Jakarta. Investments in Indonesia's energy and mineral resources sector increased by 11%, reaching $30.3 billion (Rp 471 trillion), compared to the $27 billion investment reported in 2022. Meanwhile, the renewable energy mix continues to grow but is still far from its intended target for 2025.

"Investment in the energy and mineral sector reached $30.3 billion, with the oil and gas sector still dominating with a contribution of $15.6 billion," the Energy and Mineral Resources (ESDM) Minister, Arifin Tasrif, said on Monday.

The next biggest contributor to investments was the mineral and coal subsector with a contribution of $7.46 billion. Additionally, the electricity subsector contributed $5.8 billion, while the new and renewable energy (EBT) sector reached $1.5 billion.

As of the end of 2023, the energy mix from new and renewable energy reached 13.1 percent, equivalent to 238.1 million barrels of oil equivalent (MBOE). However, more efforts are needed to attain the 23 percent target.

"Concerted efforts are necessary to meet the target set for 2025," Arifin said.

Arifin said that the Ministry has prepared several measures to progress the renewable energy mix. These measures include the conversion of diesel power plants to EBT and the implementation of the rooftop solar panel program, aiming for a capacity of 3.6 GW by 2025.

In addition, the Ministry continues to run the mandatory B35 biodiesel program, provide renewable energy access in remote locations, promote biomass co-firing in coal-powered power plants, and conduct geothermal exploration.

The installed capacity of EBT power plants reached 13,155 MW in 2023 with an additional potential capacity of 539.52 MW. Hydropower emerged as the largest contributor with a capacity of 6,784.2 MW, followed by bioenergy power plants at 3,195.4 MW, geothermal power plants at 2,417.7 MW, and rooftop solar power plants at 573.8 MW. The Ministry targets an increase in EBT power plant capacity to 13,886 MW by 2024.

After being impacted by the Covid-19 pandemic in 2020, Arifin said that the energy sector began to recover in 2021-2022.

"We have a fairly good trend. Investment was rising in 2018 and 2019. Then in 2020, it was affected by Covid-19. Recovery started in 2021, and then experienced a high surge in 2023," he said.

Furthermore, Arifin revealed that non-tax revenue (PNBP) achieved an increase of 116% in 2023, reaching Rp 300 trillion, compared to Rp 259.2 trillion in 2022.