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Energy in Indonesia
In 2019, the total energy production in Indonesia is 450.79 million tonnes of oil equivalent, with a total primary energy supply of 231.14 million tonnes of oil equivalent and electricity final consumption of 263.32 terawatt-hours. From 2000 to 2021, Indonesia's total energy supply increased by nearly 60%.
Energy use in Indonesia has been long dominated by fossil resources. Once a major oil exporter that joined OPEC in 1962, the country has since become a net oil importer despite still being in OPEC until 2008 and for a short time in 2016, making it the only net oil importer member in the organization. Indonesia is also the fourth-largest coal producer and one of the biggest coal exporters in the world, with 24,910 million tons of proven coal reserves as of 2016, making it the 11th country with the most coal reserves in the world. In addition, Indonesia has abundant renewable energy potential, reaching almost 417,8 gigawatt (GW) which consisted of solar, wind, hydro, geothermal energy, ocean current, and bioenergy, although only 2,5% have been utilized. Furthermore, Indonesia along with Malaysia, have two-thirds of ASEAN's gas reserves with a total annual gas production of more than 200 billion cubic meters in 2016.
The Government of Indonesia has outlined several commitments to increase clean energy use and reduce greenhouse gas emissions, among others by issuing the National Energy General Plan (RUEN) in 2017 and joining the Paris Agreement. In the RUEN, Indonesia targets New and Renewable Energy to reach 23% of the total energy mix by 2025 and 31% by 2050. The country also commits to reduce its greenhouse gas emissions by 29% by 2030 against a business-as-usual baseline scenario, and up to 41% by international support. It also has committed to phasing out coal power by 2040s, although numerous challenges remain
Indonesia has several high-profile renewable projects, such as the 75 MW wind farm in Sidenreng Rappang Regency, another 72 MW wind farm in Jeneponto Regency, and Cirata Floating Solar Power Plant in West Java with a capacity of 145 MW which will become the largest Floating Solar Power Plant in Southeast Asia.
According to the IEA, energy production increased 34% and export 76% from 2004 to 2008 in Indonesia. In 2017, Indonesia had 52,859 MW of installed electrical capacity, 36,892 MW of which were on the Java–Bali grid. In 2022, Indonesia had an electrical capacity of 81.2 GW with a projected capacity of 85.1 GW for 2023.
In 2021, Indonesia's total energy supply (TES) comprised 30.3% coal, 28.9% oil, and 14.4% natural gas. Renewable energy sources also added to the mix, with biofuels and waste accounting for 13.8%, wind and solar providing 11.6%, and hydro contributing 0.9%.
Indonesia, recognized as the world's largest exporter of thermal coal since surpassing Australia in 2018, plays a significant role in the global coal market, primarily serving Asian countries such as China, India, Japan, and others. As of 2019, Indonesia exported 506 million short tons of coal, making up 32% of the world's coal exports. The country's coal production surged to a record 679 million short tons in 2019, a 12% increase from the previous year. This spike in production led to a drop in prices, prompting the government to set a production cap of 606 million short tons in 2020.
Domestically, Indonesia implemented a Domestic Market Obligation (DMO), requiring mining companies to allocate 25% of their production for local use at a fixed price of $70 per ton. However, due to a reduction in domestic demand in 2020, the Indonesian Coal Mining Association requested a temporary suspension of the DMO.
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Energy in Indonesia
In 2019, the total energy production in Indonesia is 450.79 million tonnes of oil equivalent, with a total primary energy supply of 231.14 million tonnes of oil equivalent and electricity final consumption of 263.32 terawatt-hours. From 2000 to 2021, Indonesia's total energy supply increased by nearly 60%.
Energy use in Indonesia has been long dominated by fossil resources. Once a major oil exporter that joined OPEC in 1962, the country has since become a net oil importer despite still being in OPEC until 2008 and for a short time in 2016, making it the only net oil importer member in the organization. Indonesia is also the fourth-largest coal producer and one of the biggest coal exporters in the world, with 24,910 million tons of proven coal reserves as of 2016, making it the 11th country with the most coal reserves in the world. In addition, Indonesia has abundant renewable energy potential, reaching almost 417,8 gigawatt (GW) which consisted of solar, wind, hydro, geothermal energy, ocean current, and bioenergy, although only 2,5% have been utilized. Furthermore, Indonesia along with Malaysia, have two-thirds of ASEAN's gas reserves with a total annual gas production of more than 200 billion cubic meters in 2016.
The Government of Indonesia has outlined several commitments to increase clean energy use and reduce greenhouse gas emissions, among others by issuing the National Energy General Plan (RUEN) in 2017 and joining the Paris Agreement. In the RUEN, Indonesia targets New and Renewable Energy to reach 23% of the total energy mix by 2025 and 31% by 2050. The country also commits to reduce its greenhouse gas emissions by 29% by 2030 against a business-as-usual baseline scenario, and up to 41% by international support. It also has committed to phasing out coal power by 2040s, although numerous challenges remain
Indonesia has several high-profile renewable projects, such as the 75 MW wind farm in Sidenreng Rappang Regency, another 72 MW wind farm in Jeneponto Regency, and Cirata Floating Solar Power Plant in West Java with a capacity of 145 MW which will become the largest Floating Solar Power Plant in Southeast Asia.
According to the IEA, energy production increased 34% and export 76% from 2004 to 2008 in Indonesia. In 2017, Indonesia had 52,859 MW of installed electrical capacity, 36,892 MW of which were on the Java–Bali grid. In 2022, Indonesia had an electrical capacity of 81.2 GW with a projected capacity of 85.1 GW for 2023.
In 2021, Indonesia's total energy supply (TES) comprised 30.3% coal, 28.9% oil, and 14.4% natural gas. Renewable energy sources also added to the mix, with biofuels and waste accounting for 13.8%, wind and solar providing 11.6%, and hydro contributing 0.9%.
Indonesia, recognized as the world's largest exporter of thermal coal since surpassing Australia in 2018, plays a significant role in the global coal market, primarily serving Asian countries such as China, India, Japan, and others. As of 2019, Indonesia exported 506 million short tons of coal, making up 32% of the world's coal exports. The country's coal production surged to a record 679 million short tons in 2019, a 12% increase from the previous year. This spike in production led to a drop in prices, prompting the government to set a production cap of 606 million short tons in 2020.
Domestically, Indonesia implemented a Domestic Market Obligation (DMO), requiring mining companies to allocate 25% of their production for local use at a fixed price of $70 per ton. However, due to a reduction in domestic demand in 2020, the Indonesian Coal Mining Association requested a temporary suspension of the DMO.