Electricity in Indonesia in 2023

In 2023, Indonesia's electricity consumption remains heavily reliant on fossil fuels, with more than 80% of electricity generated from sources like coal, oil, and gas. Coal alone accounts for approximately 62% of electricity, while gas contributes around 17%, and oil just under 2%. Despite fossil fuels' dominance, low-carbon or clean energy sources comprise almost a fifth of Indonesia's electricity mix. Notably, hydropower leads the low-carbon sector with 7%, followed by biofuels at 6.4% and geothermal at nearly 5%. These figures highlight the urgent need for a shift towards cleaner electricity sources to mitigate the effects of climate change and reduce pollution.

Suggestions

To enhance its low-carbon electricity generation, Indonesia can draw inspiration from other nations. Recognizing that countries like Denmark and Uruguay have effectively integrated wind energy—59% and 36% of their electricity mix, respectively—Indonesia should leverage its extensive coastline and favorable wind conditions to expand its wind energy capacity. Similarly, adopting nuclear energy, which provides a significant share of electricity in countries with a strong nuclear presence like France (67%) and Ukraine (55%), can be a viable path for Indonesia to secure steady and sustainable electricity while curbing fossil fuel dependence. Furthermore, countries such as Chile and Greece have made substantial strides in solar electricity generation with 21% and 22%, respectively, setting great examples for Indonesia to increase its solar energy investments.

History

Historically, Indonesia's journey into low-carbon electricity saw varied progressions. In the late 20th century, hydropower experienced significant fluctuations, highlighting its volatility. The 2010s marked a more stable period, with notable increases in hydropower from the beginning of the decade—most impressively in 2010 with 6.1 TWh. Around the same time, enthusiasm for geothermal energy emerged, demonstrated by its introduction in 2017 with an increase of 2.1 TWh. Biofuels saw a remarkable rise in 2018 with an increase of 12.7 TWh, and continued to grow in the following years. However, recent declines in both biofuels and hydropower generation in 2023 indicate a need for more robust strategies to ensure long-term sustainable electricity solutions. Diversifying the low-carbon portfolio with more stable options like nuclear and wind could provide the necessary consistency and growth for Indonesia's electricity needs.

Electricity Imports and Exports

Balance of Trade

Data Sources