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Indonesia flag representing Energy Transition Indonesia and SIPET

COUNTRY PAGE - INDONESIA

Indonesia is the largest country in Southeast Asia and the fourth most populous country in the world. It is governed through a unitary presidential constitutional republic. It is the largest archipelagic country in the world, with over 17,000 islands. Indonesia is the fourth largest coal producer in the world and is a former major oil exporter. It was the only Southeast Asian country to have been part of OPEC. Around 87% of its energy comes from fossil fuels, the largest source coming from coal. Its high dependency on coal has made it difficult to shift to renewables, but the need has been acknowledged in recent years.

 

JETP - Indonesia

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Indonesia

During the G20 Summit held in November 2022, Indonesia and the International Partners Group (IPG) - led by the United States and Japan and including Canada, Denmark, the European Union, France, Germany, Italy, Norway, and the United Kingdom announced the second ever Just Energy Transition Partnership (JETP). The Joint Statement is a commitment from the IPG to mobilise an initial USD 20 bn from public and private finance over the next three to five years, to keep Indonesia's commitments to the Paris Agreement and the global warming limit of 1.5°C above pre- industrial levels within reach. The available finance will consist of a mix of grants, concessional loans, market-rate loans, guarantees, and private investments. Of the total investment, public sector pledges account for USD 10 bn, with the private sector aiming to mobilise the remaining USD 10 bn via the support of financial institutions coordinated by the Glasgow Financial Alliance for Net Zero (GFANZ).

POWER SECTOR SNAPSHOT

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Indonesia

Indonesia’s power sector is dominated by coal, which was responsible for over 60% of power generation in 2021. Together with its second-largest power source — natural gas (18%) — and oil (2%), fossil fuels account for 82% of Indonesia’s electricity supply. Established renewable energy sources such as geothermal (8%), hydro (5%) and biofuels and waste (5%) also provide a relevant share of the country’s power, whereas wind and solar still hold negligible shares accounting for a combined 0.2% of power generated in 2021.

The largest share of electricity is used in households (45%), followed by industry (31%) and services (16%).
Generation by Fuel
Emissions by Fuel
Demand by Sector

POWER TRANSITION PROGRESS TOOL

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ET PROJECTS IN INDONESIA

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Indonesia

UPCOMING EVENTS

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Indonesia

LATEST NEWS

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Indonesia plans 10 GW nuclear power in major renewable energy push, presidential aide says

Indonesia plans to add 103 GW of new power capacity by 2040, with a strong focus on renewable energy. According to the president’s aide, contracts for this expansion are expected to be awarded within the next five years as the country accelerates efforts to diversify its energy mix and reduce emissions.

5/6/2025 9:10:20 AM | Drishti Chhibber
Indonesia Launches Green Hydrogen Collaboration for Maritime Transport Decarbonization

Indonesia has initiated a green hydrogen collaboration to decarbonize its maritime sector, aligning with its Nationally Determined Contributions. PT PLN, the Ministry of Transportation, PT HDF Energy Indonesia, and PT ASDP Indonesia Ferry signed a joint study agreement to explore green hydrogen as marine fuel. 

4/23/2025 11:18:47 AM | Admin Admin
Indonesia bourse opens carbon trading to foreign participants

The Indonesia Stock Exchange invited foreign participants to join its carbon trading, saying the certification mechanism has been improved following tepid activities on the IDXCarbon bourse last year.

The IDX listed five low-carbon energy projects under state utility Perusahaan Listrik Negara in its offering of carbon credits to foreign buyers, including gas-powered and hydropower plants on the island of Java. These had previously been available to domestic investors, but IDX and government officials said the certification mechanism has been improved to satisfy foreign buyers.

*This excerpt is from a news item collated by SIPET as part of its mission to serve as a one-stop platform for information and knowledge exchange about the energy transition in Southeast Asia. For the full news item, click on the link next to 'Further Information' . 

**Photo credit: Rezha Hadyan/Nikkei Asia

1/22/2025 2:16:42 PM | Admin Admin
Indonesia wants more independent power plants under new energy plan

Indonesia will rely more on private investors for its planned 71 gigawatt expansion in power capacity over the next decade, with the government to focus on transmission for renewable generation, the country's energy minister said on Monday.

Energy minister Bahlil Lahadalia said state utility Perusahaan Listrik Negara's (PLN) 2025-2034 power supply plan will include 71 GW of new power capacity and 48,000 circuit-km of transmission lines, which is equivalent to 8,000 km (4,971 miles) straight line.

This excerpt is from a news item collated by SIPET as part of its mission to serve as a one-stop platform for information and knowledge exchange about the energy transition in Southeast Asia. For the full news item, click on the link next to 'Further Information' . 

**Photo credit: Wikimedia Commons

1/21/2025 7:38:14 AM | aastha.manocha
Strengthening Data-Driven Decision Making for Indonesia’s Energy Transition: GIZ Indonesia/ASEAN and TransitionZero Form Partnership

Jakarta, 4 November 2024: GIZ Energy Programme Indonesia/ASEAN (GIZ) and TransitionZero, a leading non-profit climate analytics organisation, have announced a strengthened strategic partnership to accelerate Indonesia’s energy transition. This collaboration aims to support the achievement of Indonesia’s ambitious target of increasing the renewable energy mix to 23% by 2025 and realising the decarbonisation of the electricity sector. 

This partnership will focus on several key areas: 

Capacity Building for Energy Studies Centres (ESCs): Through training and access to TransitionZero’s open-source energy modelling tools, ESCs in Indonesia will be equipped with stronger analytical capabilities to design and evaluate effective energy policies. 

Knowledge Exchange and Best Practice Sharing: GIZ and TZ will share knowledge and experience in energy modelling, transition planning, and sustainable energy policies. 

Development of Energy Transition Scenarios: Together, GIZ and TZ will develop realistic and ambitious energy transition scenarios for Indonesia, considering the specific conditions of regions and sectors. 

*This excerpt is from a news item collated by SIPET as part of its mission to serve as a one-stop platform for information and knowledge exchange about the energy transition in Southeast Asia. For the full news item, click on the link next to 'Further Information' .

**Photo credit: CASE

11/28/2024 12:04:57 PM | aastha.manocha

Knowledge Hub

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solar-living-book Accelerating Renewables & Storage Decarbonization Energy Investment Trends Public Energy Investment Indonesia Asia

Accelerating renewable electricity deployment is vital for Indonesia’s net zero goals. This report recommends a regulated joint transmission network utilisation scheme to unlock private investment, enable corporate renewables procurement, and support PLN’s grid plans—positioning Indonesia competitively alongside regional peers like Vietnam and Malaysia in the clean energy transition.

solar-living-book Driving Change – Evolution and Future of Indonesia’s Electric Car Market

This white paper is a collaboration between IESR, Telkomsel, and Periklindo that explores the evolution and future of the electric vehicle market in Indonesia. It highlights the growing urgency to switch to electric vehicles to achieve cleaner, cheaper, and more efficient mobility. It covers key topics such as the current state of EV adoption in Indonesia, challenges faced by consumers, government policies, and the role of advanced technologies such as IoT and telematics. It also provides insights into global EV trends, charging infrastructure development, and the economic impact of Indonesia as a global EV hub. The report emphasizes the importance of supportive policies, technological advancements, and ecosystem development to accelerate electric vehicle adoption and achieve sustainability goals.

solar-living-book Unlocking Indonesia’s Renewables Future: the Economic Case of 333 GW of Solar, Wind and Hydro Projects

This publication examines the potential for renewable energy in Indonesia, which is at a pivotal point in the global energy transition. It highlights Indonesia’s unique opportunity to harness its abundant solar, wind, and hydro resources to drive economic growth, improve energy security, provide affordable electricity and achieve its climate commitments.

The study presents a comprehensive assessment of the country’s renewable energy potential and its economic viability, showing that at least 333 GW of economically viable renewable energy capacity is achievable. 

Authors: Dwi Cahya Agung, Martha Jesica Solomasi Mendrofa, Pintoko Aji, and Sodi Zakiy Muwafiq

solar-living-book Understanding the Importance of the Energy Transition – A Review from a Community Perspective

In Indonesia, which still relies heavily on coal as its main source of energy, shifting to renewable energy is not an easy challenge. Achieving this goal requires strong planning, substantial investment, and policies that support communities affected by coal reduction.

The Institute for Essential Services Reform (IESR) conducted a study to understand public views on the Just Energy Transition Partnership (JETP) and various new energy technologies. 

Among the technologies studied, solar energy emerged as one of the most affordable and promising sources of energy, especially after significant developments. Read the report to find out more.