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ARTICLE · 17 FEBRUARY 2016

New Presidential Regulation To Accelerate Indonesian 35GW Power Generation Program

Baker & McKenzie - Hadiputranto, Hadinoto & Partners
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PR 4/2016 touches on a very broad range of issues affecting power project development in Indonesia.

IndonesiaEnergy and Natural Resources
Kirana Sastrawijaya
Kirana Sastrawijaya
Anita Sungkono
Anita Sungkono
Andika Budi
Andika Budi
Kim Hock Ang
Kim Hock Ang

One of the key platforms of President Joko Widodo's run for presidential office in 2014 was his promise to accelerate Indonesia's movement up the curve in terms of its domestic infrastructure capacity, to enable Indonesia to compete with other ASEAN nations in the face of the upcoming ASEAN Economic Community reforms. A key pillar of this infrastructure plan was the President's desire to develop 35GW of new power generation projects. However, the announcement by the Indonesian Government of aspirational power generation development programs was not a new phenomenon – the "First Fast Track" program of 10,000MW of new power generation was announced in 2006, and the "Second Fast Track" program of 10,000MW, coming largely from renewable energy projects, was announced in 2010. To date, the realization of the targets of both of these programs has been average-to-poor, and industry has cited the myriad Indonesian laws and regulations, and matrix of Indonesian

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