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
Indonesian Ambassador to Kazakhstan and Tajikistan Fadjroel Rachman paid an official visit to Dushanbe, Tajikistan and met with Tajikistan Prime Minister Qohir Rasulzoda on May 31, 2025.
During the meeting, Fadjroel expressed his gratitude for the Tajikistan government's plan to invest in aluminium processing in Indonesia, which is projected to reach an initial value of US$2 billion with the possibility of increasing according to industry needs.
In addition, he also discussed the plan to build an Indonesian palm oil manufacturing facility in Tajikistan, which is targeted to produce green products that will be marketed to neighboring countries such as Afghanistan, Uzbekistan, Kyrgyzstan, and the border region of China.
Fadjroel also reiterated the initiative for cooperation in renewable energy (renewables), especially hydroelectric power plants (HPPs), which had previously been discussed by then-President Joko "Jokowi" Widodo in his meeting with Prime Minister Rasulzoda at the 2024 World Water Forum in Bali Province, Indonesia.
"Indonesia sees a great opportunity to cooperate considering that Tajikistan has an advantage in terms of hydropower, with 90 percent of domestic electricity needs coming from HPPs and surplus energy exported to neighboring countries," Fadjroel noted.
One of the major projects currently being developed in Indonesia is the HPP on the Kayan River in North Kalimantan Province, which has a potential capacity of 13,000 megawatts (MW) and is designed to support the energy needs of the Nusantara Capital City (IKN) as a smart and green city. In addition, President Jokowi has also opened up investment opportunities in Papua, which has a 24,000 MW hydropower potential from the Mamberamo River.
Fadjroel emphasized that this increased cooperation is a concrete form of the implementation of President Prabowo Subianto's vision, namely encouraging downstream industry development and industrialization to increase the value of domestic products.
Moreover, he welcomed the presence of Daya Anagata Nusantara Investment Management Agency (Danantara) Investment Director Hernando Wahyono in Tajikistan, and invited him to explore opportunities for cooperation with Kazakhstan's sovereign wealth fund (SWF) Samruk-Kazyna, which manages assets worth US$81 billion compared to the Indonesian SWF's assets of around US$1 trillion.
Rasulzoda and Tajikistan Foreign Minister Sirojiddin Muhriddin gave their appreciation for the three decades of diplomatic relations between Indonesia and Tajikistan. Muhriddin also expressed his gratitude for the holding of Indonesia's first diplomatic reception in Dushanbe with the theme "Wonderful Indonesia" on Nov. 1, 2024, which was attended by various foreign representatives and Tajik government officials.
He also highlighted the importance of cooperation in the field of education, with more than 300 Tajik students having received scholarships to Indonesia.
During his visit, Fadjroel also conveyed the plan for the arrival of the Indonesian Foreign Minister Sugiono to Kazakhstan and Tajikistan in 2025 to strengthen political, economic, cultural, educational, and trade cooperation between both countries with Indonesia, as well as expand Indonesia's market access to the Central Asian, Eurasian, and Caucasian regions. Cultural diplomacy is also an important focus, especially with the rapid development of pencak silat in Tajikistan and Kazakhstan.
The high-level international conference on glacier conservation in Dushanbe that Fadjroel visited for, which was opened by President Emomali Rahmon, was also attended by Indonesian Deputy Foreign Minister Arrmanatha Nasir and United Nations Special Envoy on Water Retno Marsudi on May 29–31, 2025.