Indonesia is working towards boosting its renewable energy production to meet the rising demand for electricity. Currently, the country generates only 12.5 gigawatts (GW) of electricity from renewable sources, out of a potential 3 thousand GW. In line with the energy transition plan towards achieving net-zero emissions by 2060, the government aims to supply the entire electricity demand with around 700 GW of renewable energy capacity.
Minister of Energy and Mineral Resources, Arifin Tasrif, announced the goal of increasing renewable energy production to 21 GW by 2030 during the Green Economy Forum. This target aligns with the Electric Power Provision Effort Plan 2021-2030 of PLN, the national electricity company.
To achieve this objective, the government plans to develop super grid and smart grid infrastructures. These infrastructures will enhance connectivity between islands, address intermittency issues, and manage disparities between local renewable energy sources and areas with high electricity demand.
The decreasing cost of renewable power plant development has opened up opportunities for renewable energy growth in Indonesia. Tasrif highlighted the substantial drop in lithium battery prices, which have decreased by up to 97 percent in the past three years.
In addition to these efforts, the Ministry of Energy and Mineral Resources has launched the Renewable Energy Based on Industrial Development (REBID) program. The program utilizes various renewable energy sources such as hydro, solar, geothermal, biomass, and hydrogen power generation to support the green energy industry. The government sees great potential for green industry development not only in Kalimantan Island but also in Papua Island, where solar and hydro energy potential reaches 380 GW.
Currently, Indonesia heavily relies on fossil-based energy, with coal accounting for 42.4 percent of energy production and crude oil contributing 31.4 percent. However, the national production of crude oil will not be sufficient to meet the country's demand in the future. Given the continuous growth in energy consumption, ensuring energy security has become a critical concern. Therefore, transitioning to new and renewable energy sources has become imperative for Indonesia's sustainable future.
