According to the Ministry of Energy and Mineral Resources (ESDM) report, the total installed capacity of Indonesia's renewable energy (EBT) reached 12,529 megawatts (MW) in 2022.
This capacity is a combination of hydropower plants (PLTA), bioenergy, geothermal power plants (PLTP), solar power plants (PLTS), and wind power plants (PLTB).
From 2018 to 2022, hydropower plants were the largest EBT power plants in Indonesia. The capacity of other EBT sources was significantly lower, as shown in the graph.
However, according to the International Renewable Energy Agency (IRENA), Indonesia's largest renewable energy potential lies in solar energy.
In its *Indonesia Energy Transition Outlook* report (October 2022), IRENA estimated Indonesia's solar energy potential at 2,898 gigawatts (GW), while the potential for hydropower is only 94.6 GW.
The following is a complete list of Indonesia's EBT potential according to IRENA's research:
* Solar Energy: 2,898 GW potential
* Offshore Wind Energy: 589 GW potential
* Hydropower: 94.6 GW potential
* Biomass Energy: 43.3 GW potential
* Geothermal Energy: 29.5 GW potential
* Onshore Wind Energy: 19.6 GW potential
* Ocean Current/Thermal Energy: 17.9 GW potential
Despite having abundant renewable energy resources, IRENA assesses that Indonesia's installed EBT capacity has not yet reached 1% of its total potential.
IRENA encourages Indonesia to develop the utilization of renewable energy to reduce carbon emissions in accordance with the targets of the Paris Agreement.
However, to achieve this target, Indonesia requires strong energy transition planning and regulations, improved infrastructure and technological capabilities, and substantial investment.
According to IRENA, the majority of investment is needed for the transformation of the electricity sector, ranging from increasing the installed capacity of EBT power plants, building transmission and energy storage networks, and other supporting infrastructure.
"A significant obstacle in driving Indonesia's energy transition is funding and investment. Funding sources need to be expanded, and local financing capacity needs to be improved," stated IRENA in its October 2022 *Indonesia Energy Transition Outlook* report.