Indonesia plans to increase use of renewable energy

Indonesia is planning to increase the use of renewable energy in the near future amid rising energy demand.


The government aimed to increase the proportion of renewable energy usage to 25 percent within the next 10 years from the current level of less than 10 percent, Minister of Energy and Natural Resources Sudirman Said said here on Tuesday.

“This initiative requires consistency as its result can be enjoyed in a mid- or long-term period,” he said.

Indonesia, an archipelago country, has huge potential for development of renewable energy sources, including wind power, hydropower, geothermal, biomass and solar energy, but the use of the sources remains low in part due to high costs of outputs of the energy sources.

“(Therefore), the government has slashed subsidy on the energy sector, particularly on fossil fuel,” Said said.

Indonesia, the world’s biggest producer of crude palm oil (CPO), has set aside some of the country’s CPO output for bio fuel production.

The country has only a total of 3.7 billion barrels of oil reserve that can be economically explored, according to data from the ministry.

With moderate economic growth, Indonesia’s energy demand grows at around 10 percent annually, according to government data.