The use of renewable energy in Indonesia has steadily increased in recent years, in line with the government's commitment to achieving its net-zero emission targets.
According to a report by the Central Statistics Agency (BPS), in 2015, the share of renewable energy was only 4.9% of the national energy mix. This figure steadily rose to 12.16% in 2021, as shown in the graph.
Based on the Government Work Plan (RKP), the share of renewable energy is targeted to further increase to 15.7% in 2022 and reach 23% in 2025.
Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif stated that Indonesia possesses abundant potential for new and renewable energy (EBT), estimated at around 3,000 gigawatts (GW).
"This EBT potential will be utilized to the maximum extent to accelerate the energy transition. By 2060, the target is to achieve 700 GW of EBT power generation capacity from solar, hydro, wind, bioenergy, ocean, geothermal, including hydrogen and nuclear," said Arifin in his press release on Wednesday (September 14, 2022).
The International Renewable Energy Agency (IRENA) even assesses Indonesia's renewable energy potential to reach 3,692 GW. However, as of 2021, the installed capacity was only 10.5 GW, or approximately 0.3% of the total potential.
"Significant barriers to Indonesia's energy transition are funding and investment. Financing sources need to be broadened, and local financing capacity needs to be enhanced," stated IRENA in its October 2022 report, *Indonesia Energy Transition Outlook*.