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
President Prabowo Subianto officially dismissed National Nutrition Agency (BGN) head Dadan Hindayana and his two deputies through a surprise announcement by the State Secretariat early last week, marking one of the most abrupt leadership changes of his administration. The move was soon followed by the Attorney General's Office (AGO) naming all three officials as corruption suspects in the program.
Dadan was replaced by former deputy Nanik Sudaryati Deyang. Meanwhile, deputy heads Lt. Gen. (ret.) Lodewyk Pusung and Insp. Gen. (ret.) Sony Sonjaya were replaced by Development Finance Comptroller (BPKP) deputy head Agustina Arumsari and Maj. Gen. Trenggono, vice president director of state-owned food company PT Agrinas Pangan Nusantara.
The removal of Dadan and his deputies represents one of the most significant personnel changes since the agency was established. Neither the Palace nor BGN initially provided a detailed explanation for the leadership transition. Shortly after the announcement, however, AGO investigators searched BGN's offices before arresting the three former leaders.
According to the AGO, the three suspects allegedly manipulated the verification process on the BGN partner portal to ensure that foundations selected as partners for the Nutrition Fulfillment Service Units (SPPG) were linked to BGN officials or employees. These foundations reportedly received incentives worth billions of rupiah daily and were allegedly affiliated with, and in some cases owned by, the suspects.
Yet the allegations of financial irregularities represent only one of the challenges facing the government's free meals program. Since its launch in January last year, the initiative has encountered a range of operational and structural problems stretching across the entire supply chain, from land acquisition and facility licensing to procurement, workforce development and food safety oversight.
Labor has emerged as a particularly sensitive issue. While the program is often framed as a food distribution initiative, its core objective is to improve nutritional outcomes among schoolchildren and other beneficiaries. Achieving that goal requires more than simply preparing and delivering meals; it demands personnel capable of managing food safety protocols, handling storage and logistics and ensuring that nutritional standards are consistently met.
Critics have argued that the rapid nationwide rollout of the program has at times outpaced the availability of trained workers and nutrition specialists needed to support such an ambitious undertaking. The consequences have been most visible in a series of food poisoning incidents that have occurred throughout the program's implementation.
The issue is closely tied to the program's quota-driven implementation model. Success has frequently been measured by the number of meals distributed each day, creating strong incentives for officials and operators to maximize output. Critics contend that such targets, while effective at accelerating expansion, can inadvertently encourage shortcuts in compliance procedures when administrative processes are perceived as obstacles to meeting delivery goals.
Whether the leadership change will be sufficient to address these problems remains an open question. While Dadan's removal may signal the government's willingness to respond to allegations of misconduct and growing public criticism, many of the challenges facing the free meals program are structural.
The alleged irregularities identified by the AGO did not emerge in a vacuum. They occurred within a program that has been under constant pressure to expand rapidly, establish new kitchens, increase meal production and broaden beneficiary coverage across the archipelago. Such conditions can strain oversight mechanisms, particularly when administrative capacity struggles to keep pace with the program's growth.
