Power sector reform: Lessons for Indonesia

The government of Indonesia is trying to reform its power sector by introducing competition. This paper tries to identify issues that have arisen around power sector reforms attempted by various countries in the world. Economic and Engineering issues such as; market design, generation adequacy, transmission operation, retail competition, and regulation have been identified as the crucial areas that will determine the successes or failure of such reform processes. In this paper we attempt to review these briefly and try and identify the relevant issues and lessons to be derived for Indonesia.