Indonesia Power Generation EPC Market Size (2024 - 2029)

Indonesia Power Generation EPC Market Size Summary

The Indonesia power generation EPC market is poised for growth, driven by the increasing demand for power due to population growth and rapid industrialization. The market is expected to experience a steady expansion, although challenges such as local opposition to pollution from existing power plants may impede progress. The conventional thermal power segment, particularly coal, has historically dominated the market and is anticipated to continue its prominence. This is underscored by the significant contribution of coal to the country's electricity generation, which remains a cornerstone of Indonesia's energy strategy. Despite the government's ambitious plans to diversify energy sources with a substantial portion from renewables by 2050, coal is expected to remain a key player in meeting the country's energy demands in the near term.

The shift from being a net oil exporter to a net importer highlights Indonesia's growing energy needs, further emphasizing the importance of expanding power generation capacity. The country's energy landscape is marked by a diverse mix of sources, including coal, natural gas, and renewables, with coal still playing a pivotal role. Significant projects, such as the expansion of the Tanjung Jati B coal-fired power plant and the development of natural-gas-fired power generation facilities, illustrate the ongoing investments in conventional thermal power. These developments are crucial for accommodating the anticipated surge in energy consumption. The market is moderately consolidated, with key players like General Electric Company and Marubeni Corp actively participating in shaping the future of Indonesia's power generation infrastructure.