Indonesia's 35 GW power programme: turning obstacles into opportunities
In January 2015, the Indonesian government launched the '35 GW Programme' to build a new wave of power plants across the country. The programme has a critical strategic significance given looming power shortages. However, 12 months into this programme and progress has been slow. Indeed, the experience of previous fast-track programmes shows the programme will face numerous challenges. Obstacles such as land acquisition can tie up developments for years. The government is hoping to encourage success and has initiated some streamlining measures in addition to market reforms. Significant opportunities exist for various players throughout the value chain - LNG and coal suppliers, EPC companies, power plant operators, and financial institutions. The programme sees a much greater role for independent power producers. But participants will need to understand which projects offer the best chance of being realised and how to mitigate the obstacles in their way.