Indonesia, Asia’s Next Clean Energy Battle Ground!
Indonesia needs to sign a new renewable energy contract in the next three years to counter its massive demographic shift, according to a report in ‘Indonesia Clean Energy Outlook’.
The country is Southeast Asia’s largest economy and democracy and is rapidly approaching a demographic shift in the next ten years.
Experts claim that Asia’s next clean energy battle will not be in India or China but in Indonesia. In a decade, almost half of its population will enter the workforce and 7 out of 10 people will be working by 2030, the report said.
The country’s conventional poverty rate has declined and it is experiencing enormous urban migration.
Although the situation is similar to that of other countries in Southeast Asia, it has not negotiated a new renewable energy contract in three years.
According to the report, it will become the largest contributor to the region’s ballooning energy demand over a short period of time due to rapid growth and will soon join both India and China as a global hotspot for power needs.
Indonesia’s electricity needs are reportedly set to almost double in the next 10 years. Without immediate measures, it can offset the region’s positive growth due to its heavy reliance on fossil fuels, the report claimed.
However, Indonesia expects to put an end to stalled clean energy growth in March.
According to sources, a ministry regulation has been aiming to attract investment in the sphere of renewable energy. Malaysia and Vietnam have supported Indonesia in its endeavour.
Indonesian President Joko Widodo implied in a speech last year that reducing coal will become a national policy.
However, to meet the goal of 23 per cent renewables from 12 per cent in its energy mix by 2025 it will need to cancel coal projects which already exist in the construction pipeline.