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

March 5, 2026

The import bribery case implicating three customs officials has entered a new phase with the discovery of several safe houses in Jakarta, where investigators found a stash of money amounting to billions of rupiah. The emergence of what appears to be a sophisticated bribery network not only further erodes institutional credibility but also raises a deeper question: Can corruption at the Customs Office truly be eradicated?

The Corruption Eradication Commission (KPK) uncovered four apartment units in North Jakarta and a house in Ciputat, South Tangerang, Banten, that were being used as safe houses. Investigators seized gold bars and cash totaling Rp 40.5 billion (US$2.45 million) in multiple currencies including rupiah, United States dollars, Singapore dollars and Japanese from these locations, as well as from the offices of logistics firm Blueray Cargo and suspects’ residences.

During a series of sting operations on Feb. 4 in Jakarta and Lampung, the KPK arrested 17 Customs Office employees. A day later, it named six suspects including three customs officials: Rizal, who served as the enforcement and investigation director from 2024 to January 2026; Sisprian Subiaksono, head of enforcement and investigative intelligence; and Orlando Hamonangan, head of the intelligence section.

The three other suspects were Blueray Cargo executives: owner John Field, import documentation head Andri and operations manager Dedy Kurniawan. John surrendered to the KPK on Feb. 7 after initially attempting to evade arrest during the sting operations.

This graft case extends beyond a conventional bribery scheme, as it involves deliberate manipulation of the customs risk management system. Under normal procedures, imported goods are assigned to either the green channel, for low-risk shipments with minimal inspection, or the red channel, for shipments requiring detailed scrutiny.

However, investigators reportedly found that Orlando had ordered an adjustment to the scanning system’s setting by fixing a 70 percent parameter, which enabled Blueray’s shipments to be routed through the green channel regardless of their customs classification, including prohibited and restricted goods (LARTAS). As a result, various textile products marked as LARTAS, including counterfeit bags, shoes and branded clothing, were allowed entry without proper inspection.

At the same time, Blueray allegedly falsified import documentation to understate shipping volume and thereby reduce duties to around Rp 40 million per container, while it charged clients Rp 200 million in import fees.

Given that the firm reportedly handled 1,500–2,000 containers per month, the illicit customs scheme between October 2025 and January 2026 incurred enormous potential losses to the state through systemic revenue leakage. In return, customs officials involved in the scheme allegedly received monthly bribes of around Rp 7 billion between December 2025 and February 2026.

Investigators have uncovered additional violations in Blueray’s corporate structure. The company reportedly established at least 20 affiliated entities as nominal importers to mask the identities of the true importers. This violated regulations prohibiting a single entity from acting as both freight forwarder and importer, since such an arrangement would significantly complicate traceability and enforcement.

The broader economic context amplifies the seriousness of the case. Indonesia’s textile industry has been under pressure from dumping practices, particularly by Chinese firms, amid global overcapacity and weakening demand. These combined pressures have led to factory closures and layoffs, including at major firms such as textile manufacturer PT Sri Rejeki Isman (Sritex).

While Customs and Excise Director General Djaka Budi Utama has yet to make a public statement on the matter, the KPK has indicated it may summon him for questioning related to the potential involvement of senior officials.

The reoccurrence of graft cases has prompted Finance Minister Purbaya Yudhi Sadewa to issue a stark warning: The Customs Office must undergo fundamental reform within a year or face a potential institutional freeze. Alternatively, Purbaya has floated a possibility of stripping the office of its responsibilities and appointing an external operator like Société Générale de Surveillance (SGS), reviving an arrangement implemented under former president Soeharto in 1985–1997.

Given the apparent systemic corruption at the Customs Office, reintroducing external oversight through a credible organization may warrant rigorous consideration. While not a panacea, such a move could disrupt entrenched networks, restore business confidence and safeguard state revenues.

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