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
The presence of the Indonesia Morowali Industrial Park (IMIP) Private Airport in Morowali Regency, Central Sulawesi, has sparked controversy after Defense Minister Sjafrie Sjamsoeddin asserted that the facility operates without proper state oversight. The issue appears to reflect a broader debate among state institutions, revealing friction between figures from the previous administration and the current government.
Sjafrie issued a stern warning regarding the private airport, emphasizing that the government would not allow the industrial zone to operate as a "state within a state".
He made this statement after attending the Joint Command Exercise of the Indonesian Military (TNI) at the IMIP area on Nov. 19–20. He stressed that the government intends to overhaul the management of the airport to ensure full state compliance.
President Prabowo Subianto has named Sjafrie the head of the Forest Area Regulation Task Force, whose mandate is to restore forest areas impacted by unauthorized mining and plantations. Any land occupied by companies operating illegally within forest zones is to be reclaimed by the state.
Amid this enforcement effort, IMIP has drawn scrutiny for its reputation as an exclusive enclave, often inaccessible even to residents. Green groups have also linked the industrial estate to the severe environmental degradation and health problems in the regency.
PT IMIP operates the industrial park, which spans approximately 2,000 hectares. The area hosts more than 50 companies, primarily ferronickel processors. Since its establishment in 2013, three entities have been listed as shareholders: Shanghai Decent Investment (Group), PT Sulawesi Mining Investment and PT Bintang Delapan Investama.
The IMIP Private Airport, developed to support this Chinese-backed industrial estate, has long been suspected of serving as a discreet entry point for foreign workers employed in Morowali's mining operations.
Technically, the airport received operational approval during the administration of president Joko "Jokowi" Widodo, alongside the rapid development of nickel-processing operations in the region.
Former coordinating maritime affairs and investment minister Luhut Binsar Pandjaitan defended the airport, stating its presence is reasonable given that Chinese investors have injected US$20 billion into the area. He stressed that the airport is designated solely for domestic flights and, therefore, does not require customs or immigration services under prevailing regulations.
The friction highlights a clash of titans: both Luhut and Sjafrie are former Army generals. Luhut is a known loyalist of former president Jokowi, while Sjafrie is closely aligned with Prabowo.
According to reports compiled by AirNav Indonesia and the Transportation Ministry, the IMIP Airport has never served international flights, and its operations remain compliant with existing regulations.
Notably, this report was co-prepared by the Indonesian Air Force, an institution under Sjafrie's supervision. This suggests that data contradicting the minister's concerns was available within his own sphere of influence prior to his public critique.
Deputy Transportation Minister Suntana has also affirmed that the airport is legally recognized and holds a valid operational permit.
However, the situation is complicated by a bureaucratic flip-flop. The Transportation Ministry temporarily granted the airport permission to operate direct international flights via Transportation Minister Decree No. KM 38/2025 on Aug. 8. This approval was revoked shortly after by Decree No. KM 55/2025 on Oct. 13, yet the revocation was only publicized recently after the controversy erupted.
This sequence has raised questions, if IMIP Private Airport was intended solely for domestic operations, why was it ever granted international flight authorization, however briefly?
The temporary permit drew sharp criticism from Central Sulawesi Governor Anwar Hafid, who argued that private airports should not be eligible for international status. He reiterated that Mutiara Sis Al Jufri Airport in Palu City is the province's only designated international gateway.
Anwar further noted that oversight authority for the IMIP airport lies exclusively with the Transportation Ministry, making it difficult for regional authorities to monitor activities on the ground.
Despite the confusion, the Transportation Ministry maintains that between Aug. 8 and Oct. 13, the IMIP Private Airport did not serve any international flights.
