Analysis of Global Power Market

Analysis of Global Power Market Overview of Indonesia Power Market (1/2) Power Consumption, Indonesia, 2016-2023E TWh 500 CAGR Power Consumption (16-18) (18-23E) 6.6% 6.4% 400 360.5 338.8 318.3 299.1 300 281.1 266.8 247.1 200 100 0 383.6 2016 2017 2018 2019E 2020E 2021E 2022E 2023E ➤ The total power consumption in Indonesia increased from 247.1 TWh in 2016 to 281.1 TWh in 2018 at a CAGR of 4.7% and is forecasted to reach 383.6 TWh in 2023 with a CAGR of 8.0% during the period from 2018 to 2023. The growth of the power consumption in Indonesia is mainly driven by economic growth, population growth and the electrification program, as well as development programs that trigger the growth of new business and residential areas. Increasing the national electrification ratio, especially in 3T (foremost, outermost and lagging) regions, has long been a strategic focus of the government and PLN*. ➤ Additionally, continuous investments in power infrastructure, including the construction of plants, transmission networks and distribution networks, are expected to strengthen the power supply in Indonesia, delivering power with good quality and reliability to the consumers. • • The total cumulative power installed capacity in Indonesia increased from 54.7 GW in 2016 to 57.8 GW in 2018 with a CAGR of 2.8 % and is expected to further grow to 92.8 GW in 2023, indicating a CAGR of 9.9% during the period from 2018 to 2023. Considering the installed capacities of different power sources, coal and natural gas are the major sources of power plants in Indonesia and are expected to remain dominating in the foreseeable future. The government and PLN are planning to strictly limit the generators of diesel and actively promote the development of renewable energy, such as hydropower, solar power and wind power, in order to mitigate the increasingly environmental concerns. * PLN (Perusahaan Listrik Negara, State Electricity Company), is an Indonesian government-owned corporation which has a monopoly on electricity distribution in Indonesia and generates the majority of the country's electrical power. FROST SULLIVAN Source: PLN, Frost & Sullivan 34

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