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.
Latest News
The Chromebook procurement case has become one of Indonesia's highest-profile corruption prosecutions, sparking intense debate over whether it represents a straightforward anti-corruption effort or something far more consequential.
Nine months after the legal process began, and with the court finally delivering its verdict, the case has evolved far beyond a routine procurement dispute. Instead, it has become a litmus test for the Indonesian justice system to distinguish between policy misjudgment, abuse of authority and criminal corruption.
On June 30, the Jakarta Corruption Court sentenced former education minister Nadiem Anwar Makarim to 10 years in prison, imposed a Rp 1 billion (US$55,700) fine and ordered him to pay Rp 809 billion in restitution. Nadiem was given one month to pay the restitution, failing which he will serve an additional five years in prison.
The bench found Nadiem guilty of abusing his authority in the procurement of more than 1 million Chromebook laptops between 2020 and 2022, when Indonesia and the world were hit hard by COVID-19 pandemic that forced schools to avoid in-class learning. According to the ruling, the then-education ministry altered procurement specifications in a way that effectively favored Chromebooks, resulting in Rp 1.57 trillion in state losses.
The court also concluded that the program failed to achieve its intended purpose because many schools, particularly those in areas with poor internet connectivity, were unable to use the devices effectively.
The verdict marked the culmination of a legal process that began on Sept. 4, 2025, when the Attorney General's Office (AGO) named Nadiem a graft suspect. Prosecutors maintained that internal technical assessments had found Windows-based laptops to be more suitable for Indonesian schools, yet those recommendations were allegedly set aside in favor of ChromeOS. They had initially sought 18 years' imprisonment, a Rp 1 billion fine and Rp 5.6 trillion in restitution.
Yet, the sentence itself is arguably not the most significant outcome of the case. More striking is how public opinion evolved throughout the proceedings. Unlike most high-profile corruption trials, where public frustration is typically directed at judges for handing down lenient sentences, the Nadiem case generated an altogether different response. Even before the verdict, much of the public debate had shifted from how severely he should be punished to whether the prosecution had convincingly demonstrated that a controversial policy decision amounted to criminal corruption.
Unlike conventional corruption cases involving bribery or personal enrichment, the Chromebook case revolved around a policy decision whose criminality depended on proving abuse of authority and corrupt intent. As the trial progressed, public attention increasingly focused not on whether the procurement had failed logistically, but on whether prosecutors had successfully demonstrated that the legal threshold for corruption had been met.
The first turning point came when Nadiem challenged his suspect designation through a pretrial motion. Although the court ultimately rejected the application, the proceedings attracted unusual attention after 12 prominent legal figures submitted amicus curiae briefs. Among them were former attorney general Marzuki Darusman and former Corruption Eradication Commission (KPK) commissioner Amien Sunaryadi.
The second turning point unfolded during the trial itself. As prosecutors and defense lawyers presented competing expert testimony and documentary evidence, public attention increasingly shifted to the strength of the prosecution's case. The defense consistently argued that the Chromebook program followed prevailing procurement procedures and generated cost efficiencies. While the court ultimately rejected those arguments, the proceedings exposed genuine disagreement over whether the evidence established criminal intent or merely demonstrated shortcomings in policy implementation.
The final turning point came with the verdict itself. The decision was not unanimous. Judge Andi Saputra issued a dissenting opinion, stating that he found no convincing evidence that Nadiem deliberately sought to benefit Google or acted with corrupt intent. In his view, the prosecution had failed to establish the essential criminal elements required under Indonesia's anti-corruption laws and Nadiem should therefore have been acquitted.
Questions over the proceedings were further fueled by what many viewed as an unusual courtroom process. After reading the verdict, the panel of judges immediately adjourned the hearing without giving the defense the customary opportunity to formally state their position on the ruling.
Leaving the courtroom in tears, Nadiem questioned whether justice had truly been served, describing parts of the verdict as conclusions that "didn't make any sense." Referring to the fine and restitution, he argued that it would be impossible to pay the amount within one month, despite the judges being fully aware of his publicly declared assets. Nadiem later confirmed that he and his legal team would immediately challenge the verdict.
Regardless of how the appeal unfolds, the Chromebook saga has become more than a corruption prosecution; it has morphed into a decisive test of legal certainty, judicial process and the threshold for holding public officials criminally liable for policy decisions.
