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.

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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.

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

October 1, 2026

Indonesia has barely had time to digest one high-profile corruption scandal before another has breached the surface, this time striking at the heart of the country's land administration. The latest case centers on the Agrarian and Spatial Planning Ministry/National Land Agency (BPN). A sweeping bribery probe by the Corruption Eradication Commission (KPK) has ensnared senior bureaucrats, a prominent property developer and multiple operatives identified as close associates of minister Nusron Wahid, a Golkar politician.

The investigation does not establish criminal liability on Nusron’s part, yet it forces a critical question to the fore: How much political and administrative responsibility should a minister carry when an alleged graft network operates freely within an agency under his purview, manned by figures from his own inner circle?

On Sept. 14, the KPK launched a sting operation in Bogor, West Java, targeting illicit payoffs tied to the right to build (HGB) permit of developer PT Summarecon Agung. Eight out the 19 people questioned initially have been named as suspects, the roster reading like a nexus of bureaucratic authority, corporate capital and political patronage: Lampri, director general of land and spatial control; Sontang Coin Manurung, head of the Bogor Land Office; Adrianto Pitojo Adhi, president director of Summarecon Agung; Fahd El Fouz A Rafiq, a Golkar politician; Arif Sugiyanto, former regent of Kebumen, Central Java; and three private intermediaries.

Investigators seized Rp 106.3 billion (US$6.3 million) in cash, including Rp 104.96 billion from Arif’s residence. Critically, the KPK has tied four of the suspects, Arif, Fahd, Erwin and Muhammad Fakhry, directly to Nusron. Investigators allege that Arif collected illicit fees from land service transactions and funneled the proceeds to Fahd, whom the antigraft agency described as a trusted confidant of the minister.

The KPK previously warned of eight systemic vulnerabilities plaguing the land sector, ranging from arbitrary service delays and illicit levies to lax oversight of HGU concessions and land certificate fraud. The Bogor sting’s findings do not reveal an institutional aberration; they expose an open wound. The ministry, combined with the BPN, wields absolute discretion over who acquires, transfers and exploits land: decisions that carry immense economic and political capital.

Nusron has pledged to cooperate with the legal process and denied any knowledge of the scheme, while the KPK maintains it is following the evidentiary trail rather than targeting individuals. Holding political custody of a compromised ministry does not make a minister a criminal accomplice. Yet political accountability cannot hide behind the threshold of criminal guilt. The core issue is administrative failure: Did ministerial leadership establish the internal controls necessary to detect an illicit network operating across multiple tiers of the bureaucracy, especially one allegedly piloted by its own political allies?

Fahd’s reappearance makes the case particularly toxic, given this is his third brush with the KPK. Having served prison sentences for his role in the regional infrastructure adjustment fund (DPID) scandal and the notorious Quran procurement graft at the Religious Affairs Ministry, his enduring influence exposes an endemic institutional rot: Why do graft convicts continue to enjoy frictionless access to the corridors of power?

Despite his criminal record, Fahd has remained entrenched within Golkar's central leadership, retained access to ATR/BPN's orbit and allegedly served as the pipeline's primary collector. Formal punishment may strip an operative of public office, but it routinely fails to dismantle the illicit patronage networks that facilitate state capture. The spotlight on Nusron has intensified amid overlapping developments. News recently emerged that he had stepped down from Golkar's central executive board. While Golkar secretary-general M. Sarmuji clarified that Nusron resigned more than six months ago, and Nusron noted he had discussed his exit with party chairman Bahlil Lahadalia as early as 2025, the timing of the disclosure amid an active KPK probe has inevitably compounded public scrutiny.

At the same time, Nusron’s name has surfaced in the ongoing trial over the 2023-2024 haj quota allocation, in which witnesses testified that roughly $400,000 had been channeled to the 2024 Haj Special Committee. The Supreme Audit Agency (BPK) estimates the scheme incurred Rp 622.09 billion in state losses. The timing could not be worse. On Sept. 22, the House of Representatives passed the landmark agrarian reform bill, establishing the National Agrarian Reform Agency (BRAN) to curb historical land inequality and resolve territorial disputes. Yet the very apparatus tasked with land administration is now deeply compromised.

Genuine agrarian reform cannot simply be drafted into existence through new agencies or legislation. Its legitimacy hinges entirely on the integrity of the gatekeepers who issue, register and enforce land titles. If the administrative machinery remains hostage to unofficial levies, discretionary favors and shadow networks, statutory reform becomes an empty, cosmetic exercise. The probe into the ministry/BPN cannot merely conclude with eight indictments and a disclaimer from the minister. The real test is whether administrative accountability can survive beyond a KPK press conference, and whether the state can finally guarantee that bureaucratic authority over the nation's land cannot be bought.

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