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Energizing the power sector (English)

A reliable, affordable and sustainable supply of electricity is essential for Indonesia to emerge as a large mid-income economic power in the next decade. The power sector is now at a critical juncture and facing considerable challenges: 1) significant investments from both public and private sectors are required to sustain economic growth and increase access of the poor to electricity; 2) low tariff levels undermine the public energy utility, Perusahaan Listrik Negara's (PLN) financial viability, stall much needed capacity expansion and lead to unsustainable government subsides; 3) investment in key national power companies is hampered by the legal and regulatory uncertainty caused by the annulment of the 2002 Electricity Law; and 4) high upfront costs and a lack of adequate incentives have impeded significant progress in the development of renewable energy resources, especially geothermal power.




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Energizing the power sector (English). Indonesia rising : policy priorities for 2010 and beyond Washington, D.C. : World Bank Group.