As the fourth most populous country in the world, Indonesia is expected to become the largest economy by the middle of this century. Current and future moves could have a major impact on the world's energy markets to realize common climate goals. Indonesia has been working towards achieving net-zero emissions by 2060 or sooner, as part of its development efforts to become an advanced economy by 2045.  According to the Ministry of Energy and Mineral Resources, Indonesia's energy mix is dominated by coal and petroleum. In 2023, Indonesia's primary energy derived from coal will reach 40.46%, while oil will reach 30.18%. Meanwhile, the natural gas mix is 16.28%, and new and renewable energy (EBT) in 2023 is the smallest, namely 13.09%. The high use of fossil raw materials resulted in energy sector emissions ranging from 600 million tons of carbon dioxide (CO2) until Indonesia was named the country with the ninth largest carbon emission in the world.

Net Zero Emissions

The energy transition to net zero emissions provides great and diverse opportunities for Indonesia's economic progress to achieve the 2045 Advanced Economy target. Net zero emissions in the context of climate change are the condition that the amount of greenhouse gas emissions released into the atmosphere is equal to the amount of emissions removed from the atmosphere through mitigation measures. Net zero emissions are sought to reduce or even eliminate greenhouse gas emissions so that there is no increase in greenhouse gas emissions. Indonesia's potential to achieve net zero emissions is very large because of the abundance of potential renewable natural resources. Indonesia is among the top five countries in Asia-Pacific with very significant renewable energy capacity.

Figure 1.1: 2020 installed capacity compared to estimated renewable energy capacity potential (Source: iesr.co.id)

Benefits of Implementing Sustainable Green Energy

According to Energy Tracker Asia (2022), the advantages of implementing sustainable green energy can be seen from various points of view. Economic, political, and welfare point of view. By 2030, replacing fossil fuels with renewable energy could save up to USD $1.7 billion per year. If the cost of air pollution is taken into account, this number increases between USD $15 to 50 billion. In addition, greater use of renewable energy will result in large reductions in energy system costs. On the other hand, renewable energy can also contribute to creating more jobs and empowering technological advancements.


Types of Renewable Energy Potential in Indonesia

According to research from iesr.id (2021), potential new and renewable energy in Indonesia includes:

  1. Solar Power

Indonesia has the highest solar power compared to other renewable energy sources. The highest potential comes from scrubland areas with a capacity of 4,179.6 GW. The top three provinces as solar power plants are Kalimantan, Nusa Tenggara, and Papua Indonesia has the highest solar power compared to other renewable energy sources.

  1. Hydro power

Hydroelectric power plants can be used as solar power production that has cloud cover, temperature, and humidity. The potential of electricity sources can reach 28 GW with the highest potential in Papua, North Sumatra, West Java, and almost all tributaries. Meanwhile, the potential for micro hydropower is of higher value in Indonesia's river network. If optimizing power plants to ensure the sustainability of river ecosystems, electricity can be generated up to 6 GW with the highest potential in Papua, North Sumatra, and almost all provinces in Sulawesi.

  1. Wind Power

The location of Indonesia which is on the equator has warm air and low pressure resulting in Indonesia not being windy like in northern and southern hemisphere countries. The wind potential in Indonesia is only 4.9 m/s. With limited wind speed, South Sulawesi, Nusa Tenggara, and Maluku have high potential if they install wind turbines with a hub height of 100 meters.

  1. Biomass power

Biomass power plants are not very dependent on weather conditions such as solar, wind, and hydro, or so-called Variable Renewable Energies (VREs). The potential for crop waste, such as rice, cocoa, palm oil, and coffee waste, has a potential of 23.4 GW. While acacia which is wood biomass has a potential of 7.3 GW. Provinces that can utilize their biomass raw materials optimally are provinces in Sumatra and Kalimantan because they have the highest palm oil production in Indonesia.


Net Zero Emissions Technology

To achieve net zero emissions, supporting technology is needed so that there is a balance between the amount of greenhouse gases produced and the amount removed from the atmosphere, these technologies include:

  1. Carbon Capture & Storage (CCS)

Carbon capture & storage (CCS) involves capturing emissions of dioxane carbon (CO2) produced from industrial processes or power plants and storing them underground to prevent them from entering the atmosphere

  1. Green Hydrogen

Green hydrogen is produced through electrolysis, using renewable energy sources to break water into hydrogen and oxygen so that it can be used as an environmentally friendly energy carrier

  1. Electric Vehicles (EV)

Electric Vehicles (EVs) vehicles that use electricity as a power source, usually stored in batteries, resulting in lower carbon emissions

  1. Direct Air Capture (DAC)

Direct Air Capture (DAC) technology that works by capturing CO2 from the atmosphere with special devices that can be used in conjunction with carbon storage to reduce CO2 concentrations



Based on its energy sources, Indonesia has great potential to lead the energy transition to net zero emissions. Although still dominated by coal and petroleum, the country is aiming to reach net zero emissions by 2060 or sooner. The potential of renewable natural resources, such as solar, water, wind, and biomass energy, can be optimally utilized. The use of renewable energy was identified as key to achieving the target, with significant economic benefits, creating jobs, and supporting technological progress.


Beyond 443 GW – Potensi Energi Terbarukan Indonesia – iesr.or.id

IEA (2022), An Energy Sector Roadmap to Net Zero Emissions in Indonesia, IEA, Paris




This article is written by :
Annisa Rahma Dhania

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