ABOUT THE
IFEGS2025
WHY INDONESIA
Indonesia is at a pivotal stage in its energy transformation. As an archipelago of over 18,000 islands and home to 274.9 million people, the nation not only drives Southeast Asia's largest economy but also bears the responsibility of addressing one of the region’s most complex energy transitions.
The nation is navigating the challenges of transitioning from fossil fuel dependence to a low-carbon energy future. As the government works toward its ambitious goal of achieving a 23% renewable energy mix by 2025 and reaching net-zero carbon emissions by 2060, modernizing and transforming its power grid has become a critical component of the nation's energy strategy.
Indonesia's energy sector has experienced remarkable growth over the past decade. From 2012 to 2022, the country's primary energy supply increased by 37%, driven by industrial expansion and a recovery from the COVID-19 economic slowdown. Despite these gains, the energy mix remains heavily reliant on coal (41%), oil (30%), and natural gas (13%), with renewable energy sources contributing only 11%. This imbalance underscores the need for a strategic pivot toward sustainable energy solutions.
Recent policy frameworks from PLN, the state utility, outlined in the Electricity Supply Business Plan (RUPTL) 2021-2030, set a clear direction for this transformation. The plan includes installing 40.9 GW of additional power capacity by 2030, with 51.6% coming from renewable sources, laying the groundwork for a greener future. Furthermore, the establishment of the Nuclear Energy Program Implementation Organization and the exploration of green hydrogen showcase Indonesia’s commitment to adopting advanced energy technologies.
These advancements highlight Indonesia's readiness to embrace the transformation. Renewable energy contributions rose by 13.8% in 2023, while the establishment of the Nuclear Energy Program Implementation Organization signals a bold step toward integrating atomic power into the energy mix. At the same time, digitalization, energy efficiency, and electrification are reshaping the nation’s energy landscape, offering unparalleled opportunities for innovation and investment.