As Indonesia's economy recovers from its 1997 economic collapse, energy consumption is expected to rise. As Indonesia has no natural gas infrastructure, the country's fuel needs most likely will be met by its other domestic fossil fuel resources, oil and coal. Coal is considered to be an especially promising resource, as Indonesia's plentiful coal reserves are largely untapped. As oil and coal consumption increase, carbon emissions are expected to increase. The preservation of such sinks is as important to climate change issues as the reduction of carbon emissions.
Deforestation is a major problem in Indonesia.
Renewable Energy Indonesia has considerable renewable energy potential. Geothermal energy is a renewable energy source produced when ground water descending from the earth's surface meets molten magma rising toward the earth's surface, creating steam. The steam is trapped in the earth's crust in reservoirs, which can be accessed by drilling a well into the reservoir. This gives Indonesia a wealth of geothermal power potential, which has been explored only recently. In 1997, Texaco and Chevron's joint Indonesia representative drilled an exploratory geothermal well in the oil and gas producing Darajat area.