What should you know about Indonesia’s clean technology market?
Modern technical equipment in Indonesia is not locally produced, therefore is has to be imported. If you plan on investing in a business opportunity, you can do so in this sector. Moreover, another opportunity is in the high demand for energy for electricity production and transportation, which stems from the country’s strong economic growth. Private sectors are expected to step in and invest in the energy sector, and certain regulations to improve energy efficiency will soon be implemented, such as reduced energy elasticity and new labeling standards. This ongoing demand for energy efficiency presents many business opportunities.
What are some potential energy-saving strategies and plans being developed?
ADB estimates a $1B investment in the improvement of energy efficiency in buildings, with annual savings of approximately $254M. Indonesia also plans to reduce energy consumption by 35-40% by installing more efficient lighting and air conditioning systems. The increasing demand for “green” certifications of buildings should also be considered.
What is the energy production situation in Indonesia?
In the past ten years, coal consumption in Indonesia has increased drastically, by almost doubling. Coal has slowly gained prominence over natural gas consumption. In the upcoming years, Indonesia plans to lessen its dependence on petroleum, and taking its percentage share down to 25% of the energy mix, while increasing coal (30%) and natural gas (22%) usage by 2025. Plus, the government has begun taking steps to reduce emissions caused by the greenhouse effect.
The country is home to immense sources of renewable energy, and has 40% of the world’s known geothermal resources. There is great potential in solar, biomass, and hydropower energy production.
How is the solid waste and water treatment in Indonesia?
There is a high demand for solid waste and water treatment. Waste is mostly organic, and the focus for the upcoming years in the country’s capital is to use gasification or waste combustion strategies to manage solid waste.
Meanwhile, with an annual rainfall of 2,700 mm, there are sufficient water resources in the country, but there is an increasing demand for water because of the manufacture sector’s growing size and the country’s urbanization. Therefore, this presents opportunities in developing integrated management systems for wastewater.
So I’ve decided to invest in this industry. What’s the next step?
In order for your business or investment to thrive, you should always consider partnering with a local Indonesian company either as distributors or project partners.
They will supervise your contact with potential Indonesian customers. Moreover, it is very advisable that you operate with an Indonesian business counterpart.