indonesia

potential benefits of nuclear power plants to the country’s energy security, among other factors. 16
Indonesians also express concerns about the environmental impact of operating coal power plants,
even though the use of coal in power plants is not currently extensive in Indonesia.
Sustainability
Finally, even as Indonesia looks to address the challenges of availability, accessibility,
affordability, and acceptability, a longer-term question for the country will linger about the
sustainability of its energy policies. The problem of sustainability lies in the fact that Indonesia’s
energy mix is heavily dominated by fossil fuels (almost 95%). As Indonesia looks to develop access
to energy in its outer islands, this area is still consuming expensive fuels (such as diesel oil). On
the consumption side, energy is still being consumed inefficiently, as indicated by Indonesia’s poor
level of energy intensity compared with many other Asian countries. Efforts to promote energy
conservation are still limited, both by sectors and by regions.
Renewable Energy: Potential and Challenges
The Potential of Renewable Energy
Given this overarching context and the need for resources that are available, accessible,
affordable, acceptable, and sustainable, renewable energy has the potential to play a critical
role in strengthening the country’s energy security. Renewable energy is clean and sustainable,
and its development could bring other benefits as well. For example, the large-scale creation of
green jobs could help Indonesia combat poverty. Renewable energy development, however, faces
several challenges. Indonesia’s reserves for renewable energy are diverse, quite large, and scattered
throughout the archipelago in supplies of geothermal, solar, hydropower, wind, tidal, and
bioenergy resources.
Geothermal. Geothermal is a renewable energy resource with great potential in Indonesia
and the closest one to actually producing power. Indonesia’s reserves total approximately
29 gigawatts (GW), which is equivalent to 40% of the world’s reserves, and are distributed across
the country. The largest reserves are close to the electricity load centers of Java, Bali, and Nusa
Tenggara (11,629 MW) and Sumatra (12,837 MW). But presently only 1,404 MW of geothermal
power plants have been installed across Indonesia, representing only 5% of the country’s potential. 17
Solar. Situated in the tropical region surrounding the equatorial line, Indonesia has considerable
potential to use solar energy. The average daily radiation in Aceh and Papua ranges from
4–6 kilowatt hours per square meter. The application of solar energy throughout the archipelago
unfortunately is still very limited, with the current installed photovoltaic capacity standing at only
around 30 MW. However, PLN (the state-owned electricity company) and local and provincial
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16 Additionally, development of the country’s first nuclear power plant requires the president’s approval before any team can be established to
build the plant.
17 Hanan Nugroho, “Renewable Energy in Indonesia: Present Status and Prospects,” Economist, Intelligence Unit, January 15, 2014; Ministry of
Energy and Mineral Resources (Indonesia), “New and Renewable Energy, and Energy Conservation Statistics 2013,” 2014; and Ministry of
Energy and Mineral Resources (Indonesia), “2014 Handbook of Energy and Economic Statistics of Indonesia.”
SPECIAL REPORT u DECEMBER 2015