Indonesia’s Energy: What We Use, What We Have

When we talk about energy in Indonesia, the truth is, we’re incredibly rich. The real issue isn’t whether we have energy resources or not, but which ones we choose to use, and who they’re used for.

Our daily lives, from rushing to catch the KRL in the morning to scrolling TikTok before bed, are powered by energy. Lights turn on, motorcycles run, rice gets cooked, factories keep producing. But the energy behind all of this doesn’t come from just one source.

So let’s break it down, slowly.

For decades, Indonesia has relied heavily on fossil fuels, energy sources formed from the remains of living organisms millions of years ago, buried deep underground, then extracted and burned today.

There are three dominant ones.

1. First: Coal

Coal has long been the star of the show. It’s cheap, reserves are abundant, and it forms the backbone of Indonesia’s electricity system. Most of PLN’s power still comes from coal-fired power plants. Indonesia is even one of the world’s largest coal exporters.

The irony? While many countries are phasing coal out, Indonesia remains deeply dependent on it.

The problem is, coal is the dirtiest energy source out there. It produces massive carbon emissions, worsens air pollution that leads to respiratory illnesses, and leaves behind giant mining pits that damage ecosystems—and too often, take human lives.

2. Second: Oil

This is what keeps cars, motorcycles, planes, and ships moving. Indonesia used to be a major oil exporter. But today, production is declining while consumption keeps rising. We’ve become a net importer, and the state budget bleeds to keep fuel subsidies afloat. When global oil prices spike even slightly, people’s lives immediately feel the impact.

3. Third: Natural Gas

Often called “cleaner” than coal or oil—but still fossil-based. Gas is used for electricity, industry, and households (like LPG). Indonesia has sizable gas reserves, but distribution is deeply unequal. Some regions sit on gas wealth, yet their communities still live with unreliable electricity—or none at all.

At this point, many people ask:
“So what—do we even have another option?”

Here’s the plot twist: we do. And not just one. Plenty.

Indonesia is actually a renewable energy paradise—with energy sources that naturally replenish and are far more climate-friendly.

1. Let’s start with the most talked-about one: solar energy.

Indonesia lies along the equator. The sun shines almost all year round. Technically speaking, our solar power potential is massive—but only a tiny fraction has been tapped. Solar panels are still seen as expensive, even though global costs keep dropping. Demand in Indonesia is actually very high, with long waiting lists from households to industries.

So why the wait?
Quota policies from the state electricity company, PLN.
Why those quotas exist? We’ll unpack that in another article.

2. Next: water energy.

From major rivers to mountain waterfalls. Large-scale hydropower plants already exist, but there’s also huge potential for micro-hydro systems, especially for remote villages. This energy source is relatively stable, but problems arise when projects ignore ecosystems and local communities.

One example that gets it right is Kasepuhan Adat Gelaralam Village. For years, this Indigenous community in Sukabumi Regency has harnessed the flow of the Cisono River using a crossflow turbine micro-hydro power plant (PLTMh), supplying affordable electricity to more than 150 households.

3. Then there’s geothermal energy.

Indonesia sits on the Pacific Ring of Fire, which means we have an abundance of geothermal heat. This is one of our strongest cards. Our reserves are among the largest in the world. Geothermal power runs 24/7, independent of weather.

So what’s holding it back? High upfront costs and land conflicts, often overlapping with Indigenous territories and conservation areas.

4. And let’s not forget wind energy.

Not every region is suitable, but places like South Sulawesi and East Nusa Tenggara (NTT) have consistent wind patterns. Wind power plants already exist, though still on a limited scale.

5. Then there’s the often underestimated one: bioenergy.

From agricultural waste, organic trash, to vegetable oils. Bioenergy can offer a double solution, reducing waste while producing energy. In many rural areas across Indonesia, biogas has long been used by households and farmers for cooking and daily energy needs. Animal waste is processed into burnable gas, cutting pollution while strengthening local economies.

But if poorly managed, bioenergy can also drive deforestation and land conflicts.

So, if the question is:
“What kinds of energy does Indonesia actually have?”

The answer is: everything.
From the dirtiest to the cleanest.

The real problem isn’t a lack of resources, but political choices and development priorities.

So far, our energy system tends to favor options that are:

• fast,
• profitable for elites,
• and that preserve the status quo.

But an energy transition isn’t just about switching power plants. It’s about changing how we see energy, from a commodity to a basic right; from a tool of exploitation to a foundation for sustainable life.

And that’s where the most important question emerges: of all the energy sources we have, which one do we want to pass on to the next generation?

Because the future isn’t only about today.

Curious why clean and just energy is what we should be leaving behind? 

 Keep reading in the next article!

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