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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For nearly four months wildfires have ravaged Indonesia, exposing acute, systemic failures in government response and law enforcement. While the ongoing dry spell has exacerbated the crisis, suspected corporate land clearing by burning points to a deliberate, recurring practice that authorities have repeatedly failed to halt.
The scale of the destruction is alarming. At an emergency meeting with President Prabowo Subianto on Oct. 12, the National Disaster Mitigation Agency (BNPB) reported that 129,899.6 hectares of peatland had burned across six priority provinces: Central Kalimantan, South Kalimantan, West Kalimantan, South Sumatra, Jambi and Riau. Although officials claimed most blazes had been extinguished, active firefighting continued across another 639.2 ha. Furthermore, these figures omitted fires that had been burning unchecked across Papua for weeks.
Prabowo’s downplaying of the crisis, insisting that only a small area was still ablaze, contradicts the humanitarian toll on the ground. By Oct. 13, cases of respiratory infections linked to toxic haze had reached 283,270 across seven provinces.
Air quality measurements expose the depth of the public health emergency. On Oct. 15, the air quality index (AQI) in Pangkalan Bun, Central Kalimantan, spiked to a staggering 982, more than three times the minimum for the “hazardous” level, while Pontianak in West Kalimantan logged 280, near the upper range of the “very unhealthy” level. Even Jakarta, notorious for chronic pollution, recorded a far lower AQI of 176. Progress cannot be measured merely by hectares extinguished; it must be judged by the state's capacity to protect human lungs and prevent recurrent catastrophe.
The fallout has long breached national borders: Singapore recorded its highest PM2.5 readings of the year on Oct. 14, Timor-Leste shuttered classrooms for three days starting on Oct. 15, and Malaysia closed schools across several states as transboundary haze intensified. The crisis has evolved from an internal ecological disaster into a regional health and diplomatic liability.
Public patience has run out. Grassroots outrage has surged across social media, where campaigns like “Our Forests Are Still Burning” have amassed millions of shares. Yet the backlash targets not only environmental devastation but also presidential priorities. While millions choke on toxic smoke, President Prabowo has maintained routine appearances at soccer events and taken foreign trips. Whatever diplomatic or political justifications these engagements carry, the optical disconnect is glaring: a presidency conducting business as usual while citizens gasp for clean air.
The fury has migrated to the streets. On Oct. 13, student protesters picketed the South Sumatra Police headquarters in Palembang, demanding criminal accountability for corporate fire starters. The previous week on Oct. 5, they had rallied outside the South Sumatra Governor’s office demanding transparency in wildfire management expenditure, real enforcement against offending agribusinesses and institutional accountability.
El Nino alone cannot serve as an alibi. In South Sumatra's Ogan Komering Ilir regency, firefighters from the Forestry Ministry’s Manggala Agni brigade uncovered burned plots in Pedamaran district that had been leveled by heavy machinery and prepared for planting, while neighboring oil palm concessions remained untouched. The site bore all the hallmarks of intentional arson to facilitate cheap plantation expansion.
The state’s diplomatic posturing has also invited skepticism. After Japan deployed Self-Defense Forces helicopters to help fight blazes in Kalimantan throughout September, Indonesia abruptly terminated the mission on Sept. 29, saying it could handle the rest domestically. Neighbors Malaysia and Singapore have likewise offered assistance.
The national emergency apparatus is undeniably active: Tens of thousands of personnel are deployed alongside heavy-duty pumps and deep well rigs. However, self-reliance is admirable only when backed by results. When toxic haze crosses international boundaries, national pride must yield to regional responsibility.
Subsurface peat fires are notoriously obstinate, smoldering underground for weeks before flaring anew. But precisely because these conditions are well understood, prevention must take precedence. Indonesia has grappled with this disaster cycle for decades; nothing about this year’s crisis was unpredictable.
The fundamental flaw remains the chasm between reactive mobilization and structural prevention. Credible governance demands year-round surveillance, early intervention, firm prosecution of corporate culprits and total transparency in burned area data. When civil society groups document burned acreage far exceeding official reports, public trust erodes.
Prabowo’s rhetorical calls for prevention will mean nothing if enforcement lapses persist before the next dry season. The government must blacklist culpable firms, protect peatlands and prosecute offenders before seasonal haze hardens into an annual public health crisis. These wildfires are a test of whether Indonesia can enforce its own laws, protect its populace and honor its international commitments. Quelling the flames is not enough; the state must end the culture of impunity that ignites them.
