Green Energy Technologies Indonesia Market Study DECEMBER 2017 © Copyright EU Gateway | Business Avenues The information and views set out in this study are those of the author(s) and do not necessarily reflect the official opinion of the European Union. Neither the European Union institutions and bodies nor any person acting on their behalf may be held responsible for the use which may be made of the information contained therein. The contents of this publication are the sole responsibility of EU Gateway | Business Avenues and can in no way be taken to reflect the views of the European Union. The purpose of this report is to give European companies selected for participation in the EU Gateway | Business Avenues Programme an introductory understanding of the target markets countries and support them in defining their strategy towards those markets. For more information, visit www.eu-gateway.eu. Photo by Benson Kua, distributed under CC licence BY-SA 2.0. EU Business Avenues in South East Asia Central Management Unit Indonesia Market Study December 2017 Submitted to the European Commission on 08 December 2017 Green Energy Technologies – Indonesia Market Study - Page 3 of 261 Table of contents TABLE OF CONTENTS .............................................................................................................................................. 4 LIST OF FIGURES ...................................................................................................................................................... 7 LIST OF TABLES ........................................................................................................................................................ 8 TABLE OF ABBREVIATIONS .................................................................................................................................. 10 1. EXECUTIVE SUMMARY ....................................................................................................................................... 13 2. WHAT ARE THE CHARACTERISTICS OF INDONESIA? .................................................................................. 21 2.1 POLITICAL OVERVIEW ........................................................................................................................... 21 2.2 ECONOMIC OVERVIEW ........................................................................................................................... 22 2.3 TRADE OVERVIEW ................................................................................................................................. 24 2.4 MARKET ACCESS .................................................................................................................................. 26 2.5 BUSINESS AND COMPETITIVE ENVIRONMENT .......................................................................................... 26 3. MARKET OVERVIEW & EU ENTRY OPPORTUNITIES IN INDONESIA ............................................................ 29 3.1 THE GREEN ENERGY TECHNOLOGIES SECTOR IN INDONESIA.................................................................... 29 3.1.1 Overview of the Green Energy Sector ............................................................................................ 29 3.1.2 Key Institutional Actors for Green Energy Technologies ................................................................ 33 3.1.3 Relevant Policy Initiatives to Accelerate GET ................................................................................ 35 3.1.4 Domestic Research & Development (R&D) on GET ...................................................................... 38 3.1.5 Key Associations ............................................................................................................................ 41 3.1.6 Entry Strategies .............................................................................................................................. 42 3.1.7 Challenges and Entry Barriers ........................................................................................................ 45 3.2 WIND ..................................................................................................................................................... 48 3.2.1 Market Overview ............................................................................................................................. 48 3.2.2 EU Entry Opportunities ................................................................................................................... 57 3.3 SOLAR ................................................................................................................................................... 63 3.3.1 Market Overview ............................................................................................................................. 63 3.3.2 EU Entry Opportunities ................................................................................................................... 74 3.4 AEROTHERMAL ....................................................................................................................................... 82 3.4.1 Market Overview ............................................................................................................................. 82 3.4.2 EU Entry Opportunities ................................................................................................................... 82 3.5 GEOTHERMAL ......................................................................................................................................... 83 3.5.1 Market Overview ............................................................................................................................. 83 3.5.2 EU Entry Opportunities ................................................................................................................... 94 Green Energy Technologies - Indonesia Market Study - Page 4 of 261 3.6 HYDROTHERMAL AND OCEAN ENERGY .................................................................................................. 103 3.6.1 Market Overview ........................................................................................................................... 103 3.6.2 EU Entry Opportunities ................................................................................................................. 107 3.7 HYDROPOWER ...................................................................................................................................... 114 3.7.1 Market Overview ........................................................................................................................... 114 3.7.2 EU Entry Opportunities ................................................................................................................. 124 3.8 BIOMASS .............................................................................................................................................. 130 3.8.1 Market Overview ........................................................................................................................... 130 3.8.2 EU Entry Opportunities ................................................................................................................. 137 3.9 LANDFILL GAS/ SEWAGE TREATMENT GAS / BIOGAS ............................................................................. 142 3.9.1 Market Overview ........................................................................................................................... 142 3.9.2 EU Entry Opportunities ................................................................................................................. 151 3.10 POWER GENERATION .......................................................................................................................... 158 3.10.1 Market Overview ......................................................................................................................... 158 3.10.2 EU Entry Opportunities ............................................................................................................... 168 3.11 ENERGY EFFICIENCY & CARBON SERVICES ......................................................................................... 173 3.11.1 Market Overview ......................................................................................................................... 173 3.11.2 EU Entry Opportunities ............................................................................................................... 179 3.12 BIOFUEL ............................................................................................................................................. 183 3.12.1 Market Overview ......................................................................................................................... 183 3.12.2 EU Entry Opportunities ............................................................................................................... 186 3.13 COGENERATION TECHNOLOGY ............................................................................................................ 191 3.13.1 Market Overview ......................................................................................................................... 191 3.13.2 EU Entry Opportunities ............................................................................................................... 196 3.14 CARBON CAPTURE AND STORAGE .....................................................................................................