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
Former president Joko "Jokowi" Widodo is struggling to maintain his political clout in Indonesia. The prolonged controversy surrounding his academic certificate has eroded his credibility, while his clan, once expected to carry on his political legacy, has sought every path to establish meaningful influence. Instead, many of Jokowi's close allies have become entangled in legal troubles, and his sway within President Prabowo Subianto's administration is steadily fading.
The Jakarta Police recently scheduled questioning for three suspects, Roy Suryo, Rismon Hasiholan Sianipar and Tifauziah Tyassuma, in the defamation case related to allegations of Jokowi's forged diploma. In total, eight individuals have been charged under accusations of defamation, incitement and slander.
Mahfud MD, Jokowi's former Coordinating Political, Legal and Security Affairs Minister, stated that the court should not convict Roy and company before first determining the authenticity of Jokowi's diploma.
Meanwhile, Jokowi's eldest son, Vice President Gibran Rakabuming Raka, once seen as his political heir, has seen his role diminish. His influence within the cabinet has been explicitly curtailed by President Prabowo, who prefers instead to rely on figures from his Great Indonesia Movement (Gerindra) Party and the Indonesian Military (TNI).
Similarly, the Indonesian Solidarity Party (PSI), led by Jokowi's youngest son, Kaesang Pangarep, has yet to clarify Jokowi's formal role despite rumors that he would chair its advisory board. The relationship between PSI and Jokowi has shown little sign of mutual benefit, particularly since the party holds no seats in the House of Representatives.
Jokowi's son-in-law, North Sumatra Governor Bobby Nasution, also faces legal troubles. He has been linked to a corruption case involving his close ally, Topan Obaja Putra Ginting, the head of the province's Public Works and Housing Agency.
The case drew further attention after the house of Judge Khamozaro Waruwu, who presides over the corruption trial, caught fire on Nov. 4, destroying crucial documents and valuables.
From the debris, Tempo reportedly found remnants resembling court documents and a business card belonging to a retired official from the Public Works Ministry and an expert witness at the National Public Procurement Agency (LKPP), identified by the initials RH.
Topan was arrested by the Corruption Eradication Commission (KPK) in Medan on June 28 for allegedly receiving a promised fee of Rp 8 billion (US$478,271) from a private contractor that won a Rp 231.8 billion road construction project in North Sumatra.
The KPK is awaiting the outcome of the Medan Corruption Court's trial before summoning Bobby for questioning. Prosecutors will submit their report to the KPK once the verdicts against the five defendants in the case become legally binding.
This is not the only legal issue shadowing Bobby. He was previously implicated in an alleged nickel smuggling scheme to China involving 5.3 million tonnes of ore, which reportedly caused state losses amounting to hundreds of trillions of rupiah. Coordinating Economic Minister Airlangga Hartarto was also named in the same case.
In 2024, Bobby's name surfaced in connection with a bribery and gratuity case connected to former North Maluku governor Abdul Gani Kasuba, who died in March of this year.
Jokowi's weakening influence extends beyond his family. ProJo, the volunteer organization that once stood as his strongest political support base, is now at a crossroads.
After speculation that it might evolve into a political party, ProJo chairman Budi Arie Setiadi, who served as Cooperative Minister in the Prabowo government for less than 11 months, has seen his political standing wane. His attempt to join Gerindra was rejected by several regional party branches, including the Surakarta chapter, a key base of Jokowi's support.
They argued that Budi Arie was merely seeking political protection from an online gambling scandal during his tenure at the Communication and Informatics Ministry in the final year of Jokowi's presidency.
Local Gerindra representatives also objected, fearing his entry could disrupt the party's established structure. Some political observers claim that Budi Arie's move was orchestrated by Jokowi himself.
Following Budi Arie's dismissal in September, several figures closely associated with Jokowi's administration were gradually dropped from Prabowo's government lineup, including Sri Mulyani, Dito Ariotedjo and Budi Gunawan.
Luhut Binsar Pandjaitan, once Jokowi's most trusted aide with extensive authority, has been relegated to a largely ceremonial role at the powerless National Economic Council.
The remnants of Jokowi's influence now lie mainly in the police and military leadership, whose terms will extend until their eventual retirement.
Meanwhile, many of Jokowi's flagship initiatives that were expected to be continued under President Prabowo have either been scaled back or left uncertain. The Nusantara Capital City project has seen significant budget cuts and unclear timelines, while the Jakarta–Bandung high-speed rail project faces potential legal issues and is increasingly viewed as a financial burden on the state.
A year after stepping down, Jokowi finds it difficult to remain relevant as his political legacies are being dismantled by legal issues or political competition.
