Electricity in Indonesia in 2023

In 2023, Indonesia's electricity consumption is predominantly reliant on fossil fuels, with more than 80% of its electricity coming from these sources. Coal alone accounts for a significant portion, contributing about 62% to the electricity mix. Only a small fraction, just over 18%, is generated from low-carbon sources, including hydropower, biofuels, and geothermal energy. Gas power, also derived from fossil sources, contributes around 17%, with oil adding less than 2% to the mix. The country's dependence on fossil fuels raises concerns about sustainability, climate change, and air pollution, suggesting a pressing need to shift towards cleaner energy sources.

Suggestions

To increase low-carbon electricity generation, Indonesia could consider lessons from countries excelling in clean energy. Denmark and Uruguay, for instance, have invested substantially in wind energy, achieving about 59% and 33% of their electricity from wind, respectively. Indonesia, with its coastal and island geography, has the potential to harness wind energy effectively. Similarly, solar energy has been successfully deployed in countries like Greece, Chile, and Australia, each generating over one-fifth of their electricity from solar sources. Learning from these examples, Indonesia could prioritize the adoption of wind and solar technologies. Moreover, nuclear energy, which provides a significant share of electricity in countries such as France (68%) and South Korea (31%), offers a stable and powerful option for Indonesia to consider in its transition to a low-carbon electricity future.

History

The history of low-carbon electricity development in Indonesia reflects a fluctuating pattern, particularly in hydropower. In the late 20th century, hydroelectric generation saw modest increases with notable boosts in the late 1990s. However, the early 21st century witnessed both growth spurts and declines, most prominently in 2011 and 2023. Meanwhile, geothermal energy made a positive contribution in 2017, suggesting steady progress in this area. Biofuels marked a substantial rise in 2018, followed by consistent growth in the subsequent years, although this particular energy type comes with its own set of debates. Overall, while Indonesia has made strides in diversifying its low-carbon energy portfolio, there remains ample room for development, particularly in expanding sustainable options like nuclear, wind, and solar energy.

Electricity Imports and Exports

Balance of Trade

Data Sources