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RI one of world's 5 largest economies by 2030, says PWC
Indonesia will be in the top five countries with the biggest gross domestic product (GDP) by 2030, a study predicts
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Indonesia will be in the top five countries with the biggest gross domestic product (GDP) by 2030, a study predicts.
The study, commissioned by PricewaterhouseCoopers (PWC), a multinational professional service network, said Indonesia could even climb to be the fourth largest economy in terms of purchasing power parity (PPP) by 2050 if it could maintain its strong economic fundamentals and steady economic growth.
'One of the main factors in maintaining Indonesia's economic growth is the availability of energy,' said PWC as quoted by Antara news agency in its report released on Tuesday.
PWC said self-reliance in energy supply would be a focus for the country in the coming years as its fossil-based fuel consumption would continue to grow, given its expanding economy and growing population.
At the same time, it said, Indonesia's oil reserves were dwindling fast, resulting in shrinking production and growing dependence on oil imports for fuel.
Medco Group owner Arifin Panigoro said that in the next 10 years, Indonesia's national energy demand would reach 7.7 million barrels oil equivalent per day, 2 million barrels of which would be in fuel.
He said if the government's program on alternative energy development failed, the country's fuel demands would rise to 3 million barrels per day in 2025.
'Indonesia's crude oil production reached 794,000 barrels per day in 2014 and the production is expected to shrink to only 453,000 barrels per day in 2025,' Arifin said, adding that the current amount of oil reserves reached around 3.7 billion barrels.
With growing oil consumption amid declining production and shrinking reserves of fossil-based fuel, Arifin said it was time for Indonesia to be more serious about developing alternate sources of energy, especially renewable energy.
According to Arifin, biodiesel should be the first priority for development to achieve self-sufficiency in energy supply.
'CPO-based 'green diesel' will be the best solution to achieve self-sufficiency in energy," Arifin said, adding that Indonesia was the world's largest producer of crude palm oil, producing around 30 million tons of the commodity a year, accounting for 47 percent of the world's CPO market. (ebf)(++++)
