- Indonesia has set ambitious targets to increase its renewable energy share to 23% by 2025 and 31% by 2050, focusing on solar, wind, bioenergy, and geothermal sources.
- At the 2nd Indonesia-Africa Forum, Indonesia explored new partnerships with African countries, including Mozambique and Kenya.
Indonesia has set ambitious renewable energy targets as part of its commitment to sustainability and carbon reduction. According to the National Energy General Plan and the Electricity Supply General Plan, the country aims to increase the renewable energy share in its energy mix to 23% by 2025 and 31% by 2050. This includes solar, wind, bioenergy, hydropower, and geothermal energy investments.
The RUPTL outlines significant developments in renewable energy capacity from 2021 to 2030, focusing on solar, wind, and bioenergy projects. These efforts align with Indonesia’s goal to meet its Nationally Determined Contributions (NDCs) under the Paris Agreement by reducing greenhouse gas emissions.
Indonesia is implementing various policies to support renewable energy development and accelerate the energy transition, including fiscal incentives, financing support, and regulations favouring investments. The country also enforces mandatory use of renewable energy in the electricity and fuel sectors, such as biofuel blending.
Indonesia is actively seeking international cooperation to bolster its renewable energy sector. At the 2nd Indonesia-Africa Forum (IAF) in Bali on September 3, 2024, Mozambique’s National Energy Director, Marcelina Mataveia, highlighted the country’s plans to add 2.5 gigawatts of new power generation capacity over the next decade, including a gas-fired power plant and wind power plant. Mozambique is keen to collaborate with Indonesia to leverage its expertise in developing the gas industry.
Kenya’s Cabinet Secretary for Energy and Petroleum, J. Opiyo Wandayi, discussed the country’s progress in renewable energy. Forty per cent of its power comes from geothermal sources. Kenya aims for a 100% green energy transition by 2030 and is looking to Indonesia to support achieving the final 7% transition.
The IAF 2024 also provided a platform for the Indonesian Ministry of Energy and Mineral Resources to explore partnerships with African countries. Secretary General Dadan Kusdiana proposed sharing experiences and establishing long-term partnerships to foster economic growth in both regions.
Indonesia has made notable strides in biodiesel development. Currently, 35% of palm oil-based biodiesel is blended with diesel, with plans to increase this to 40% next year. The country is revising its renewable energy regulations and expanding cooperation with developed nations on technology and financing to achieve net-zero emissions by 2060.
Indonesia’s cooperation with African countries spans various sectors, including oil and gas exploration, mining, and renewable energy. Pertamina, Indonesia’s state-owned oil and gas company, has expanded its African presence and signed a memorandum of understanding (MoU) with Tanzania Petroleum Development Corporation (TPDC) at IAF 2024. This MoU includes knowledge exchange, capacity building, and collaborative research to enhance sustainable energy practices and explore investment opportunities.
Through these initiatives, Indonesia aims to strengthen its role in global renewable energy efforts and contribute to Africa’s energy development.