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

February 4, 2026

Beef Since Jan. 20, the House of Representatives has been gathering input from academics and civil society groups regarding the proposed revision of the 2017 General Elections Law, formally submitted on Nov. 19, 2024. A central pillar of these discussions is the adoption of a "codification" approach, specifically, the consolidation of disparate election-related regulations into a single, unified political law package.

This move toward codification is not merely a technical preference but a strategic policy direction outlined in the 2025–2045 National Long-Term Development Plan (RPJPN). The plan envisions strengthening democratic development by integrating the General Elections Law, the Regional Elections Law and the Political Parties Law into a cohesive framework.

The constitutional mandate for this integrated approach was further solidified by Constitutional Court ruling No. 135/2024, delivered on June 26, 2025. In its decision, the court mandated that elections be conducted in two distinct stages. The first involves a national election to elect members of the House, the Regional Representatives Council (DPD), and the president and vice president. The second stage, following a gap of roughly two to two-and-a-half years, consists of local elections for Regional Legislative Council (DPRD) members and regional heads. Crucially, the court affirmed that regional elections are an inseparable part of the broader electoral legal regime.

Consequently, deliberations on the election bill and the regional elections bill should ideally proceed in tandem. While both bills are listed in the medium-term National Legislation Program (Prolegnas), only the election bill was included in this year’s legislative priority list. The House has justified its decision to prioritize the General Elections Law while postponing the Regional Elections Law by citing procedural constraints and its current legislative agenda. Essentially, the House has chosen to adhere to a rigid framework, focusing on one bill at a time rather than addressing the system as a whole.

This piecemeal strategy has drawn criticism from experts who argue that codification must be discussed simultaneously. They contend that isolated reforms risk producing unsynchronized changes, potentially creating new friction between institutional design and actual political practice. Beyond the architecture of the law, substantive issues like the legislative threshold have come under intense scrutiny. The goal is to strike a delicate balance: safeguarding political representation while simplifying the party system to ensure effective governance.

As the legislative threshold has fluctuated across election cycles, the volume of "wasted votes", ballots cast for parties that fail to enter the legislature, has become a critical metric. This issue is paramount, as every vote that fails to translate into a seat represents more than just a political cost; it creates a deficit in the administrative legitimacy of the entire electoral process.

An analysis of trends across the past four elections suggests that the relationship between the threshold level and wasted votes is not linear. In the 2009 election, for instance, a 2.5 percent threshold resulted in a staggering 19.05 million wasted votes, or 18.3 percent of all valid ballots. That race featured 38 political parties, only nine of which secured seats. By 2014, when the threshold was raised to 3.5 percent, the number of wasted votes dropped sharply to 2.96 million, or 2.4 percent. This coincided with a decline in participating parties to 12, with 10 winning representation.

However, in the two most recent elections, which applied a 4 percent threshold, wasted votes rose again, reaching 9.7 percent in 2019 and 11.4 percent in 2024. During this period, the composition of the legislature remained largely stagnant. These findings indicate that the threshold is not the only factor at play. Party fragmentation, pre-election coalition patterns and voter behavior all dictate whether a citizen's choice actually results in representation.

Lawmakers must therefore distinguish between systemic flaws that require legal revision and problems driven by the conduct of political elites. Issues like vote buying often stem from the strategic incentives of political actors rather than legal loopholes alone. Furthermore, political education for the public remains dangerously narrow, focusing on the mechanics of how to vote rather than the substance of why it matters.

Without a voter base that understands the weight of representation and the consequences of its choices, electoral reforms risk becoming mere procedural adjustments. The House’s approach to these revisions will serve as a definitive measure of its commitment to a substantive, rather than a superficial, democratic transformation.

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