Despite a preponderance of energy reserves, Indonesia is facing a number of challenges in ensuring that it has sufficient energy supplies to support its continued economic growth. Looking ahead, a lack of power generation capacity, limited investment in the energy sector and the relative decline of production capacity against demand all pose significant problems.

The future of the Indonesian energy sector will be a priority for the Widodo Government, as is a recognition that greater investment of both finance and expertise – foreign and domestic – will be needed to transform the energy sector to support the country’s continued economic growth.

Opportunities will likely emerge in coming years for greater commercial engagement in Indonesia by foreign businesses with energy sector expertise and knowledge. With a strong energy industry, Australian business may have much to gain from engaging in the Indonesian energy sector out to 2030.