Electricity in Indonesia in 2023

In 2023, Indonesia's electricity consumption relies heavily on fossil fuels, with more than 80% of electricity generated from these sources. Coal alone accounts for almost 62%, highlighting the country's significant dependence on this high-emission energy type. On the cleaner side, low-carbon energy sources collectively make up just over 18.5% of electricity generation. This includes around 7% from hydropower, 6.4% from biofuels, and close to 5% from geothermal energy. Gas, another fossil fuel, contributes about 17.4% while oil is used minimally, at just under 2%. Overall, the current state of electricity consumption in Indonesia is dominated by fossil energy, leaving a substantial need for increasing low-carbon electricity generation.

Suggestions

Indonesia can look towards successful countries for inspiration on increasing its low-carbon electricity generation. For instance, France and Slovakia have excelled with nuclear power, generating 67% and 60% of their electricity from this source, respectively. They have demonstrated that a significant investment in nuclear energy can considerably reduce reliance on fossil fuels. Similarly, Denmark and Uruguay have found success with wind energy, with 61% and 36% of their electricity coming from this clean source. Given Indonesia's growing electricity needs and geographic potential, it could focus on expanding both nuclear and wind power, leveraging international best practices and technologies to make robust advancements in its energy transition.

History

Indonesia's history with low-carbon electricity has seen various developments over the years. In the late 1980s and early 1990s, hydropower was gradually increased with an addition of around 2 TWh annually but faced some declines in the late 1990s. The early 2000s saw fluctuations, but by 2010, there was a notable 6.1 TWh increase in hydropower generation, although this was followed by a 5 TWh decline in 2011. From 2013 onwards, hydropower saw multiple increases and occasional declines, including a 4.9 TWh rise in 2016, and a 3.2 TWh increase in 2020. Significant strides were made in other low-carbon sources as well, with biofuels contributing an impressive 12.7 TWh increase in 2018. Geothermal energy also began to play a larger role, particularly in 2017 with an increase of 2.1 TWh. However, hydropower saw another decline of 2.7 TWh in 2023, though biofuels managed to rise by 1.9 TWh the same year. This historical context highlights the ongoing efforts and challenges Indonesia faces in expanding its low-carbon electricity generation.

Electricity Imports and Exports

Balance of Trade

Data Sources