Jakarta. Indonesia will prioritize the development of domestic renewable energy sources to enhance national energy security, Energy and Mineral Resources Minister Bahlil Lahadalia said on Wednesday, while pledging to keep energy prices affordable for the public.

Speaking at the 2025 Energy and Mineral Festival at Hutan Kota Plataran in South Jakarta, Bahlil said that Indonesia must move toward energy independence by tapping into its vast renewable resources—including wind, geothermal, solar, and nuclear power—as part of the global shift to net zero emissions.

“We have agreed to reduce our net zero emissions by 2060 through a gradual energy transition from fossil fuels to renewables,” he said.

Despite this commitment, Indonesia’s clean energy deployment still lags behind its targets. Renewable energy accounted for just 11–12 percent of the national energy mix in 2020, rising modestly to around 14 percent by 2025, well below the government’s 23 percent target by 2025 and 31 percent by 2050.

To catch up, the government’s Electricity Supply Business Plan (RUPTL) 2025–2034 lays out a roadmap to add 42.6 gigawatts (GW) of renewable capacity, including 17.1 GW of solar, 11.7 GW hydro, 7.2 GW wind, 5.2 GW geothermal, and 0.9 GW of bioenergy. This would account for approximately 76 percent of all new power capacity additions and increase renewables’ share to 35 percent by 2034.

Still, challenges remain. Bahlil said transitioning to renewable energy is not only a technical and logistical challenge but also an economic one.

“We need advanced technology, but it must be matched with prices that are economically feasible, so it doesn't burden the public or the government,” he said, adding that the transition must align with the nation’s financial capacity.

Indonesia possesses massive untapped renewable potential—an estimated 3,600–3,700 GW across solar, wind, and hydropower—yet only about 333 GW is considered financially viable under current market and policy conditions, according to the Institute for Essential Services Reform (IESR).

Indonesia has committed to achieving net zero emissions by 2060 or sooner, aligning with its status as a signatory to the Paris Agreement. However, concerns persist over the implementation of key green financing initiatives such as the Just Energy Transition Partnership (JETP), a $21.5 billion aid package backed by the International Partners Group (IPG), which includes the United States, Japan, France, and the European Union. Delays in regulatory reform, disbursement mechanisms, and project readiness have raised questions about the program’s execution.

To meet its climate goals, Indonesia requires enormopus funding. A recent report by global consultancy Kearney estimates that the country will need up to US$2.4 trillion—or around Rp38,000 trillion—between 2022 and 2060 to achieve net-zero emissions. This translates to approximately US$62 billion in investment annually.

Nevertheless, recent investment performance has shown progress. In 2024, the renewable energy and energy conservation (EBTKE) sub-sector attracted US$1.77 billion in investment—143.4 percent of the government’s target of US$1.23 billion. This marks a significant improvement from 2023, when investment reached just US$1.48 billion, or 33.6 percent of the US$4.39 billion target.

Bahlil said that energy affordability remains a top concern amid these ambitions. “We cannot let this transition become a burden for society, especially for the government,” he said.

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