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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After decades of relying on Dutch colonial regulations, Indonesia finally has its own Criminal Code (KUHP), which came into effect on Jan. 2. While the government claims the new KUHP reflects modern legal standards, critics say it retains significant gaps, particularly regarding potential conflict between law enforcement practices and human rights protections.
One article that has drawn intense scrutiny concerns insulting the president and vice president as well as the government and state agencies. Critics fear this provision could shield officials from legitimate criticism, resembling past offenses frequently used to silence opposition against the colonial regime. There is a palpable concern this could create a climate of fear among activists and journalists.
However, the drafters of the new KUHP, primarily the Law Ministry and House of Representatives Commission III, which oversees law enforcement, argue that Article 218 is a substantial improvement over Article 134 in the previous code. The latest KUHP reclassifies this as "delik aduan" (complaint-based offense) rather than an ordinary offense, meaning that legal proceedings can only be initiated upon a formal complaint from the affected party. The maximum penalty has also been reduced from six to three years.
Deputy Law Minister Edward "Eddy" O.S. Hiariej has emphasized that only specific officials could file complaints, such as the president, the vice president and the heads of major state institutions. He also clarified that the offense applied to insults directed at institutions, not individual officeholders.
Further, Article 218(2) explicitly states that criticisms, protests and views intended to evaluate government policies are legitimate forms of expression and may not be criminalized. In a similar vein, the new KUHP treats violations related to public demonstrations as "material offenses", meaning they are punishable only if they result in tangible harm, such as public disorder, rioting or property damage.
The new code also introduces major changes to capital punishment. The death penalty is no longer categorized as a primary punishment but as a sanction of last resort. Article 100 stipulates a 10-year probationary period for death sentences and if a convict demonstrates exemplary conduct during this time, their sentence may be commuted to life imprisonment or a maximum 20 years in prison.
Lawmakers acknowledge that the new KUHP does not formally abolish the death penalty, but say this mechanism moves the judicial system away from the death penalty as a form of criminal punishment.
On offenses related to the state ideology, the KUHP maintains that spreading communism or Marxism-Leninism is incompatible with Pancasila. However, Article 188(6) exempts academic activities such as teaching and research, provided they are not intended to promote these political doctrines and socioeconomic systems. Nevertheless, concerns remain that law enforcement could misinterpret the thin line between "teaching" and "disseminating" ideas.
House Commission III chair Habiburokhman, who hails from the ruling Gerindra Party, has defended the new KUHP. In particular, he has pointed out that concerns about the criminalization of journalists and academics are addressed by a requirement for proof of criminal intent (mens rea). He argues the new code has shifted focus from the content of the information spread to the consequences it generates, reinforcing the principle that criminal law should serve as ultimum remedium (last remedy) and not a primary tool of repression.
Legal scholar Romli Atmasasmita says the true test of the KUHP will be its implementation. The challenge lays in balancing legal certainty with social justice, ensuring that authorities translate the spirit of the new code into practice without neglecting the rights of vulnerable groups, including indigenous communities who have long been marginalized.
Amid the ongoing democratic decline, however, the new KUHP looks set to exacerbate the setback to Indonesian democracy.
