You are on page 1of 1

CLEAN TECH

Market Potential

Indonesia

A GLOBAL PLAYER
th
4 most populated
country in the world
(250 million people)

CHANGING SOCIETY
Rapidly growing urban
population and middle
class

GREEN POLICY SHIFT


New national policies for
green energy and building
and investment incentives

DEMAND FOR GREEN


Natural conditions for
clean energy production
and demand for related
services and goods

Indonesias economic development and social changes have strongly accelerated the need for a
new paradigm in the countrys environmental, infrastructure, energy and transport dynamics.
The new Indonesian government has recognized the need for more sustainable investment and development practices,
and has been facilitating projects which respond to this demand.
Opportunities for European businesses thrive in the green sector in the form of direct investment, partnership ventures,
technology export, consultancy and training.
The highest potential is found in clean energy, green building and water and waste management, with many promising
opportunities in public projects which are part of the framework of the 2013-2024 Masterplan for Acceleration and
Expansion of Indonesia's Economic Development and other regional infrastructure development initiatives.
Indonesia has a national commitment to reduce carbon emissions by 26% in 2020.
CLEAN ENERGY
Indonesias 2014 National Energy Policy aims for a 23% share of the overall energy mix for renewable
resources by 2025. The government has been pushing for the development of the needed
infrastructure through Public Private Partnership (PPP) offers and tax relief schemes. Moreover, new
regulations established a new feed-in tariff for hydro power, geothermal, solar, bioenergy, landfill gas
and municipal waste applications using zero-waste technology. Indonesias energy market is opening
rapidly with various ongoing and future projects confirming the countrys high potential.

GREEN BUILDING
Green building has been given a central role in Indonesias much sought energy shift, as Indonesian
authorities consider that its expansion is vital to the countrys transition. Since 2013, Indonesia has in
place a national green building agency and certification policy, while mandatory sustainability and
energy efficiency standards are already fully enforced in the major cities of Jakarta and Surabaya. The
growth of this segment has been well received, visible in the ongoing rise of FDI directed at clean
energy technology in the emergence of more financing opportunities.

WATER AND WASTE MANAGEMENT


With the ongoing steep increase in urban population and general consumption, waste management is
becoming vital for the welfare Indonesians and the countrys environment. Urban population is
expected be at 60% of the total in 2025 and the government has intensified pro-sustainability
programmes and the promotion of investment in waste management technologies. Currently, many
national and regional projects are planned or underway, involving international development support
and Public Private Partnerships (PPP).

For more information and business support in Indonesia visit www.eibn.org

MAJOR
OPPORTUNITY
FACTORS
Fuel Subsidy
phase-out
Production of
components and
equipment is
residual.
Easier property
and ownership
regulations for
green projects.
Local business
partnership
potential and
interest in this field
is high.
Expertise in
implementation,
operations and
training needed.