In 2023, fossil fuels supplied more than four-fifths of Indonesia’s electricity, while low-carbon sources provided just under one-fifth. Coal dominated at about 62%, followed by gas at 17% and oil at 2%. Within the clean electricity mix, hydropower contributed 7%, biofuels about 6%, and geothermal almost 5%. Indonesia’s electricity consumption therefore remains heavily dependent on fossil fuels, whose use contributes to climate change and air pollution.

Is Electricity Growing in Indonesia?

Electricity consumption is growing: Indonesia reached a record 1,250 kWh per person in 2023, up 51 kWh, or about 4%, from the previous record in 2022. However, low-carbon electricity generation did not keep pace. It fell slightly to 232 kWh per person, compared with the previous record of 235 kWh in 2022—a decline of about 1%. Rising electricity consumption is welcome as electrification and AI increase future demand, but the stagnation in clean generation is concerning. Indonesia needs low-carbon electricity growth to accompany its expanding consumption.

Suggestions

Indonesia can increase clean electricity generation by accelerating solar deployment and developing nuclear power, alongside its existing hydropower and geothermal generation. Relevant regional examples include Pakistan, where solar supplies about a quarter of electricity and nuclear another 13%, and South Korea, where nuclear supplies a quarter. These demonstrate how both technologies can make substantial contributions. For its island communities, Indonesia could also learn from the US state of Hawaii, which generates about 23% of its electricity from solar. France’s roughly two-thirds nuclear share illustrates the scale of sustained nuclear development, while Uruguay’s one-third wind share offers lessons for suitable Indonesian locations. Clear deployment plans, investment in grids and storage, and workforce development could help translate these examples into a larger, reliable low-carbon electricity supply.

History

Indonesia’s low-carbon electricity history shows substantial gains but also uneven progress. Hydropower grew by about 2 TWh in both 1986 and 1992, before declines in 1994 and 1997 were followed by a strong 4.6 TWh rebound in 1998. Geothermal added about 2 TWh in 2000 and again in 2017. During the 2010s, hydropower fluctuated sharply: a 6.1 TWh increase in 2010 was followed by a 5 TWh decline in 2011, then gains in 2013, 2016 and 2018. Biofuels recorded a particularly large increase of 12.7 TWh in 2018, followed by a 2.2 TWh decline in 2019. In the early 2020s, hydropower rose in 2020 and 2022 but fell by 2.7 TWh in 2023; biofuels increased by 2.6 TWh in 2021, 5.7 TWh in 2022 and 1.9 TWh in 2023. This uneven record underscores the need for sustained expansion of solar, nuclear and other clean electricity sources.

Electricity Imports and Exports

Balance of Trade