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

April 20, 2026

It is hard to conceive of a national political landscape without constant maneuvering among political parties, trying to shape its direction. Recent speculation over a potential unification of the NasDem Party and Gerindra Party has brought a recurring question to the forefront: Do parties function as institutional channels of representation, or have they become mere instruments of elite bargaining?

The issue escalated into a controversy on April 14, when hundreds of NasDem Party supporters rallied outside Tempomagazine’s office in West Jakarta. They had gathered to protest a cover story featuring party chairman Surya Paloh, which alluded to a possible merger between NasDem and President Prabowo Subianto’s Gerindra Party. NasDem swiftly rejected this characterization, insisting that the discussions concerned the formation of a “political bloc”: a looser yet potentially more durable configuration of power compared to a “merger”.

The discourse had gained traction following reports of a closed-door meeting in mid-February between the two political bigwigs at Prabowo’s private residence in Hambalang village, West Java. Gerindra executive chairman Sufmi Dasco Ahmad confirmed the meeting took place, but insider accounts suggested their discussion was far from informal, reportedly covering a proposal to raise the parliamentary threshold from 4 percent to 8 percent. According to these sources, the pair also discussed Surya’s stalled business ventures, specifically the Indonesia 1 twin towers project in Central Jakarta.

At the center of their meeting, however, was a political agenda: formalizing deeper cooperation that could evolve into a more consolidated arrangement. In fact, NasDem and Gerindra share a similar historical lineage: both were founded in the wake of post-reform internal fractures in the Golkar Party.

From a political economy perspective, these discussion areas are not incidental. They reflect a convergence of electoral strategy, regulatory engineering and economic interests, a pattern that has long characterized Indonesia’s party system.

At first glance, NasDem’s openness to forming a stronger political bloc appears paradoxical, as its electoral performance indicates increasing stability rather than a decline. Since its establishment in 2011, the party has demonstrated consistent growth: NasDem secured 6.68 percent (35 seats) of the vote in the 2014 election, increased its share to 9.05 percent (59 seats) in 2019, and gained 9.66 percent (69 seats) in 2024. Among mid-tier parties, this trajectory positions NasDem as one of the most resilient players.

NasDem also has significantly outperformed its peers. The Democratic Party, for instance, has experienced a steady decline since its 2009 peak, with its vote share falling to 7.43 percent in the last election. Meanwhile, the United Development Party (PPP), an Islamic outfit that recorded a comparable, albeit slightly higher, share of the votes in 2014, has since lost all seats in the House.

However, electoral strength does not automatically translate into political leverage, and both internal and external pressures have intensified. Several senior NasDem figures, including Ahmad Ali, Bestari Barus and Rusdi Masse Mappasessu, recently left the party to join the Indonesian Solidarity Party (PSI). Led by Kaesang Pangarep, the younger son of former president Joko “Jokowi” Widodo, the PSI reflects the increasing attraction of parties closely aligned with the executive.

NasDem’s long-standing association with Jokowi further complicates its positioning. After supporting Jokowi over two terms, the party endorsed Anies Baswedan in the 2024 presidential election, in opposition to the Prabowo-Gibran ticket. Reports linking this shift to state-owned banks’ withdrawing support for Surya’s Indonesia 1 project illustrate how political alignment can intersect with business ventures, especially with negative impacts for the latter.

Simultaneously, communication missteps have affected the party’s public image. Statements by NasDem lawmakers Ahmad Sahroni and Nafa Urbach were widely criticized for their apparent dismissiveness toward public concerns, intensifying scrutiny of the party’s messaging and responsiveness. The two were among the several lawmakers blamed for triggering the mass protests in August last year and were suspended for several months.

Taken together, these developments suggest that Prabowo and Surya’s discussion around a potential unification, whether “merger” or “political bloc”, is less about electoral survival and more about strategic repositioning within a changing power configuration.

The proposal to increase the legislative threshold reinforces this interpretation. Surya has advocated for raising it to 7 percent, arguing this would streamline the legislative process. However, because this figure closely mirrors NasDem’s average performance, the proposal appears to be based on careful political calculation rather than purely on institutional reform.

NasDem’s current developments therefore reflect a broader pattern in national politics: Maneuvering is rarely about ideological alignment, but rather about recalibrating access to power. Whether framed as a coupling or cooperation, they illustrate how parties continue to operate at the intersection of electoral strategy, elite negotiation and institutional design.

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