Indonesia advances energy transition through renewables and decarbonization

Indonesia is advancing its energy transition through several strategic initiatives focused on renewable resources and decarbonization. The government is targeting the preparation of 2 million hectares of land for bioethanol feedstock, primarily utilizing sugarcane, cassava, and corn to bolster energy independence.

In the renewable sector, officials are pushing for the development of up to 100 GWp of solar power (PLTS) to provide electricity to over 10,000 locations currently lacking access, particularly in eastern Indonesia. Additionally, hydropower is being highlighted as a critical source of stable, 24-hour clean power for large-scale industrial needs like smelters.

Major energy players are reporting progress in sustainability. PT Pertamina (Persero) has exceeded its 2026 emission reduction targets, with its low-carbon business reaching 101% of its goal. Meanwhile, PT Pertamina Trans Kontinental (PTK) is conducting social responsibility programs, including the revitalization of 57 libraries in its operational areas to support maritime literacy. In the industrial sector, PT Pertamina Gas (Pertagas) is preparing to increase gas pipeline and compressor capacity at the Sei Mangkei Special Economic Zone to accommodate a projected influx of 200 factories by 2031.