Market study on Clean Technology in
INDONESIA
OFFICIAL PROGRAMME
MARKET STUDY ON CLEAN TECHNOLOGY IN INDONESIA Language: English Number of pages: 40 Author: Stephan Blocks Anna Brandt Giovanny Tutupoly Chloe Martinez
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Contents
1. EXECUTIVE SUMMARY _______________________5 2. INTRODUCTION _____________________________6 2.1. OBJECTIVE OF THE STUDY __________________ 6 2.2. Methodology _____________________________ 6 2.3. overview of the indonesian economy _____________ 6
3. MARKET ANALYSIS INDONESIA _______________8 3.1. OVERVIEW OF CLEANTECH MARKET __________ 8 3.2. THE 4 CLEANTECH CLUSTERS _______________ 9 3.2.1. Energy efficiency in buildings ________________ 9 3.2.2. Energy Production ______________________ 13 3.2.2.1. National energy mix in Indonesia ___________ 13 3.2.2.2. Photovoltaic _________________________ 14 3.2.2.3. Other solar energy solutions _______________ 16 3.2.2.4. Hydro electric power _____________________17 3.2.2.5. Biogas/Biomass _______________________ 18 3.2.2.6. Geothermal __________________________ 19 3.2.2.7. Other Technology Applications _____________ 21 3.2.3. Solid Waste and Water Treatment ____________ 22 3.2.3.1. Solid Waste Treatment __________________ 22 3.2.3.2. Water Treatment ______________________ 25 3.2.4. Cleantech Services_______________________ 28
4. RECOMMENDATIONS _______________________30 4.1. market entry strategies _____________________ 30 4.2. risk factors _____________________________ 32
5. APPENDIX 1 _______________________________34 6. APPENDIX 2 _______________________________36
1. Executive Summary With approximately 240 million inhabitants, Indonesia is the fourth-largest country by population in the world and South East Asia’s largest economy, which grows at 6 percent annually. Energy demand is increasing by 9 percent annually. The electricity supply cannot keep up with the demand. Energy efficiency measures need to be taken, but the progress is low. So far the focus has been on the supply side. Two 10,000 MW have been put forward to provide enough electricity to all households and industries. Renewable energy is increasing in importance. Private investors are lured into the development of power plants. The Indonesian government set feed-in tariffs for geothermal, biomass/biogas and hydro energy projects. Energy efficiency in buildings is becoming more important. A new governor regulation in Jakarta expects building owners to conserve energy and reduce CO2 emissions. The Green Building Council Indonesia promotes its certification. So far already 8 buildings have been certified voluntarily. Energy efficiency in buildings is one opportunity to enter the market of clean technology services. Building owners are obliged to conduct regular energy audits and report the numbers to the city government, though without any obligation to reduce energy consumption. In the field of solid waste and water treatment Indonesia has high demand. The sanitary situation is not in-line with international standards. Industrial and household waste pollutes drinking water and groundwater. Solid waste is only treated on a limited scale. However, the city government of Jakarta wants to develop waste treatment sites in Jakarta to get the waste problem under control. In the focus are recycling facilities and power plants with zero waste and landfill gas technology.