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.
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President Prabowo Subianto's free nutritious meal program was conceived as a transformative social policy to improve child nutrition, strengthen human capital and demonstrate the state's ability to deliver tangible benefits to millions of Indonesians. It is also the policy most closely associated with his presidency. More than any other initiative, its success or failure will shape public perceptions of his administration.
Yet the growing wave of corruption scandals engulfing the National Nutrition Agency (BGN), the institution responsible for implementing the program, suggests the problem may run deeper than individual misconduct. Prosecutors have accused former senior BGN officials of using foundations connected to meal-production kitchens to obtain unlawful benefits, and of manipulating procurement through budget markups and other irregularities.
Recent arrests and investigations have transformed what initially appeared to be isolated allegations into a broader governance crisis. The most important question is no longer whether corruption occurred, but whether the program's design itself makes corruption unusually difficult to prevent.
The allegations against former BGN leaders illustrate this vulnerability precisely. Prosecutors allege that foundations operating nutrition fulfillment service units (SPPG) - the kitchens producing meals under the program - were used to generate illicit profits, while procurement was allegedly manipulated through inflated contracts and interference in purchasing decisions.
The significance lies not only in the money involved but in the fact that the alleged misconduct spans multiple levels of the program's operational structure. When irregularities appear simultaneously in kitchen management, foundation oversight, procurement planning and contract execution, it becomes hard to argue the problem is merely a few bad actors.
The deeper concern is that the program's governance architecture appears to blur the distinction between operators and overseers. The government has repeatedly emphasized that the program is subject to strict monitoring by major state institutions, including the Attorney General's Office (AGO), the National Police and the Indonesian Armed Forces (TNI). Yet institutions linked to these same organizations have also become involved in establishing, managing or supporting the kitchens that form the program's backbone.
The police, for example, have publicly participated in expanding free meals program kitchens, with law-enforcement and security institutions playing prominent roles in supporting implementation - even boasting about the quality of the kitchens they run. From a governance perspective, this creates a fundamental conflict of interest.
Effective anti-corruption systems depend on a clear separation between those who implement programs and those who monitor them. When institutions are simultaneously participants and supervisors, accountability mechanisms risk losing their effectiveness. Even if every actor behaves with integrity, the mere perception of compromised independence can undermine public confidence.
This is why simply replacing the BGN's leadership is unlikely to fix the underlying problem. The government has already carried out a reshuffle following mounting criticism, but management changes alone rarely solve structural governance failures.
New leaders inherit the same institutional incentives, the same procurement architecture and the same oversight weaknesses. If opportunities for conflicts of interest, opaque contracting and political influence remain embedded in the system, corruption risks will persist regardless of who holds senior positions. Focusing on individuals rather than institutions is politically understandable, but it risks obscuring the larger issue. Corruption flourishes not only because individuals break the rules but because systems are built in ways that make abuse easy, profitable and hard to detect.
Because the free meals program is Prabowo's signature policy, its reputation is inseparable from his own. Every new allegation becomes a test of presidential leadership. If the public comes to believe corruption is endemic to the program, criticism will not stay confined to BGN officials or contractors - it will increasingly target the administration that designed, promoted and defended the initiative. This risk is compounded by what many observers see as a reluctance by the president to fully acknowledge the structural nature of the problem.
Framing corruption scandals as isolated incidents despite mounting evidence of broader governance weaknesses can make a government appear more concerned with protecting a program's image than fixing its vulnerabilities - a perception that may ultimately cause more reputational damage than the scandals themselves.
The long-term sustainability of the free meals program depends not merely on prosecuting wrongdoers but on redesigning the system of oversight: independent audits, full transparency of contracts and kitchen operators, public disclosure of procurement decisions, parliamentary scrutiny and stronger civil-society monitoring. Above all, oversight institutions must be genuinely independent from the entities they supervise.
Without such reforms, the scandals will continue to erode confidence - not only in the free meals program, but in Prabowo's capacity and willingness to ensure accountability within his most important policy initiative.
