Can Indonesia be part of the energy transition?

Indonesia can be part of the solution for the energy transition by leading the discussion and implementation and forging collaboration. McKinsey: What role can Indonesia play in fostering ecosystem development to advance energy security, the energy transition, and broader technology enablement goals in Southeast Asia and beyond?

What is Indonesia's Energy Strategy?

Indonesia is projected to be among the top-five largest economies by 2045, with the population reaching approximately 324 million people. With that in mind, a particular focus of our strategy will be accelerating the energy transition to ensure energy security and, at the same time, meeting our emissions reduction target.

Why is battery energy storage system important in Indonesia?

However, given the challenge of Indonesia’s geological landscape, with many off-grid and remote areas, there is growing intermittency issue that hamper the development of solar and wind generation. Hence, the battery energy storage system (BESS) technologies have a critical role in the development of Indonesia’s renewable energy.

Can Indonesia meet the electricity demand of 806 TWh in 2040?

These targets mean Indonesia can meet the projected electricity demand of 806 TWh in 2040, if renewable energy share reaches 65%. Solar would account for 20%, wind for 11%, and other renewables—such as nuclear, geothermal, bioenergy and hydro—would make up 34%.

Should Indonesia consider community-based energy producers?

Indonesia should consider community-based energy producers, not just big power plants, in its transition to clean energy, according to think tank Center of Economic and Law Studies (Celios). This approach could generate $683 million (IDR10.6t) in economic value over 25 years, creating 96 million jobs across various sectors, Celios said.

Why is solar and wind energy important in Indonesia?

Solar and wind energy are some of Indonesia’s most developed renewable energy resources generating 207 GW and 135 GW of power respectively. However, given the challenge of Indonesia’s geological landscape, with many off-grid and remote areas, there is growing intermittency issue that hamper the development of solar and wind generation.