In 2023, Indonesia's electricity consumption heavily relies on fossil fuels, with over four-fifths of its electricity being generated from these non-clean energy sources. Coal alone accounts for nearly two-thirds of the total electricity produced, while gas contributes around one-sixth, and oil represents close to none of the overall share. Meanwhile, low-carbon energy sources, which include hydropower, biofuels, and geothermal, contribute slightly less than a fifth of Indonesia's electricity. Notably, hydropower and biofuels each make up about 7% and 6% respectively, while geothermal accounts for roughly 5%. This significant reliance on fossil fuels highlights an urgent need for Indonesia to expand its clean electricity generation in order to mitigate climate change and air pollution impacts.
Is Electricity Growing in Indonesia?
Electricity consumption in Indonesia is clearly growing, with the latest figures indicating an increase to 1250 kWh per person in 2023, up from the previous record of 1199 kWh per person in 2022. This growth of 51 kWh per person is a positive indication of the country's expanding energy needs being met. However, it is concerning to note a slight decline in the share of low-carbon electricity generation, which stood at 232 kWh per person in 2023, down from 235 kWh per person in 2022. This decrease of 3 kWh per person suggests that while overall electricity consumption is rising, the transition to cleaner energy sources is not keeping pace. For sustainable growth, Indonesia needs to focus on increasing its low-carbon electricity generation to ensure a greener future.
Suggestions
To increase low-carbon electricity generation, Indonesia can draw lessons from successful regions worldwide. For example, countries like France and Slovakia have successfully implemented nuclear power, contributing to 68% and 62% of their electricity generation, respectively. Considering Indonesia's geographical setting and growing solar potential, the nation could also benefit greatly from expanding solar energy akin to Lebanon and Nevada, where solar energy accounts for 31% and 27% of their electricity generation. Moreover, looking at regions like Denmark and Iowa that have excelled in wind energy generation, increasing wind power capacity could additionally support Indonesia's transition to clean electricity. By investing in nuclear and solar, Indonesia can significantly and sustainably boost its low-carbon electricity generation.
History
Indonesia's history of low-carbon electricity generation has seen variable growth over the years. Initially, hydropower was the primary low-carbon source, with notable positive contributions in the late 1980s and early 1990s, although it also faced occasional declines, as seen in 1997 and 2002. In the 2010s, geothermal began to play a role, with a 2.1 TWh increase in 2017. The emergence of biofuels also marked a shift towards diversifying the low-carbon energy mix, especially in 2018 with a significant increase of 12.7 TWh. Recently, there have been continued investments in biofuels and hydropower, but the fluctuations in their outputs, including a reduction in hydro in 2023, suggest the need for a more diversified and robust approach towards low-carbon energy. Expanding solar and nuclear will provide a stable and sustainable solution to meet Indonesia's growing electricity demand.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.