Renewable energy in Indonesia - statistics & facts
For decades, coal has been the primary fuel for most of Indonesia’s power plants. Today, the country is facing the big challenge of reaching the government’s ambitious goal of achieving net-zero emissions by 2060. Indonesia is known to be rich in natural resources, thus holding significant potential for renewable energy sources such as hydropower, bioenergy, and geothermal. However, the transition to gradually shift away from fossil fuels remains a complex challenge. Renewable-based electricity generation in Indonesia has increased in the past years, but the share of coal in Indonesia’s electricity generation continued to exceed 60 percent, with no clear signs of declining.
While the path remains challenging, continued government efforts—such as enforcing renewable energy targets and policies, as well as attracting more investments to the sector—could keep Indonesia on the right track toward greener energy in the coming years.
The diverse sources of renewable energy in Indonesia
Hydropower is the leading source of renewable energy in Indonesia, contributing approximately seven percent to the country’s electricity mix. Bioenergy follows closely, with a share of around six percent. Moreover, Indonesia holds the world's second-largest geothermal capacity, although there is still much untapped potential. Despite the country's strategic location on the equator with stronger direct sunlight, Indonesia's solar energy capacity only reached around 574 megawatts in 2023, while coal power had nearly 90 times greater capacity. Compared to the capacity of solar energy in other Asia-Pacific countries, Indonesia is falling behind in development.What is hindering clean energy adoption in Indonesia?
Although Indonesia lies along the Ring of Fire, which offers substantial geothermal resources, development has been stagnant primarily due to financial constraints and environmental concerns. Establishing geothermal energy infrastructure requires high capital, while areas with geothermal reserves often overlap with protected forests. Additionally, over the years, Indonesia's main electricity provider, Perusahaan Listrik Negara (PLN), has heavily relied on subsidies from the government to maintain affordable electricity rates. This adds to the headwinds in transitioning to clean energy, as the cost of renewable power generation is considerably higher than coal. Nonetheless, Indonesia has seen a steady increase in renewable energy capacity over the past decade, indicating commitment and hope for a sustainable future.While the path remains challenging, continued government efforts—such as enforcing renewable energy targets and policies, as well as attracting more investments to the sector—could keep Indonesia on the right track toward greener energy in the coming years.
