Energy & Mineral Resources
From The Report: Indonesia 2024
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Indonesia is among the world’s largest and fastest-growing energy consumers. While natural gas and oil production have declined over the past decade, coal production has surged to meet both domestic and export needs. Renewable energy, however, is on the rise. The 2022 energy transition plan and the 2023 green energy investment fund are set to accelerate renewable energy adoption through 2030. Indonesia’s vast renewable potential, including the second-largest installed geothermal capacity globally, abundant solar energy and substantial hydropower resources, positions the country to play a key role in the global energy transition.

The Net Zero Emissions Roadmap aims to increase investment in these sectors, promoting a cleaner energy future. Additionally, Indonesia is well-positioned to capitalise on global demand for minerals like copper, nickel and cobalt, essential for renewable technologies. The mining, refining and export of these minerals are expected to boost economic growth and employment. Incoming President Prabowo Subianto has signalled his intention to continue Jokowi’s focus on industrial downstreaming in the mining sector, which would add value to Indonesia’s raw materials. This strategy could generate additional revenue that would help fund renewable energy projects. As Indonesia transitions toward green energy, its mineral wealth remains a crucial driver of economic growth and investment.

Articles from this Chapter

Overview

Untapped potential: Mineral wealth is helping the country localise its value chain and actualise its vast renewable energy potential
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Indonesia is one of the world’s largest and fastest-growing energy consumers. While natural gas and oil production have been falling over the past decade, coal production has risen to satisfy both domestic and export demand. Renewable energy has seen steady growth, with an energy transition plan unveiled in 2022 and a green energy investment fund announced in 2023 set to accelerate the uptake of renewables through to 2030. Indonesia will also benefit from global demand for copper and nickel, whose mining, refining and exports should boost economic growth and employment. Structure & Oversight Law No. 22 of 2001 is the primary law governing…

Analysis

Transition planning: Alternative energy demand and production are picking up pace in line with the shift away from hydrocarbons
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The energy transition continued apace in 2023 despite ongoing geopolitical tensions, disruptions to supply chains and inflationary pressures – all of which translated into high energy prices around the globe. Even though prices descended after reaching historic highs in 2022, they remain higher than three years prior, which may mark an inflection point in shifting the global energy system away from a dependence on hydrocarbons and towards lower-cost clean energy resources. Hydrocarbons are unevenly distributed around the world, require supply chains that are vulnerable to disruption, and carry the financial uncertainties associated with the…