Attracting Energy Transition Investment Opportunities
Mar 26, 2025 · IESR''s Energy System Transformation Program Manager, Deon Arinaldo, said that although Indonesia''s renewable energy technical potential reaches more than 3,700 GW,
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6 Frequently Asked Questions about “Jakarta has wind power solar power storage and transmission”
Is Indonesia a good place for wind energy development?
Indonesia's vast coastline and numerous islands make it an attractive location for wind energy development. Wind energy has significant potential in certain regions of the country, particularly in East Nusa Tenggara, South Sulawesi, and West Java.
Could solar and wind be the backbone of Indonesia's energy transition?
However, advancements in energy storage technology, such as battery energy storage systems and grid-forming inverters, could enable solar and wind, together boasting a technical potential of 3.4 TW, to serve as the backbone of Indonesia's energy transition.
How important is solar energy in Indonesia?
Despite its vast potential, solar energy currently plays a minor role in Indonesia's energy mix. As of 2022, solar power accounted for less than 1% of the country's total energy capacity (MEMR, 2022). However, the government has recognized the importance of solar energy and has taken steps to encourage its development.
What is Indonesia's Energy Future?
Indonesia's renewable energy sector is undergoing a period of transformation as the country seeks to diversify its energy mix and reduce its reliance on fossil fuels. Solar, wind, geothermal, bioenergy, and marine energy all hold significant potential to contribute to Indonesia's energy future.
Could offshore wind energy develop in Indonesia?
government is also exploring the possibility of offshore wind energy development, which could tap into stronger and more consistent wind resources. The primary challenges for wind energy development in Indonesia include site selection, infrastructure development, and high initial investment costs.
Does Indonesia have a wind power plant?
However, the country has made notable progress in recent years. The Sidrap Wind Farm in South Sulawesi, which has a capacity of 75 MW, became operational in 2018 and was the first utility-scale wind power plant in Indonesia (Darmawan, 2018).