Power in Indonesia

Indonesia is at a crucial point in its power sector, striving to balance affordability, availability and sustainability while driving economic growth. The Government’s 2025–2034 Electricity Supply Business Plan (RUPTL) outlines a bold energy transition, targeting 23% renewable energy in the primary energy mix by 2025 and net-zero emissions by 2060. Despite near-universal electrification and rising per capita electricity consumption, coal and oil still dominate, contributing over two-thirds of the energy mix and driving greenhouse gas (GHG) emissions.

To meet ambitious climate commitments under the Paris Agreement and unlock opportunities in solar, hydro, geothermal and biomass, Indonesia plans to add 42.6 Gigawatt (GW) of renewable capacity and 10.3 GW of battery energy storage systems. Achieving these goals will require structural reforms, improved investment terms and strong private sector participation, making this a defining moment for investors seeking growth in Indonesia’s energy transition and renewable energy investment landscape.

Overview of the Indonesian power sector

Indonesia’s power sector underpins Southeast Asia’s largest economy, with near-universal electrification (99.83%) and installed capacity reaching 100.7 GW in 2024. Coal remains dominant at over 40% of the energy mix, while renewables account for just 14.68%. Rising electricity demand, regional disparities and ambitious targets for sustainability highlight the need for strategic investment and infrastructure upgrades.

Energy Transition Roadmap (ETR) under MoEMR Regulation No.10/2025

The Energy Transition Roadmap (ETR) for the electricity sector, an integral element of Indonesia’s comprehensive energy policy framework, details the path for significantly lowering GHG emissions, transitioning to Renewable Energy (RE) sources and ultimately achieving NZE by 2060. The ETR is based on the 2025-2060 RUKN.

To accommodate the rising demand for electricity and to replace existing power plants approaching end of useful life, there is a need for an annual increase in capacity of about 9.6 GW. By 2060, the anticipated total power generation capacity is expected to reach 443 gigawatts. This capacity will comprise approximately 41.5% from variable RE sources, which will include around 34 GW of storage capacity and the remaining 58.5% from dispatchable, non-variable renewable energy sources.

Total power plant capacity mix in 2060

Potential renewable energy in Indonesia

Indonesia holds vast renewable potential: 207.8 GW solar, 75 GW hydro, 29.5 GW geothermal and 60.6 GW wind. The RUPTL targets 42.6 GW of renewable capacity by 2034, including solar PV, pumped hydropower, geothermal and bioenergy.