Electricity in Indonesia in 2023

In 2023, Indonesia's electricity consumption predominantly relies on fossil fuels, which comprise over four-fifths of the total usage. Specifically, coal makes up the majority at 62%, with gas contributing approximately 17%, and oil accounting for nearly 2%. Clean energy sources, while not the commanding force in the energy mix, still play a significant role, comprising nearly a fifth of the electricity generation. Hydropower leads the charge in low-carbon electricity sources at 7%, followed by biofuels and geothermal energy, contributing around 6% and 5%, respectively. Despite the reliance on fossil fuels, Indonesia's current energy landscape shows clear room for growth in clean energy solutions.

Suggestions

To enhance its low-carbon electricity generation, Indonesia can look to lessons from countries that have successfully transitioned to higher shares of clean energy. A promising avenue is the expansion of nuclear energy, as seen in countries like France and Slovakia, where nuclear provides more than half of their electricity needs efficiently and sustainably. Alternatively, increasing the contribution of wind and solar energy, as demonstrated by Denmark's 52% wind-based electricity, and Lebanon's and Chile's significant solar contributions at over 20%, could also serve as viable pathways. Integrating these sustainable energy sources not only aids in mitigating climate change but also reduces air pollution, providing a cleaner environment and a more stable energy future.

History

Historically, Indonesia's journey in low-carbon electricity generation reflects a mixed but promising development. During the late 20th century and into the early 2000s, hydropower experienced several increments and declines but managed consistent growth overall. Notably, in the 2010s, significant developments in hydropower and geothermal energy were seen, with the latter achieving notable increments in 2017. The biofuels sector saw substantial growth, particularly in the late 2010s and early 2020s, contributing a major boost in 2018. Despite a decrease in hydropower generation in 2023, it remains a vital component of Indonesia's clean energy strategy. The overall trajectory showcases a country that is progressively increasing its commitment to low-carbon electricity, with clean sources consistently rising in prominence.

Electricity Imports and Exports

Balance of Trade

Data Sources