing. Proconsultofficial.com would listen to your problems, find the best solution and be with you in every step of the way to maximize your investment benefit in Indonesia Energy Resources. Get a session in their site now!
Also Read: Solar Energy Indonesia, Best Investment Business?