Indonesia electricity demand projected to surge amid energy transition

Indonesia is facing a significant surge in electricity demand, projected to rise from 539 TWh in 2025 to 1,813 TWh by 2060. This growth is driven by industrial expansion, household electrification, and the rise of electric vehicles (EVs), which are expected to account for approximately 11 percent of national demand.

To meet this need, PT PLN (Persero) is focusing on integrating renewable energy, including a phased 100 GWp solar energy development plan. In Bali, EV adoption has reached 17,725 units as of October 2026, prompting calls for expanded charging infrastructure through both state and private investment.

Experts suggest a strategic shift in government policy, advocating for electric vehicle subsidies to move from private passenger cars toward the logistics sector. Researchers from Universitas Gadjah Mada argue that electrifying freight fleets would provide broader economic benefits and more equitable policy impacts compared to current subsidies that primarily benefit high-income individuals.