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View all search resultsIndonesia’s fiscal position is coming under increasing pressure as global energy prices rise. Early fiscal data already signals strain, with the budget deficit reaching 0.93 percent of gross domestic product - about a third of the 3 percent ceiling - within the first three months of the year. The abrupt reshuffle of key budget officials at the Finance Ministry has further added uncertainty at a time when policy consistency is crucial.
Renewables haven't failed; they are surging. But unprecedented demand growth, including for powering data centers and AI, along with infrastructure lags, mineral risks and mounting waste, keep moving the goalposts of the energy transition.
The oil and gas shortage caused by the United States-Israeli war on Iran should drive demand for renewables, but Indonesia’s inadequate grid infrastructure means a long waiting list remains for rooftop solar installation.
The agencies quoted Lavrov as saying that the visit would take place in the first half of the year, while the Vedomosti newspaper cited sources as saying it would be during the week beginning May 18.
Those most exposed to energy market disruption share a set of structural characteristics: heavy reliance on imported fossil fuels, limited fiscal space and constrained energy systems that make it difficult to switch to alternatives quickly.
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