Indonesia targets 21% renewable energy mix by 2026

Indonesia is accelerating its transition to renewable energy to bolster national sovereignty and address global geopolitical and climate pressures. The government has set a target for renewable energy to comprise 18% to 21% of the national energy mix by 2026.

According to Ministry of Energy and Mineral Resources data, the country possesses a total renewable energy potential of 3,687 GW. Solar energy is the most abundant source at 3,294 GW, followed by wind (155 GW), hydropower (95 GW), marine energy (63 GW), bioenergy (57 GW), and geothermal (24 GW). To support this, the Ministry is pushing for the development of up to 100 GW of solar power, with an initial phase of 17 GW supported by 33 GW of battery storage systems.

Despite this potential, several challenges remain, including regulatory hurdles, high initial investment costs, and the economic competitiveness of renewables against subsidized fossil fuels. Additionally, infrastructure readiness and land requirements for solar projects present technical obstacles. To reduce fossil fuel dependency, the government is also implementing the B50 biodiesel mandate, scheduled for July 2026.