Renewable Energy: A Strategic Response to the Global Energy Crisis

Mei 26, 2025 | Berita

Strategic Global Energy Crisis

The global energy crisis is an escalating challenge, and Indonesia is no exception. As fossil fuel supplies dwindle and their environmental toll intensifies, the urgency to transition to renewable energy has never been greater. For Indonesia, this transition is no longer just an environmental choice—it is a strategic necessity.

The energy crisis of 2022–2023 marked a turning point, with disruptions in natural gas supplies and cuts in oil production occurring just as global energy demand surged. In Indonesia, energy consumption has consistently increased since 2016, with a brief decline in 2020 due to the COVID-19 pandemic. According to the Energy Flow Balance report by the Central Statistics Agency (BPS), Indonesia’s net domestic energy use reached 9,163 petajoules.

Indonesia’s vast natural resources position the country to become a leader in renewable energy. Recognizing this potential, the government has committed to diversifying its energy mix and accelerating the development of new and renewable energy (NRE) through comprehensive and forward-looking policies.

This transition is about more than just cleaner energy—it’s about securing Indonesia’s long-term energy future, building economic resilience, and advancing sustainable development. Renewable energy should not be viewed as a secondary option, but rather as a cornerstone of national policy.

The Role of Renewable Energy in Addressing the Energy Crisis

An energy crisis is broadly defined as a condition of energy shortage, while an energy emergency refers to the disruption of energy supply caused by the breakdown of energy infrastructure. These definitions are outlined in Article 6 paragraphs (1) and (2) of Law No. 30 of 2007 on Energy (“Energy Law”).

In this context, renewable energy—derived from inexhaustible natural sources such as solar, wind, geothermal, bioenergy, and small-scale hydropower—plays a critical role in strengthening Indonesia’s energy resilience. During times of crisis, renewable energy is not merely an alternative; it is a structural solution that reduces reliance on fossil fuels and mitigates exposure to global energy price volatility.

The strategic adoption of renewable energy offers several advantages:

  1. Local accessibility since renewable energy resources are abundantly available across Indonesia, including in remote areas that are not yet connected to the national grid. This provides a unique opportunity for decentralized energy development.
  2. Economic feasibility as advances in clean energy technology have made renewable energy systems more affordable and efficient, turning the energy transition into an economically sound decision.
  3. Job creation because the renewable energy sector supports employment across research, manufacturing, installation, and maintenance—contributing to sustainable economic growth.

Indonesia faces a significant challenge in meeting its growing energy demands, driven by population growth and industrial expansion. With energy consumption increasing by an estimated 7% annually, failure to diversify energy sources could lead to future supply deficits.

To address this, the government has set clear targets through Government Regulation No. 79 of 2014 on National Energy Policy (“PP 79/2014”), aiming for renewable energy to constitute at least 23% of the national energy mix by 2025 and 31% by 2050.

The path forward is clear: renewable energy must be embraced not only as a safeguard against future crises, but as a foundation for Indonesia’s long-term energy security and sustainable development. 

Regulatory and Policy Framework on Renewable Energy: Anticipating Indonesia’s Energy Crisis

In an effort to address domestic energy challenges, the President of Indonesia established the National Energy Council (Dewan Energi Nasional – DEN) as a strategic body responsible for designing and formulating national energy policies. A key mandate of this institution is to promote the development of renewable energy as a long-term solution to potential energy crises.

According to Article 12(2) of the Energy Law, the National Energy Council is tasked with the following:

  1. Formulating and proposing the National Energy Policy (Kebijakan Energi Nasional – KEN) to be approved by the government and Parliament as outlined in Article 11(2);
  2. Determining the General National Energy Plan (Rencana Umum Energi Nasional – RUEN);
  3. Establishing contingency measures for energy crises and emergencies;
  4. Overseeing the cross-sectoral implementation of energy policies.

To support the implementation of national energy strategies, the Energy Law also mandates the preparation of both national and regional energy plans—RUEN and RUED (Rencana Umum Energi Daerah)—through 2050. These planning documents serve as blueprints for energy transition at the national and subnational levels.

Presidential Regulation No. 22 of 2017 on the National Energy Plan (“Perpres 22/2017”) establishes RUEN as the operational framework of the national energy policy. It serves to coordinate renewable energy development across sectors, aiming to achieve energy independence and security in support of sustainable national development.

RUEN outlines concrete steps for advancing renewable energy technologies, including the construction of solar power plants, geothermal facilities, and bioenergy systems. The policy framework places renewable energy at the center of Indonesia’s strategy to reduce greenhouse gas emissions, diversify energy sources, and strengthen long-term energy resilience.

By integrating legal mandates with a forward-looking policy approach, Indonesia positions renewable energy not just as a solution to the energy crisis—but as a key driver of national progress.

Renewable Energy Project Initiatives in Indonesia

Indonesia’s commitment to developing renewable energy  is evident through various large-scale projects that reflect a national shift toward clean energy. Key initiatives currently underway include:

1. Solar Power Projects (Pembangkit Listrik Tenaga Surya – PLTS)

Solar energy is a national priority due to Indonesia’s high solar potential, averaging 4.8 kWh/m² per day. Major projects include:

  1. Cirata Floating Solar Power Plant (PLTS Terapung Cirata) in West Java, a collaboration between state energy company PT PLN and an international consortium, this project is set to become Southeast Asia’s largest floating solar facility, with a planned capacity of 145 MW..
  2. Solar Rooftop Program, which program promotes the adoption of solar panels in residential and government buildings. It is supported by PT PLN’s Net Metering Incentive, which allows users to offset their electricity bills with solar generation.

2. Geothermal Energy Development

Indonesia possesses the world’s second-largest geothermal reserves. The government aims to achieve 7,241 MW of installed geothermal capacity by 2025. Notable projects include::

  1. Sarulla Geothermal Plant (North Sumatra) with a capacity of 330 MW that makes it one of the world’s largest geothermal energy projects
  2. Wayang Windu and Kamojang Plants (West Java), early-stage facilities that laid the foundation for Indonesia’s geothermal industry.

3 .Bioenergy and Waste-to-Energy Projects

Bioenergy development in Indonesia follows a circular economy approach, utilizing palm oil waste, organic waste, and biomass to generate electricity. Examples include:

  1. Waste-to-Energy (WTE) Plants in Surakarta and Bekasi, which convert municipal solid waste into electricity while reducing landfill volumes.
  2. Biodiesel Programs (B35 and B40), which promote the use of biofuel blends in the transportation sector, aiming to cut fossil fuel imports and reduce carbon emissions.

Renewable energy in Indonesia is essential for addressing the ongoing energy crisis, reducing the country’s reliance on fossil fuels, and cutting carbon emissions. It strengthens energy security, supports sustainable development, and drives the growth of the green economy. 

Backed by strong regulatory frameworks—such as the Energy Law ( and the National Energy Plan (RUEN)—Indonesia’s renewable energy strategy is aligned with long-term national goals. Major initiatives in solar energy, geothermal power, and bioenergy showcase the government’s commitment to accelerating the energy transition. These efforts position Indonesia as a regional leader in clean energy development.***

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