What's Happening?
Indonesia is set to significantly expand its renewable energy capacity, reaching 38.1 gigawatts (GW) by 2035, according to GlobalData. This growth is driven by solar photovoltaic (PV) and onshore wind
projects, supported by evolving policy frameworks such as the National Energy Policy (KEN), RUPTL 2025-2034, and Presidential Regulation 112/2022. Solar capacity is expected to surge from 0.9 GW in 2024 to 23.2 GW in 2035, with onshore wind increasing from 0.15 GW to 2.6 GW. Geothermal power will also expand from 2.6 GW to 5.5 GW, leveraging Indonesia's geothermal potential. Despite this growth, Indonesia will continue to rely heavily on thermal sources, with coal-fired capacity rising from 55.6 GW to 61.4 GW and gas-fired capacity increasing from 29.1 GW to 36 GW.
Why It's Important?
The expansion of renewable energy in Indonesia is crucial for diversifying the country's energy mix and reducing reliance on thermal sources. This shift is expected to enhance energy security and contribute to global efforts to combat climate change. The growth in solar and wind energy will also create new investment opportunities and drive technological advancements in the energy sector. However, the continued reliance on coal and gas highlights the challenges Indonesia faces in transitioning to a fully sustainable energy system. The development of renewable energy infrastructure will be vital for meeting rising electricity demand and supporting economic growth.
What's Next?
Indonesia's renewable energy expansion will likely lead to increased investment in infrastructure and technology, as well as policy adjustments to support the transition. The government may introduce further incentives to encourage private sector participation and international collaboration. Monitoring and evaluation of the energy mix will be essential to ensure the successful integration of renewables and maintain grid stability. Stakeholders, including policymakers, investors, and environmental groups, will play a critical role in shaping the future of Indonesia's energy landscape.
