In 2023, fossil fuels supplied just over 81% of Indonesia’s electricity, while low-carbon sources provided about 19%. Coal dominated, accounting for almost 62% of electricity consumption, followed by gas at around 17% and oil at about 2%. Within the clean electricity mix, hydropower contributed 7%, biofuels roughly 6%, and geothermal almost 5%. Indonesia therefore remained heavily dependent on fossil electricity, highlighting the opportunity to expand clean generation and reduce the climate-changing emissions and air pollution associated with fossil fuels.

Is Electricity Growing in Indonesia?

Electricity consumption is growing in Indonesia: in 2023, it reached a new record of 1,250 kWh per person, up 51 kWh—or about 4%—from the previous record of 1,199 kWh in 2022. However, low-carbon electricity generation did not keep pace. It slipped to 232 kWh per person, down 3 kWh from its 2022 record of 235 kWh. Rising electricity consumption is encouraging as Indonesia electrifies its economy, but the small decline in clean generation per person is concerning. Accelerating low-carbon electricity growth would help meet future demand from electrification, industry, and AI while reducing dependence on coal.

Suggestions

Indonesia can increase low-carbon electricity generation by rapidly expanding solar power, developing nuclear electricity, and adding wind where local conditions are suitable. Relevant regional examples include Australia, where solar supplies about 21% of electricity, and tropical Sri Lanka, where it supplies 15%. Indonesia could learn from their experience with solar deployment while expanding rooftop and utility-scale projects across its islands. For nuclear development, South Korea, with around 25% nuclear electricity, and Pakistan, with 13%, offer useful Asian examples of building expertise and supplying substantial clean electricity. France’s roughly two-thirds nuclear share demonstrates the scale achievable over time. Australia’s 16% wind share also provides a useful reference for diversifying clean generation. Investment in grids, inter-island connections, and storage would help these sources serve Indonesia’s growing electricity needs.

History

Indonesia’s low-carbon electricity history shows substantial additions alongside uneven hydropower output. Hydro generation increased by about 2 TWh in both 1986 and 1992, then declined in 1994 and 1997 before rebounding by nearly 5 TWh in 1998. Geothermal added about 2 TWh in 2000 and again in 2017. During the 2010s, hydro rose by 6 TWh in 2010, fell by 5 TWh in 2011, and subsequently recorded gains of roughly 3–5 TWh in 2013, 2016, and 2018. Biofuel electricity increased by almost 13 TWh in 2018 before declining by about 2 TWh in 2019. In the early 2020s, hydro gained around 3 TWh in 2020 and 2022, but lost nearly 3 TWh in 2023; biofuels added roughly 3 TWh in 2021, 6 TWh in 2022, and 2 TWh in 2023. This uneven progress reinforces the importance of sustained expansion in solar and nuclear electricity alongside Indonesia’s existing clean generation.

Electricity Imports and Exports

Balance of Trade