Indonesia's Green Energy Ascent


Indonesia's Green Energy Ascent

Indonesia's Green Energy Ascent: Powering Growth with Renewables

Indonesia, Southeast Asia's largest economy and a rising global player, faces a crucial energy crossroads. 

With a growing population and booming industries, its demand for electricity is skyrocketing. Yet, its reliance on fossil fuels poses environmental and economic challenges. The answer lies in a bold transition: harnessing the immense potential of green energy to illuminate lives, fuel the economy, and secure a sustainable future.

A Land Abundant in Renewables:

Indonesia boasts a diverse tapestry of renewable resources, waiting to be unleashed:

  • Solar Power: Bathed in sunshine for an average of 11 hours daily, Indonesia's solar potential is vast. The government estimates a technical potential of 450 GW, enough to meet the country's entire electricity demand several times over.
  • Hydropower: Indonesia's numerous rivers and archipelagic geography offer significant hydropower potential. Currently, it contributes around 60% of the country's renewable energy generation, with an installed capacity exceeding 12 GW.
  • Geothermal Power: The world's third-largest geothermal potential lies beneath Indonesia's volcanic soil. The current installed capacity of 2.4 GW represents only a fraction of the estimated 29 GW potential.
  • Biomass: Agricultural residues and forestry waste present a significant opportunity for biomass energy generation. The estimated potential is 32.6 GW, offering a sustainable and locally sourced energy source.
  • Wind Power: Although less explored than other resources, Indonesia has promising wind potential in mountainous regions and coastal areas, currently estimated at 7.2 GW.

Progress and Obstacles:

Despite its renewable riches, Indonesia's green energy journey faces hurdles:

  • Investment Gap: Significant investments are needed to translate potential into reality. Estimates suggest a requirement of $130 billion annually by 2030 for renewable energy infrastructure development.
  • Grid Infrastructure: Strengthening and expanding the transmission and distribution network is crucial to integrate large-scale renewable energy projects into the grid.
  • Policy and Regulatory Framework: Stable and supportive policies are essential to attract investments, incentivize renewable energy development, and ensure fair competition.
  • Technology and Expertise: Building local expertise in renewable energy technologies, project management, and financing is crucial for sustained growth.

Statistics Tell the Story:

  • Renewable Energy Share: While fossil fuels still dominate, the renewable energy share of Indonesia's installed power generation capacity has increased from 6.5% in 2010 to 11.2% in 2022.
  • Hydropower Leader: Hydropower remains the leading renewable energy source, accounting for roughly 55% of total renewable capacity.
  • Solar on the Rise: Solar PV is the fastest-growing renewable energy source, with installed capacity increasing from just 70 MW in 2015 to over 1.4 GW in 2022.
  • Geothermal Potential Untapped: Geothermal power, despite its potential, accounts for only 10% of Indonesia's renewable energy mix, highlighting the need for further development.

The Green Horizon:

Transitioning to green energy offers Indonesia a multitude of benefits:

  • Energy Security: Reducing reliance on imported fossil fuels enhances energy independence and security, mitigating price fluctuations and geopolitical risks.
  • Sustainable Growth: Green energy paves the way for a sustainable and climate-resilient future, attracting investments and supporting long-term economic development.
  • Environmental Protection: Embracing renewables combats climate change, preserves biodiversity, and ensures cleaner air and water for future generations.
  • Job Creation: The green energy sector creates new jobs in various areas, from installation and maintenance to technology development and project management.
Indonesia's Green Energy Ascent

Green Energy in Indonesia: A Statistical Deep Dive

Indonesia boasts immense potential for green energy, yet its current utilization remains below par. Here's a dive into the statistics, highlighting both progress and challenges:

Overall Potential:

  • Total Renewable Energy Potential: 409 GW (Gigawatts)**, including hydro, geothermal, solar, wind, and ocean energy.
  • Highest Potential Source: Solar, with an average generation potential of 4.8-5.1 kWh/m²/day (kilowatt-hours per square meter per day).
  • Global Ranking: Indonesia holds the largest geothermal reserves in the world (23.7 GW).

Current Status:

  • Installed Renewable Energy Capacity: 9.27 GW (as of 2023), representing only 2.3% of the total potential.
  • Renewable Energy Share in National Power Mix: Approximately 8.5% (2022).
  • Government Target: Achieve 23% renewable energy mix by 2025.

Progress & Achievements:

  • Recent Growth: Renewable energy capacity has doubled since 2017.
  • Leading Source: Geothermal contributes the most significant share (5.6 GW).
  • Emerging Players: Solar and wind power are demonstrating rapid growth.

Challenges & Obstacles:

  • Infrastructure Gaps: Transmission and distribution networks require significant improvements.
  • Policy Uncertainties: Fluctuations in regulations and incentives hinder investment.
  • Financing Constraints: Access to affordable capital remains a hurdle.
  • Community Engagement: Local communities' involvement and concerns need to be addressed.

Additional Data Points:

  • Investment Needs: Estimated US$200 billion required to achieve the 2025 target.
  • Carbon Emission Reduction: Shifting to renewables can significantly reduce greenhouse gas emissions.
  • Job Creation: Green energy transition offers potential for employment opportunities.

Indonesia's Green Energy Ascent

Green Energy in Indonesia: Statistical Table

CategoryData PointValueSource
Overall PotentialTotal Renewable Energy Potential409 GWKementerian ESDM
Highest Potential SourceSolar (4.8-5.1 kWh/m²/day)IRENA
Global Ranking (Geothermal)1st (23.7 GW)IRENA
Current StatusInstalled Renewable Energy Capacity9.27 GW (2023)Kementerian ESDM
Renewable Energy Share in National Power Mix8.5% (2022)Kementerian ESDM
Government Target for 202523% Renewable Energy MixKementerian ESDM
Progress & AchievementsRenewable Energy Capacity GrowthDoubled since 2017Kementerian ESDM
Leading SourceGeothermal (5.6 GW)Kementerian ESDM
Emerging PlayersSolar & Wind (Rapid Growth)Kementerian ESDM & East Ventures
Challenges & ObstaclesInfrastructure GapsSignificant improvements neededEast Ventures
Policy UncertaintiesHinder investmentEast Ventures & CNBC Indonesia
Financing ConstraintsLimited access to affordable capitalEast Ventures & IRENA
Community EngagementLack of involvement & concernsEast Ventures & IGGP
Additional Data PointsInvestment Needs for 2025 TargetUS$200 billionEast Ventures
Potential Carbon Emission ReductionSignificantIRENA & IGGP
Job Creation PotentialHighIGGP & CNBC Indonesia

Note: This table summarizes key data points. Refer to sources for detailed information and latest updates.


  • Kementerian Energi dan Sumber Daya Mineral (ESDM)
  • Indonesian Green Growth Program (IGGP)
  • International Renewable Energy Agency (IRENA)
  • East Ventures report: "The future is green: unlocking Indonesia's renewable energy potential"
  • CNBC Indonesia: "Punya Senjata Utama, RI Bisa Jadi Poros Green Energy Dunia"

A Beacon of Hope:

Indonesia's green energy journey is one of immense potential and transformative possibilities. With ambitious targets, increasing investments, and a growing focus on technological advancements, the country is poised to tap into its renewable riches and illuminate a brighter future. This transition will not only power homes and industries but also empower communities, protect the environment, and propel Indonesia towards a sustainable and prosperous future.