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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.
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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.
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Imagine a corrupt official who has stolen billions of rupiah from state coffers. Under a proposal floated by President Prabowo Subianto , that official could walk free, no conviction, no prison, simply by handing the money back. It sounds like restitution; critics say it looks a lot like a pardon with a price tag. The proposal, outlined in Prabowo's Aug. 14 State of the Nation Address, would offer amnesty to corruptors who return stolen state funds. It has reignited a debate that cuts to the heart of his presidency: Is Indonesia's war on corruption for real, or is it starting to look negotiable?
The plan was framed as pragmatic: recover the money first, worry about punishment later. But it raises an uncomfortable question. If corrupt officials can buy their way out of consequences by returning even part of what they stole, what does that say about the government's actual commitment to accountability?
The stakes are high precisely because Prabowo built his political brand on the opposite promise. He came to office vowing an uncompromising fight against graft, calling corruption one of Indonesia's greatest obstacles to prosperity and warning state officials to clean up their act or face consequences. But rhetoric and policy are not always the same thing.
Forgiving corruptors in exchange for asset restitution marks a real departure from a long-standing principle: that corruption is a punishable crime, regardless of whether the money is eventually returned. Indonesia Corruption Watch (ICW) has pointed out that the Corruption Law explicitly says returning state losses does not erase criminal liability.
Critics warn the proposal risks sending a dangerous signal: that corruption could become a crime that perpetrators can simply pay their way out of rather than one with unavoidable legal consequences.
Defenders counter that recovering stolen assets should be the priority. Returning trillions of rupiah to state coffers, they argue, may benefit the public more than locking up offenders. But that argument invites its own follow-up question: If asset recovery really is the priority, why has the government shown so little urgency in advancing the long-stalled asset forfeiture bill (RUU Perampasan Aset), a reform that many anticorruption experts consider one of the most important tools Indonesia could adopt?
Enacting that bill would strengthen the state's power to seize illicitly acquired wealth.
For years, activists have argued that corrupt actors should lose not just their freedom but the financial fruits of their crimes. Yet the legislation remains stuck. While the delay can't be pinned on the President alone, critics note that a leader's true priorities tend to show up in what they spend political capital on, and the absence of a genuine push for this bill undermines the claim that asset recovery sits at the center of Prabowo’s anticorruption strategy.
Doubts about the President 's commitment extend beyond this one proposal. His administration has supported or approved clemency and amnesty measures for those convicted in high-profile corruption cases. ICW and Transparency International Indonesia have both warned that such interventions risk weakening the principle of equal treatment under the law and could create the impression that political considerations are shaping judicial outcomes.
Just as telling is the limited attention paid to strengthening anticorruption institutions. Since the 2019 revision of the KPK Law, many experts argue the country's premier antigraft agency has been weakened significantly. A president genuinely committed to structural reform might be expected to prioritize restoring the KPK's independence and authority. So far, though, there's little sign that's happening. Observers increasingly note that the government talks often about corruption but shows far less enthusiasm for rebuilding the institutions needed to fight it systematically.
To be fair, anticorruption law enforcement hasn't disappeared under Prabowo. Major investigations have continued, including high-profile cases involving senior executives at state-owned enterprises, such as Pertamina. Supporters cite these cases as proof the government is serious and willing to pursue powerful figures. But anticorruption success can't be measured by case count alone. Individual prosecutions matter, but lasting progress depends on strong institutions, robust laws and credible deterrents. And on that front, the concerns keep piling up.
Taken together, the proposed amnesty for restitution, the stalled asset forfeiture bill, the use of clemency in corruption cases and the lack of momentum on KPK reform form a pattern that's hard to dismiss as coincidence. No single one of these developments proves Prabowo has abandoned the fight against corruption. But together, they raise a legitimate question: Is his administration pursuing deep structural reform or merely practicing selective enforcement?
The issue isn't whether the President opposes corruption; his public statements leave little doubt that he does. The more consequential question is whether he's willing to pursue the institutional and legal reforms needed to eradicate it, even when doing so threatens powerful interests. Until there's stronger evidence of that, doubts about the depth of his commitment aren't going away.
