Indonesia's Energy Needs Projected to Reach 2.9 Billion Oil Equivalent Barrels in 2050

The Central Statistics Agency (BPS) reports that Indonesia's energy needs will reach 2.9 billion barrels of oil equivalent (BOE) in 2050. This figure is an increase from the 2040 projection of 2.1 billion BOE.

This projected increase in energy demand aligns with economic growth, population growth, energy prices, and government policies. By sector, energy needs will be dominated by the industrial sector, with an estimated average growth rate of 3.9% per year.

The commercial, household, and other sectors will also continue to increase in line with economic growth and population growth. The growth rate of the transportation sector is projected to be lower than that of the industrial sector, at 3.2% per year.

By type, final energy demand will still be dominated by fossil fuels (BBM) with an average growth rate of 2.8% per year. This is because the use of fossil fuel-based equipment is still more efficient than other energy equipment.

Biodiesel is also experiencing an increase due to its role as a substitute for fossil fuels, usable in several sectors, including transportation, industry, commerce, and power generation. Furthermore, the development of electricity-based technological innovations in almost every sector, such as electric vehicles, will result in increased electricity demand in 2050, with a growth rate of 4.7% per year. For biomass and biogas, BPS did not include household energy needs in its calculations.