Sector
Energy
Indonesia possesses vast, distributed, and diverse energy resources. The country’s energy subsectors include gas, clean water, and electricity, with demand projected to increase to 464 terawatt-hours (TWh) by 2024 and further increase to 1,885 TWh by 2060. The use of renewable energy is a top priority and the government has set ambitious goals in the General Planning for National Energy (RUEN) and General Planning for National Electricity (RKUN) to integrate 23 percent renewable energy into the national energy mix by 2025. At least US$41.8 billion of investments are needed to fully realize the goal.
View moreEnergy
Indonesia possesses vast, distributed, and diverse energy resources. The country’s energy subsectors include gas, clean water, and electricity, with demand projected to increase to 464 terawatt-hours (TWh) by 2024 and further increase to 1,885 TWh by 2060. The use of renewable energy is a top priority and the government has set ambitious goals in the General Planning for National Energy (RUEN) and General Planning for National Electricity (RKUN) to integrate 23 percent renewable energy into the national energy mix by 2025. At least US$41.8 billion of investments are needed to fully realize the goal.
Despite having a renewable energy potential estimated at around 3,000 gigawatts (GW), current utilization is merely about 12.74 GW or 3 percent. This renewable energy potential includes solar energy, which is widely spread across Indonesia, especially in East Nusa Tenggara, West Kalimantan, and Riau, with a potential of approximately 3,294 GW and utilization of 323 megawatts (MW). Another renewable energy, hydro energy, with a potential of 95 GW, is primarily found in North Kalimantan, Aceh, West Sumatra, North Sumatra, and Papua, with utilization reaching 6,738 MW.
Additionally, bioenergy, encompassing biofuel, biomass, and biogas, is distributed throughout Indonesia with a total potential of 57 GW and utilization of 3,118 MW. Wind energy (>6 m/s) found in East Nusa Tenggara, South Kalimantan, West Java, South Sulawesi, Aceh, and Papua has a substantial potential of 155 GW, with utilization of 154 MW.
Furthermore, geothermal energy, strategically located in the “Ring of Fire” region covering Sumatra, Java, Bali, Nusa Tenggara, Sulawesi, and Yogyakarta has a potential of 23 GW and utilization of 2,373 MW. Meanwhile, marine energy, with a potential of 63 GW, especially in Yogyakarta, East Nusa Tenggara, West Nusa Tenggara, and Bali, remains untapped.
Among the renewable energy sources and their potential, these projects entail significant investments. According to the Electricity Supply Business Plan (RUPTL) of the State Electricity Company (PLN), from 2021 to 2030, geothermal power plants require an investment of US$17.35 billion, large-scale solar power plants necessitate US$3.2 billion, hydropower plants require US$25.63 billion, and base renewable energy power plants require US$5.49 billion. Additionally, bioenergy power plants require an investment of US$2.2 billion, wind power plants US$1.03 billion, peaker power plants US$0.28 billion, and rooftop solar power plants IS$3 billion.
As of 2022, hydro and geothermal are the primary drivers of growth. Private entities had enhanced the capacity of hydro power by adding 603.66 MW in mini, micro, and standard hydro facilities, reaching a total of 2,459.72 MW. Meanwhile, the geothermal sector experienced a 412 MW increase over the last five years from the private sector, bringing the total capacity to 1,782.8 MW by 2022. Aside from these two renewable energy, sources solar energy has also presented significant opportunities, particularly given Indonesia's potential for floating solar systems on reservoirs and dams.
Furthermore, the country’s other national energy subsector of gas underscores Indonesia’s wealth in natural gas. Indonesia’s natural gas reserves are predominantly methane (80-95 percent), which can be used directly or processed into Liquefied Natural Gas (LNG). However, demand has greatly increased over the past decade for Liquefied Petroleum Gas (LPG). From 2018 to 2022, domestic LPG production reached between 1.9 to 2 million tons, which is insufficient to meet national needs, leading to increasing imports that reached 6.74 million tons in 2022.
Currently, the Energy and Mineral Resources Ministry is working to attract new investments for LPG refineries through a cluster-based business scheme for the construction or future development of new LPF refineries. The ministry has identified the potential of rich gas to produce an additional 1.2 million tons of LPG cylinders domestically.
Latest News
The Attorney General’s Office (AGO) has detained Samin Tan as a suspect in a graft case implicating several officials in the alleged illegal mining activities conducted by PT Asmin Koalindo Tuhup (PT AKT), of which Samin is a beneficial owner. This is not the first time the coal tycoon has faced legal trouble in a case implicating public servants, and the latest case comes amid President Prabowo Subianto’s broader crackdown on illegal mining. Meanwhile, the legal process also highlights the growing reach of the extrajudicial authority of the Forest Area Enforcement Task Force (Satgas PKH).
Samin was named as a suspect on March 28 in a case pertaining to PT AKT’s illicit mining activities, which prosecutors say were enabled by corrupt officials. He has been charged under several provisions of Law No. 1/2023 on the Criminal Code and Law No. 31/1999 on corruption eradication, including articles related to corporate liability and illicit enrichment.
Nearly a decade earlier, the Energy and Mineral Resources Ministry revoked PT AKT’s coal mining concession work agreement (PKP2B) for a 21,630-hectare mine in Murung Raya regency, Central Kalimantan, on Oct. 19, 2017. The decision came after parent company PT Borneo Lumbung Energi & Metal (BLEM) received three warnings over allegations that it had used PT AKT’s concession to secure a loan from Standard Chartered Bank. Legal challenges by PT AKT failed, and courts rejected the company’s final appeal in 2018.
In a previous case, Samin sought help from Golkar Party lawmaker Melchias Marcus Mekeng and ex-Golkar legislator Eni Maulani Saragih regarding issues related to PT AKT’s PKP2B. In return, Eni requested funding support for her husband’s election bid for regent of Temanggung, Central Java, and Samin transferred Rp 5 billion (US$288,370). This led to his subsequent arrest by the Corruption Eradication Commission (KPK) in connection with Eni’s bribery case. He was acquitted in that case after the Supreme Court ultimately rejected the KPK’s appeal against a lower court’s decision.
In December 2025, Satgas PKH found that PT AKT had continued mining 1,699 hectares of its former concession area and imposed an administrative fine of Rp 4.24 trillion. Article 110B of Law No. 6/2023 stipulates administrative sanctions, including fines, against unlicensed business activities conducted in forest areas prior to Nov. 2, 2020. Samin later asked that he be allowed to pay a reduced fine in five installments through February 2027 and had paid $7 billion and Rp 100 billion as of March 2 before he was arrested in the latest case.
Authorities named three additional suspects on April 23: harbormaster and port authority head Handry Sulfian, who allegedly received bribes to approve coal shipments linked to Samin’s companies, including PT Mantimin Coal Mining; PT AKT director Bagus Jaya Wardhana for allegedly overseeing mining and exports using another company’s documentation; and PT OOWL Indonesia general manager Helmi Zaidan Mauludin, who allegedly helped produce necessary certificates and verification reports.
Samin’s lawyer Dodi S. Abdulkadir said on March 31 that his client had been arrested without receiving formal summons, although Satgas PKH had submitted the relevant case files to the Office of the Deputy Attorney General for Special Crimes in January. Independent findings based on 4.7-meter resolution satellite imagery by Tempo and environmental NGO Auriga Nusantara estimated that 184 hectares of forest had been converted into mines, significantly lower than the figures provided by Satgas PKH.
Samin’s arrest may underscore Satgas PKH’s readiness to enforce compliance through coercive measures. The multiagency task force, which includes personnel from the AGO, the National Police, the Forestry Ministry and the Indonesian Military, said as of early 2026, it had detected 8.8 million hectares where 75 miners were conducting illegal activities. Its reliance on administrative sanctions signals a preference for swift enforcement.
While Samin’s arrest reflects the government’s taking decisive action against illegal mining, it also underscores a need for transparency and sound legal processes to avoid a repeat of his acquittal in the KPK’s Eni bribery case. At the same time, Satgas PKH’s emphasis on extrajudicial fines risks their potential abuse as unintended incentives, particularly in cases where forest concessions are reclaimed and then transferred to state-owned enterprises. The ongoing efforts to combat illegal mining should serve as a foundation for structural reform rather than merely to channel additional state revenue.
