In 2023, Indonesia relied on fossil fuels for about 81% of its electricity, with coal alone supplying almost two-thirds. Gas contributed around 17% and oil about 2%. Low-carbon sources provided less than a fifth of electricity: hydropower supplied 7%, biofuels about 6%, and geothermal nearly 5%. This leaves considerable room to expand clean electricity and reduce the climate-changing emissions and air pollution associated with fossil fuels.

Is Electricity Growing in Indonesia?

Electricity consumption per person is growing: it reached a new record of 1,250 kWh in 2023, up 51 kWh, or about 4%, from the previous record in 2022. That growth is welcome as electrification and new industries increase electricity needs. However, low-carbon electricity generation per person slipped to 232 kWh, down 3 kWh from its 2022 record of 235 kWh. This disappointing divergence shows that clean electricity needs to grow faster to meet rising demand while reducing fossil dependence.

Suggestions

Indonesia should accelerate solar deployment and develop nuclear electricity alongside its existing low-carbon sources. Relevant solar examples include nearby Australia, where solar supplies 21% of electricity, and the tropical island country Sri Lanka, where it supplies 15%. The US state of Hawaii, with a 23% solar share, also offers an island-grid reference. Indonesia could expand rooftop and utility-scale solar while strengthening grids, storage and connections between islands. For nuclear development, South Korea, which generates 25% of its electricity from nuclear, offers a useful Asian reference for building expertise and supply chains; France, at 67%, demonstrates nuclear’s potential to provide a large share of clean electricity. Together, solar and nuclear could support substantial growth in Indonesia’s low-carbon electricity supply.

History

Indonesia’s low-carbon electricity history shows repeated gains alongside fluctuations, particularly in hydropower. Hydro generation rose by about 2 TWh in both 1986 and 1992, fell in 1994 and 1997, then rebounded by nearly 5 TWh in 1998. Geothermal added about 2 TWh in both 2000 and 2017. During the 2010s, hydro increased by about 6 TWh in 2010 before dropping 5 TWh in 2011, followed by gains of roughly 3–5 TWh in 2013, 2016 and 2018. Biofuels recorded a nearly 13 TWh increase in 2018, followed by a 2 TWh decline in 2019. In the early 2020s, hydro gained about 3 TWh in both 2020 and 2022, but lost almost 3 TWh in 2023; biofuels increased by roughly 3 TWh in 2021, 6 TWh in 2022 and 2 TWh in 2023. These uneven changes underline the importance of sustained expansion across clean electricity sources.

Electricity Imports and Exports

Balance of Trade