Over the past fifteen years, Indonesia has transformed itself. With a GDP close to a trillion dollars and a population of 240m it is truly a regional economic powerhouse. There have been important qualitative improvements too as GDP per capita has grown from USD 2,000 to USD 3,600 in 2013.
According to World Bank estimates, economic growth is set to continue in line with its long term growth rate of 6%. Public finances continue to be healthy with a low debt-GDP ratio (29%).
Electricity demand has been growing by 10% per annum and supply growth lagged. Overall installed capacity is 35 GW. Growth in demand should continue as increased electrification (currently 73%) should compound the effect of economic growth. Hydro power capacity currently stands at 6 GW. Data provided by the Indonesian Energy and Mineral Resource Ministry suggests hydro power potential is 76 GW.
Velcan has been actively prospecting in Indonesia and has a number of projects in various stages on technical appraisal and commercial negotiations totaling approximately 120 MW.