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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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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Indonesian popular culture is gaining global traction, with Joko Anwar’s Ghost in the Cell (2026) set to screen in 86 countries and music artists like NIKI, Anggun, Rossa and Voice of Baceprot touring internationally. Yet these successes remain largely driven by individual efforts, leaving the country’s creative industries with a fragmented and under-institutionalized global presence, highlighting the need to position the sector as a strategic industry.
Unlike South Korea, which has treated its culture as a strategic pillar of its creative economy as early as the 1990s, Indonesia is yet to place the sector at the center of its development strategy. Instead, the national economy remains heavily reliant on natural resource, particularly coal and palm oil as well as manufacturing industries. Without a well-defined policy framework and stronger government support, Indonesia risks underutilizing its creative industries, leaving their potential unfulfilled.
In 1994, South Korean president Kim Young-sam reportedly watched the Hollywood hit Jurassic Park and came away with a striking realization: the movie generated revenue equivalent to exporting 1.5 million cars, more than twice that country’s annual automobile exports at the time. That moment helped shift the policy mindset to position culture not merely as art but as a high-value industry.
Today, the Korean Wave is a global phenomenon and a core pillar of South Korea’s economic strategy. Its impact extends far beyond screens and stages and by 2025, cultural exports including music, games and film, alongside related sectors such as K-beauty and K-food, had reached an estimated US$37.94 billion, making culture the country’s fourth-largest export sector.
In Indonesia, the spillover effects of the creative economy are already visible, particularly in film. One notable example is Laskar Pelangi (The Rainbow Troops, 2008), which significantly boosted local tourism for Belitung Island with a surge in visitor arrivals following its release, contributing to a 20 percent increase in hotel occupancy between 2008 until 2009.
More recently, Ngeri-Ngeri Sedap (Missing Home, 2022) showcased the landscapes of North Sumatra, particularly around Lake Toba, while highlighting Batak culture. The film received strong institutional backing, including promotion by former tourism minister Sandiaga Uno. Although official data remain limited, early indications suggest a similar boost in tourism following its release in 2022. These cases demonstrate that, much like South Korea, Indonesia’s cultural products can generate meaningful economic spillovers.
Investment in the creative economy is gaining momentum and reached Rp 183.01 trillion ($10.68 billion) last year, or 9.48 percent of total investment. This reflects growing interest from both domestic and foreign investors, particularly in digital subsectors such as mobile applications and content development. Further, the sector is projected to absorb 27.4 million workers, underscoring its expanding role in job creation. Indonesia’s creative capacity, therefore, is no longer in question.
However, despite its vast potential, the culture sector remains constrained by structural weaknesses, including unclear definitions, limited skills, inadequate infrastructure and weak enforcement of intellectual property rights. The absence of a reliable, integrated data system also complicates policymaking and deters investment, as both government and investors lack the tools to assess either performance or risks.
While other countries have strategically leveraged creative industries, particularly the film industry, to drive tourism, exports and broader economic growth, Indonesia still lacks a coherent, long-term national strategy. Without a clear road map supported by stronger institutions, better data governance and targeted policy interventions, the creative economy will remain fragmented, unable to scale into a competitive and sustainable engine of growth.
As one of the most populous and culturally diverse countries in the world, Indonesia’s creative economy holds significant untapped potential. In the digital era, Indonesians are not only consuming content but also increasingly creating music, film and digital products, which are rising in quality as they gain wider global relevance.
To move forward, the country must begin treating its creative economy not as a complementary sector but as a strategic pillar of national development. This requires more than rhetoric: It demands coordinated policies to strengthen data systems, improve intellectual property protection, expand funding access and invest in talent and infrastructure.
Equally important is a clear strategy for positioning Indonesia’s cultural exports in global markets. The success stories and demand growth are already evident. What remains is the political will to scale them. Without this, Indonesia risks remaining a consumer market for global content instead of emerging as a producer of value in the global creative economy.
