This paper analyzes performance of the Indonesian electricity sector. The sector is a key factor that could facilitate and accelerate an economy’s competitiveness. Unfortunately, by using descriptive analysis, this paper shows the performance of the Indonesian electricity sector left behind those in its several Asian neighbors. Main policy challenge that need to be addresed is to push the government capability and commitment to develop and manage power plant to increase power supply. In the midst more limited government financial capacity, one possible solution is to encourage private sector to participate in the development of power plant through public private partnership (PPP).
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