This article needs to be updated. Please help update this to reflect recent events or newly available information. (December 2020)
Energy consumption by source, Indonesia

Development of CO2 emissions

In 2019, the total energy production in Indonesia is 450.79 Mtoe, with a total primary energy supply is 231.14 Mtoe and electricity final consumption is 263.32 TWh.[1] Energy use in Indonesia has been long dominated by fossil resources. Once a major oil exporter in the world and joined OPEC in 1962, the country has since become a net oil importer despite still joined OPEC until 2016, making it the only net oil importer member in the organization.[2] Indonesia is also the fourth-largest biggest coal producer and one of the biggest coal exporter in the world, with 24,910 million tons of proven coal reserves as of 2016, making it the 11th country with the most coal reserves in the world.[3][1] In addition, Indonesia has abundant renewable energy potential, reaching almost 417,8 gigawatt (GW) which consisted of solar, wind, hydro, geothermal energy, ocean current, and bioenergy, although only 2,5% have been utilized.[4][5] Furthermore, Indonesia along with Malaysia, have two-thirds of ASEAN's gas reserves with total annual gas production of more than 200 billion cubic meters in 2016.[6]

The Government of Indonesia has outlined several commitments to increase clean energy use and reduce greenhouse gas emissions, among others by issuing the National Energy General Plan (RUEN) in 2017 and joining the Paris Agreement. In the RUEN, Indonesia targets New and Renewable Energy to reach 23% of the total energy mix by 2025 and 31% by 2050.[7] The country also commits to reduce its greenhouse gas emissions by 29% by 2030 against a business-as-usual baseline scenario, and up to 41% by international support.[8]

Indonesia has several high-profile renewable projects, such as the wind farm 75 MW in Sidenreng Rappang Regency, another wind farm 72 MW in Jeneponto Regency, and Cirata Floating Solar Power Plant in West Java with a capacity of 145 MW which will become the largest Floating Solar Power Plant in Southeast Asia.[9]


Energy in Indonesia[10]
Primary energy
2004 217.6 2,024 3,001 973 104 336
2007 225.6 2,217 3,851 1,623 127 377
2008 228.3 2,311 4,035 1,714 134 385
2009 230.0 2,349 4,092 1,787 140 376
2010 239.9 2,417 4,436 2,007 154 411
2012 242.3 2,431 4,589 2,149 166 426
2012R 246.9 2,484 5,120 2,631 181 435
2013 250.0 2,485 5,350 2,858 198 425
Change 2004-10 10.2% 19.4% 48% 106% 48% 22%
Mtoe = 11.63 TWh

2012R = CO2 calculation criteria changed, numbers updated

According to the IEA, energy production increased 34% and export 76% from 2004 to 2008 in Indonesia. In 2017, Indonesia had 52,859 MW of installed electrical capacity, 36,892 MW of which were on the Java–Bali grid.[11] In 2022, Indonesia had an electrical capacity of 81.2 GW with a projected capacity of 85.1 GW for 2023.[12]

Energy by sources

Indonesia electricity production by source

Fossil fuel energy sources


This section needs to be updated. Please help update this article to reflect recent events or newly available information. (May 2020)

Indonesia has a lot of medium and low-quality thermal coal, and there are price caps on supplies for domestic power stations, which discourages other types of electricity generation.[13] At current rates of production, Indonesia's coal reserves are expected to last for over 80 years. In 2009 Indonesia was the world's second top coal exporter, sending coal to China, India, Japan, Italy and other countries. Kalimantan (Borneo) and South Sumatra are the centres of coal mining. In recent years, production in Indonesia has been rising rapidly, from just over 200 mill tons in 2007 to over 400 mill tons in 2013. In 2013, the chair of the Indonesian Coal Mining Association said the production in 2014 may reach 450 mill tons.[14]

The Indonesian coal industry is rather fragmented. Output is supplied by a few large producers and a large number of small firms. Large firms in the industry include the following:[15]

Coal production poses risks for deforestation in Kalimantan. According to one Greenpeace report, a coal plant in Indonesia has decreased the fishing catches and increased the respiratory-related diseases.[16] Indonesia vies with Australia and Russia for the position as the world's largest coal exporter. Due to the energy transition and political split between Russia and the West over Ukraine, Russia is increasingly orienting its exports towards Asia, providing stiffer competition for Indonesia.[17]


Indonesia used to be a net oil exporter.

Oil is a major sector in the Indonesian economy. During the 1980s, Indonesia was a significant oil-exporting country. Since 2000, domestic consumption has continued to rise while production has been falling, so in recent years Indonesia has begun importing increasing amounts of oil. Within Indonesia, there are considerable amounts of oil in Sumatra, Borneo, Java, and West Papua Province. There are said to be around 60 basins across the country, only 22 of which have been explored and exploited.[18] Main oil fields in Indonesia include the following:


Indonesia's gas balance

There is growing recognition in Indonesia that the gas sector has considerable development potential.[24] The Indonesian government is increasingly prioritizing investment in natural gas. However, in practice, investors, especially foreign investors, have been reluctant to invest because many of the problems that are holding back investment in the oil sector also affect investment in gas.

As of mid-2013, the main potential gas fields in Indonesia were believed to include the following:


There is potential for tight oil and shale gas in northern Sumatra and eastern Kalimantan.[37] There there is an estimated 46 trillion cu ft (1.3 trillion m3) of shale gas and 7.9 billion barrels (1.26×109 m3) of shale oil which could be recovered with existing technologies.[38] Pertamina has taken the lead in using hydraulic fracturing to explore for shale gas in northern Sumatra. Chevron Pacific Indonesia and NuEnergy Gas are also pioneers in using fracking in existing oil fields and in new exploration. Environmental concerns and a government-imposed cap on oil prices present barriers to full development of the substantial shale deposits in the country.[39] Sulawesi, Seram, Buru, Papua in eastern Indonesia have shales that were deposited in marine environments which may be more brittle and thus more suitable for fracking than the source rocks in western Indonesia which have higher clay content.[38]

Coal bed methane

With 453 trillion cu ft (12.8 trillion m3) of coal bed methane (CBM) reserve mainly in Kalimantan and Sumatra, Indonesia has potential to redraft its energy charts as United States with its shale gas. With low enthusiasm to develop CBM project, partly in relation to environmental concern regarding emissions of greenhouse gases and contamination of water in the extraction process, the government targeted 8.9 million cu ft (250 thousand m3) per day at standard pressure for 2015.[40]

Renewable energy sources

Indonesia renewable electricity production by source

Indonesia aims to get 23% and 31% of its energy from renewable sources by 2025 and 2050 respectively.[41] In 2020, renewables has a 11.2% share of the national energy mix, with hydro and geothermal power making up most of this.[42] Despite its renewable energy potential, Indonesia is struggling to reach its renewable target. The lack of adequate regulation supports to attract the private sector and the regulation inconsistency are often cited among the main reasons for the lack of progress. One policy requires private investors to transfer their projects to PLN (the sole electricity off-taker in the country) at the end of agreement periods, which, combined with the fact that the Minister for Energy and Mineral Resources sets the consumer price of energy, has led to concern about return on investment.

Another issue is related to financing, as to achieve the 23% renewable energy target, it has been estimated that Indonesia needs to invest US$154 billion. The state is unable to raise so much capital, while there is reluctance from both potential investors and lending banks to get involved.[43] There is also a critical challenge related to cost. Renewable energy projects is still require large up-front investment and as the electricity price has to be below the Region Generation Cost (BPP) (which is already low enough in some major areas), it renders projects economically unattractive. Indonesia also has large coal reserves and is one of the world's largest net exporters of coal, making it less urgent to develop renewable-based power plants compared to countries that depend on coal imports.[44]

The country has been recommended to remove subsidies for fossil fuels, establishe a ministry of renewable energy, improve grid management, mobilize domestic resources to support renewable energy, and facilitate entry for international investors.[45] Continued reliance on fossil fuels by Indonesia may leave its coal assets stranded and result in significant investments lost as renewable energy is rapidly becoming cost-efficient worldwide.[46]

In February 2020, it was announced that the People's Consultative Assembly is preparing its first renewable energy bill.[47]


An estimated 55% of Indonesia's population, 128 million people, primarily rely upon traditional biomass (mainly wood) for cooking.[48] Reliance on this source of energy has the disadvantage that poor people in rural areas have little alternative but to collect timber from forests, and often cut down trees, to collect wood for cooking.

A pilot project of Palm Oil Mill Effluent (POME) Power Generator with the capacity of 1 Megawatt has been inaugurated in September 2014.[49]


Jatiluhur Dam, Indonesia's first and largest dam, in Purwakarta Regency, West Java.

Indonesia has 75 GW of hydro potential, although only around 5 GW has been utilized.[42][50] Currently, only 34GW of Indonesia's total hydro potential can feasibly be utilized due to high development costs in certain areas.[51] Indonesia also set a target of 2 GW installed capacity in hydroelectricity, including 0.43 GW micro-hydro, by 2025.[52] Indonesia has a potential of around 459.91 MW for micro hydropower developments, with only 4.54% of it being currently exploited.[53]

Geothermal energy

Main article: Geothermal power in Indonesia

Indonesia uses some geothermal energy.[54] According to the Renewable Energy Policy Network's Renewables 2013 Global Status Report, Indonesia has the third largest installed generating capacity in the world. With 1.3 GW installed capacity, Indonesia trails only the United States (3.4 GW) and the Philippines (1.9 GW), ahead of Mexico (1.0 GW), Italy (0.9 GW), New Zealand (0.8 GW), Iceland (0.7 GW), and Japan (0.5 GW).[55] The current official policy is to encourage the increased use of geothermal energy for electricity production. Geothermal sites in Indonesia include the Wayang Windu Geothermal Power Station and the Kamojang plant, both in West Java.

The development of the sector has been proceeding rather more slowly than hoped. Expansion appears to be held up by a range of technical, economic, and policy issues which have attracted considerable comment in Indonesia. However, it has proved difficult to formulate policies to respond to the problems.[56][57][58]

Two new plants are slated to open in 2020, at Dieng Volcanic Complex in Central Java and at Mount Patuha in West Java.[59]

Wind power

Sidrap wind farm, Indonesia's first wind power plant, in Sidrap Regency, South Sulawesi.

On average, low wind speeds mean that for many locations there is limited scope for large-scale energy generation from wind in Indonesia. Only small (<10 kW) and medium (<100 kW) generators are feasible.[60] For Sumba Island in East Nusa Tengarra (NTT), according to NREL, three separate technical assessments have found that "Sumba’s wind resources could be strong enough to be economically viable, with the highest estimated wind speeds ranging from 6.5 m/s to 8.2 m/s on an annual average basis."[61] A very small amount of (off-grid) electricity is generated using wind power. For example, a small plant was established at Pandanmino, a small village on the south coast of Java in Bantul Regency, Yogyakarta Province, in 2011. However, it was established as an experimental plant and it is not clear whether funding for long-term maintenance will be available.[62]

In 2018, Indonesia installed its first wind farm, the 75 MW Sidrap, in Sidenreng Rappang Regency, South Sulawesi, which is the biggest wind farm in Southeast Asia.[63][64] In 2019, Indonesia installed another wind farm with a capacity of 72 MW, in Jeneponto Regency, South Sulawesi.[63]

Solar power

The Indonesian solar PV sector is relatively underdeveloped but has significant potential, up to 207 GW with utilization in the country is less than 1%.[65] However, a lack of consistent and supportive policies, the absence of attractive tariff and incentives, as well as concerns about on-grid readiness pose barriers to the rapid installation of solar power in Indonesia, including in rural areas.[66][45]

Tidal Power

With over 17,000 islands, Indonesia has great potential for tidal power development. The Alas Strait, a 50km stretch of ocean between Lombok and Sumbawa Island, alone could potentially yield 640 GWh of energy annually from tidal power.[67] As of 2023, despite evidence of great potential, no Indonesian tidal power facilities have been developed.

Use of energy

Transport sector

Much of the energy in Indonesia is used for domestic transportation. The dominance of private vehicles - mostly cars and motorbikes - in Indonesia has led to an enormous demand for fuel. Energy consumption in the transport sector is growing by about 4.5% every year. There is therefore an urgent need for policy reform and infrastructure investment to enhance the energy efficiency of transport, particularly in urban areas.[68]

There are large opportunities to reduce both the energy consumption from the transport sector, for example through the adoption of higher energy efficiency standards for private cars/motorbikes and expanding mass transit networks. Many of these measures would be more cost-effective than the current transport systems.[69] There is also scope to reduce the carbon intensity of transport energy, particularly through replacing diesel with biodiesel or through electrification. Both would require comprehensive supply chain analysis to ensure that the biofuels and power plants are not having wider environmental impacts such as deforestation or air pollution.[70]

Electricity sector

Access to electricity

Over 50% of households in 2011 had an electricity connection. An estimated 63 million people in 2011 did not have direct access to electricity.[71] However, by 2019, 98.9% of the population had access to electricity.[72]


The electricity sector, dominated by the state-owned electricity utility Perusahaan Listrik Negara, is another major consumer of primary energy.

Government policy

Ignasius Jonan, Indonesian Minister of Energy and Mineral Resources

Carbon tax

Carbon tax provisions are regulated in Article 13 of Law 7/2021 in which a carbon tax is to be imposed on entities producing carbon emissions that have a negative impact on the environment.[73] Based on Law 7/2021, the imposition of the carbon tax is to be carried out by a combination of two schemes, a carbon tax (cap and tax) and carbon trade (cap and trade).

In the carbon trade scheme, individual or company ("entities") that produce emissions exceeding the cap are required to purchase emission permit certificates ("Sertifikat Izin Emisi"/SIE) from other entities that produce emissions below the cap.

In addition, entities can also purchase emission reduction certificates ("Sertifikat Penurunan Emisi"/SPE). However, if the entity is unable to purchase SIE or SPE in full for the resulting emissions, the cap and tax scheme will apply where entities producing residual emissions that exceed the cap will be subject to carbon tax.

Major energy companies in Indonesia

The logo of Pertamina

Indonesian firms

Foreign firms

Greenhouse gas emissions

Main article: Climate change in Indonesia

The CO2 emissions of Indonesia were greater than those of Italy already in 2009. Indonesia's total greenhouse gas emissions including construction and deforestation in 2005 put Indonesia among the top four in the world after China, the US and Brazil.[74] The carbon intensity of electricity generation, at over 600 gCO2/kWh, is higher than those most other countries.[75]

See also


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