Indonesia energy transition outlook

Indonesia is key to the energy transition. It has the highest energy consumption among the Member States of the Association of Southeast Asian Nations (ASEAN), and its energy use is set to rise significantly as its economy and population grow in the coming decades. With an abundance of renewable resources, Indonesia is uniquely positioned to develop a sustainable energy system based on renewable energy that can support economic development and address climate change, whilst also achieving energy security, universalisation and affordability goals. This outlook provides a comprehensive, renewables-focused, long-term energy pathway for the transition to a cleaner and more sustainable energy system in Indonesia. It explores end-use sector electrification, the rapid expansion of renewable generation, energy efficiency solutions, the role of emerging technologies such as clean hydrogen and batteries, as well as the importance of expanding regional power sector integration, both within the country and with neighbouring countries. It also presents sector-specific technological pathways and investment opportunities that will help Indonesia to accelerate its energy transition. Finally, it summarises key challenges and recommendations to enable Indonesia to achieve an inclusive and sustainable energy transition.