In 2023, Indonesia's electricity generation relies heavily on fossil fuels, accounting for more than 80% of the total electricity supply, with coal as the dominant source at nearly 62%. Low-carbon energy sources, including hydropower, biofuels, and geothermal, contribute to about 19% of the electricity mix. Hydropower is the largest low-carbon source at roughly 7%, followed by biofuels at 6.4% and geothermal energy at about 4.8%. Oil plays a minimal role in the electricity mix, making up just under 2%. The significant reliance on fossil fuels, particularly coal and gas, underscores the need for Indonesia to shift towards more sustainable energy sources to address issues such as climate change and air pollution.

Is Electricity Growing in Indonesia?

Electricity consumption in Indonesia is experiencing growth, with per capita consumption increasing to 1250 kWh in 2023 from 1199 kWh in 2022, reflecting an increase of 51 kWh per person. However, the generation of low-carbon electricity has slightly declined, dropping from 235 kWh per person in 2022 to 232 kWh in 2023, indicating a decrease of 3 kWh per person. The overall growth in electricity consumption is promising, but the slight reduction in clean energy generation highlights the necessity for Indonesia to further invest in green energy technologies to keep pace with its energy needs and sustainability goals.

Suggestions

To enhance its low-carbon electricity generation, Indonesia can draw inspiration from regions successfully harnessing solar and nuclear energy. For instance, countries like France and Slovakia generate a substantial portion of their electricity from nuclear power, at around 66-67%. Additionally, regions in the U.S. like Nevada and California leverage solar power effectively, contributing 31-35% of their electricity. Implementing a diverse energy mix, incorporating both solar and nuclear energy, can help Indonesia reduce its dependence on fossil fuels and progress towards a more sustainable energy framework. By learning from these regions, Indonesia can scale up its clean energy infrastructure and reduce its environmental impact.

History

Historically, Indonesia's low-carbon electricity generation has seen various shifts. In the late 1980s and early 1990s, Indonesia saw incremental growth in hydroelectric power, but by the mid-1990s and into the late 1990s, there were notable fluctuations, including declines. Significant strides were made in geothermal energy with an increase in the early 2000s and in biofuels in recent years. The 2010s marked a decade of variability, with hydro seeing both advancements and setbacks. The developments in biofuels from 2018 onward have shown promise, although the slight recent decline indicates areas needing attention. These historical shifts emphasize the need for consistent investment and innovation in clean energy technologies.

Electricity Imports and Exports

Balance of Trade