National Primary Energy Mix Dominated by Coal

A ReforMiner report titled "The Role of Oil and Gas in Indonesia's Energy Mix and Energy Transition" notes that oil and gas (migas) play a crucial role in Indonesia's primary energy mix.

ReforMiner explains that the role of oil and gas in the primary energy mix and the implementation of energy transition, both globally and in Indonesia, will remain significant for the foreseeable future.

In 2021, the share of oil and gas in the national primary energy mix was approximately 51%, with 31.2% being crude oil and 19.3% natural gas.

Meanwhile, 38% of the national primary energy mix consisted of coal and 11.5% of new and renewable energy (NRE).

By 2050, the projected share of oil and gas is approximately 44% of Indonesia's total primary energy consumption. The share of natural gas is projected to increase to 24%, while crude oil is projected to decrease to 20%.

The share of coal in the energy mix is also projected to decrease to 25% by 2050. Meanwhile, the share of NRE is projected to increase to 31%.

The report shows that the portion of gas used for domestic purposes has recorded positive growth, increasing by an average of approximately 1.50% per year from 2012 to 2021.

The portion of gas used domestically increased from 52% in 2012 to 65% in 2021. The industrial and fertilizer sectors are recorded as the main contributors to the increase in domestic natural gas consumption, with shares of 26.68% and 12.73% of total national gas production, respectively.

(Also Read: Coal-fired Electricity Projected to Increase by 69,702 GWh until 2030)