Current state, potential, and future prospects of renewable energy development in indonesia

Abstract

This study explores the critical question of how Indonesia can transition from fossil fuels to renewable energy to address rising greenhouse gas (GHG) emissions while meeting growing energy demands. As a resource-rich nation, Indonesia faces increasing energy consumption, which rose by 0.99% to 939.100 million BOE in 2021, with the transportation sector consuming 45.76% of oil-based energy. The research aims to analyze the current status, potential, and future development of renewable energy in Indonesia, updating data on its availability and utilization. It examines key renewable sources—hydro (75 GW), geothermal (23.7 GW), bioenergy (32.6 GW), solar (207.8 GW), wind (60.6 GW), and micro-hydro (19.3 GW)—totaling 419 GW of potential. The paper employs a systematic review, including topic identification, literature study, screening, analysis, and synthesis, to provide a comprehensive overview. It highlights Indonesia’s reliance on fossil fuels, with coal as the largest energy supplier in 2021 (558.782 million BOE), and outlines the government’s energy transition policies targeting a 23% renewable energy mix by 2025 and 31% by 2050. Key findings emphasize the underutilization of renewable energy despite vast potential, driven by high production costs and limited funding. The study underscores the need for optimized renewable energy strategies to achieve net-zero emissions by 2060, supporting sustainable economic growth and environmental preservation through enhanced policy and investment.