Indonesia's Cost of Hydropower Production Still High, an Industrial Info Market Brief

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Indonesia's hydroelectric power plants cannot compete with steam and coal-fired power plants due to the high cost of water supply production, according to Water Resources Management Services. If the Indonesian government encourages to use of hydropower as a renewable energy source to reduce emissions, it will be more costly compared to fossil-fueled power stations.

Therefore the Coordinating Ministry for Economic Affairs, the Ministry of Finance, the Ministry of Energy and Mineral Resources, and the Ministry of Public Works and Housing decided to form a team to evaluate the tariff of electricity to calculate the variable from the processing costs and the value of benefit costs, as well as the use of the budget based on needs which have been proposed so far.