Buku Energi Outlook 2022 Versi Bhs Inggris
Buku Energi Outlook 2022 Versi Bhs Inggris
Buku Energi Outlook 2022 Versi Bhs Inggris
SECRETARIATE GENERAL
THE NATIONAL ENERGY COUNCIL
INDONESIA ENERGY
OUTLOOK
2 0 2 2
SECRETARIATE GENERAL
THE NATIONAL ENERGY COUNCIL
ISSN 2527 - 3000
SECRETARIATE GENERAL
THE NATIONAL ENERGY COUNCIL
INDONESIA ENERGY
OUTLOOK
2 0 2 2
Arifin Tasrif
In Energy Outlook 2022, the energy supply and demand projection are carried out for the
next 10 years in two (2) scenarios namely Business as Usual (BaU) which uses the existing
policy and Optimistic (OPT) scenario which uses assumptions toward developed country
2045 and Net Zero Emission (NZE) 2060. Next, the projection from the two scenarios will be
compared with the projection that has been set in National Energy General Planning (RUEN).
In this 2022 publication, Indonesia Energy Outlook presents the result of projection based
on 5 regions namely Sumatra, Java-Bali, Kalimantan, Sulawesi and Nusa Tenggara, Maluku
and Papua (NUSMAPA).
Djoko Siswanto
ADVISOR
Member of the National Energy Council from Industrial Stakeholder
Herman Darnel Ibrahim
SUPERVISOR
Head of Energy Policy and Assembly Facilitation Bureau
Yunus Saefulhak
WRITERS
Suharyati
Nurina Indah Pratiwi
Sadmoko Hesti Pambudi
Jamaludin Lastiko Wibowo
Fawwaz Dzakwan Arifin
Azhari Sauqi
Joel Theodorus Damanik
Daud Bonatua Tyson Pangaribuan
Nanang Kristanto
ACKNOWLEDGEMENT
We would like to convey out gratitude to all related parties for the inputs and suggestions in
formulating Indonesia Energy Outlook 2022:
- Members of the National Energy Council from stakeholders;
- Directorate General of Oil and Gas, Directorate General of Electricity, Directorate
General of Mineral and Coal, Directorate General of New Renewable Energy and Energy
Conservation, Data and Information Center MEMR and PT PLN (Persero);
- Danish Energy Agency;
- Energy experts for their contribution in formulating Indonesia Energy Outlook 2022.
The energy demand and supply analysis are conducted based on LEAP (Low Emissions
Analysis Platform) calculation model. LEAP is an energy planning modelling application to
take an integrated energy demand and supply analysis.
Population growth and economic growth are the basic assumptions which are developed
to obtain an illustration on energy demand up to the year 2032, biofuel mandatory, electric
vehicle (EV) development, and power capacity.
In 2032, final energy consumption in BaU scenario will increase with the average growth of
4.8% per year into 207 million TOE. The biggest final energy consumption shares in 2032
come from transportation and industry with 42.6% and 37.9% respectively. The final energy
consumption in OPT scenario will increase 6.6% per year into 248 million TOE. Unlike BaU
scenario, the biggest final energy consumption in OPT scenario comes from industry with
49.2%, followed by transportation with 36.4%.
Based on region, the biggest final energy consumption in 2032 occurs in Java-Bali (45.7%)
in BaU scenario, while the smallest final energy consumption occurs in Nusmapa (10.4%).
Electricity demand in 2032 in OPT scenario is projected to reach 60 million TOE (702 TWh)
or almost twice of BaU scenario that is influenced by fuel to electric vehicle substitution
program.
Meanwhile, electricity production in 2032 is projected to reach 791 TWh in OPT scenario and
489 TWh in BaU scenario. Power production in both scenarios in 2032 is still dominated by
coal of 75.1% in BaU and 48.9% in OPT.
TABLE OF CONTENT
REMARK BY CHAIRMAN OF NATIONAL ENERGY COUNCIL........................................... ii
FOREWORD BY MEMBER OF NATIONAL ENERGY COUNCIL.......................................... iii
FOREWORD BY SECRETARY GENERAL OF THE NATIONAL ENERGY COUNCIL............. iv
EDITORIAL BOARD .......................................................................................................... v
DISCLOSURE................................................................................................................... vi
EXECUTIVE SUMMARY ................................................................................................... vii
TABLE OF CONTENT........................................................................................................ viii
LIST OF PICTURES.......................................................................................................... xi
LIST OF TABLES............................................................................................................... xiv
CHAPTER I INTRODUCTION......................................................................................... 1
1.1 Background............................................................................................................. 1
1.2 Methodology........................................................................................................... 1
1.2.1 Modeling Analysis Framework..................................................................... 1
1.2.2 Energy Projection Scenario.......................................................................... 3
1.2.3 Energy-related Policy Assumption.............................................................. 4
1.3 Current Energy Condition....................................................................................... 5
1.3.1 Oil................................................................................................................. 5
1.3.2 Gas............................................................................................................... 8
1.3.3 Coal.............................................................................................................. 9
1.3.4 Renewable Energy....................................................................................... 11
1.3.5 New Energy.................................................................................................. 12
1.1 BACKGROUND
The main data source in IEO 2022 is Handbook of Energy and Economic Statistics of
Indonesia (HEESI) 2021 publication by Data and Information Center MEMR, RUPTL PLN
2021-2030, Statistics Indonesia 2022 – BPS , and Industrial Statistics of BPS 2019.
1.2 METHODOLOGY
The energy supply and demand analysis are conducted based on calculation of LEAP model
as a simulation model in energy planning which can conduct an integrated energy supply
and demand analysis. In LEAP model, energy demand projection is calculated based on the
multiplication of energy consumption activity and energy consumption intensity. Energy
activity is described by economic growth, population and production. Meanwhile, energy
intensity is the level of energy consumption per GDP or per population or per production in
particular period. Energy intensity can be considered as fixed during simulation period or
declining to show energy efficiency increase.
Gas Refinery
Power Plant Power Plant
(LPG & LNG)
In the modelling, energy consumption uses the data on each province. It is then calculated
based on per region. The data of energy consumption per province is obtained from units in
MEMR and energy Business Entities. Data on fuel and LPG consumption/sales per province
is specifically derived from Directorate General of Oil and Gas. Meanwhile, the main data
of electricity sales is derived from PLN sales data with additional identification of non-
PLN consumption data and electricity from smelter industry. Data on coal consumption
per province is obtained from Directorate General of Mineral and Coal. However, the
sales of electricity per sub sector refers to data from Industrial Statistics BPS. Data on gas
consumption is based on data on sales at HEESI, while consumption per industrial sub sector
uses Industrial Statistics BPS data. The data on household consumption per province uses
data from Indonesia Residential End Use Survey that is the result of a CLASP study with the
Directorate General of EBTKE.
BAU scenario refers to current condition and the future projection which is assumed
based on historical data in the last several years such as additional city gas, electric stove,
electric vehicle, and others. The power plant development refers to RUPTL 2021-2030 with
assumption that the project completion is delayed for two years.
DEMAND
Electric Car 2032
- Java % 10 20
- Outside Java % 7 20
Electric Motorcycle 2032
- Java % 5 25
- Outside Java % 3 25
Electric Bus 2032
- Java % 5 10
- Outside Java % 3 10
Biofuel Mandatory 2032
- Bioethanol % 1 5
- Biodiesel % 30 40
ELECTRICITY
RUPTL 2021-2030
RUPTL 2021-2030 with Optimization of Solar
Power Plant Capacity
COD delayed 2 years PP and Co-firing Coal
Fired PP
In order to support energy demand projection, several energy-related policies are being
considered, including:
1. National Energy Policy
National Energy Policy (KEN) mandates renewable energy mix target in primary energy
mix of at least 23% in 2025 and minimize the use of oil to be less than 25% in 2025.
Furthermore, energy efficiency is also targeted to decline 1% per year to promote energy
saving in all sectors. Several targets in KEN also becomes the consideration in energy
demand projection such as optimization of gas for domestic and coal downstreaming.
4. RUPTL 2021-2030
The data on capacity of planned power plant refers to RUPTL 2021-2030. In BaU
scenario, the power plant development refers to RUPTL with the project completion is
delayed for two years and the OPT scenario follows RUPTL with additional optimization
of Solar PP and co-firing Coal Fired Power Plant.
5. Biofuel Roadmap
Biofuel mandatory is taken into consideration as one of the assumptions in final energy
demand projection in transportation, industry, commercial and power plant sector.
In 2021, total primary energy production consisting of oil, gas, coal and renewable energy
reaches 481 million TOE. Around 58.2% or 280 million TOE from the total production is
exported, especially coal and LNG. However, Indonesia is also importing energy especially
crude oil and fuel products amounting to 49 million TOE and small amount of high rank coal
to meet the demand of steel industry.
1.3.1 Oil
Based on BP Statistic Review 2021 data, the number of Indonesia oil reserves is only 0.1%
from the world reserves. Indonesia oil reserves experience a decline from 7.4 billion barrels
(3.7 billion barrels for potential reserves and 3.7 billion barrels for proven reserves) in 2012
to 3.9 billion barrels (1.7 billion barrels for potential reserves and 2.2 billion barrels for
proven reserves) in 2021 (Picture 1.2).
3.5
3.0
Billlion Barrel
2.5
2.0
1.5
1.0
0.5
0.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Proven 3.7 3.7 3.6 3.6 3.3 3.2 3.2 2.5 2.4 2.2
Oil production in the last 10 years shows the declining trend, from 315 million barrel (862
thousand bph) in 2012 into 240 million barrel (659 thousand bph) in 2021. The declining
production occurs since oil producing wells are mainly mature wells, while new producing
wells are relatively limited.
The declining production and the increasing refinery input demand cause Indonesia to
import oil especially from Middle East. The import tends to increase from 96 million barrels
in 2012 into 104 million barrels in 2021 that is influenced by the fluctuating crude oil demand
for refinery input. The crude oil import for refinery input in 2012-2018 is around 30-50%, but
it declines into 26-35% in 2019-2021.
On the other hand, Indonesia oil export continues to decline from 106 million barrel in 2012
into 44 million barrels in 2021. This is based on the Minister of Energy and Mineral Resources
Regulation No. 42 of 2018 on the Priority of Crude Oil Utilization for Domestic Need. It
means that domestic oil production is used maximally for the domestic need. The trend of oil
production, export and import since 2012 to 2021 can be seen in Picture 1.3.
400
Million Barrel
300
200
100
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Import 96 118 122 137 148 142 126 89 80 104
Production 315 301 288 287 303 292 282 272 259 240
Export 106 105 93 115 126 103 74 26 31 44
Within 10 years, the average fuel production from domestic is 297 million barrels per year
and the average fuel import is around 164 million barrels. The trend of fuel production,
export and import in the last 10 years can be seen in Picture 1.4.
500
450
400
350
Million Barrel
300
250
200
150
100
50
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
120
100
80
TSCF
60
40
20
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Proven 103 102 100 98 101 100 96 50 44 42
In 2021 Indonesia’s total natural gas production is around 6,668 MMSCFD that is used
mainly to meet domestic consumption in the industrial sector either as energy or feed stock
(fertilizer industry), power plants and city gas (household and commercial) as well as gas
for transportation sector. Gas production is declining from around 8,698 MMSCFD in 2012.
One of them is influenced by the limited reserves in Arun. Furthermore, the activity of gas
production in Tangguh field (Train 3) is not yet started. In addition, gas has become the
export commodity in the form of LNG and piped gas of around 2,390 MMSCFD in 2021 but
the gas export is declining due to the program in prioritizing gas for domestic need that
shows an increase from 57.8% in 2012 into 64.2%. The export percentage through pipeline
and LNG toward the total gas production is declining from 42.2% in 2012 into 35.5% in 2021
(Picture 1.6).
9,000
8,000
7,000
6,000
MMSCFD
5,000
4,000
3,000
2,000
1,000
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Export 3,673 3,449 3,199 3,069 2,862 2,650 2,965 2,470 2,366 2,390
Production 8,698 8,550 8,701 8,537 8,412 8,118 8,210 7,698 6,693 6,668
Gas primary energy including LPG is derived from LPG refinery production and LPG import.
LPG production from 2012 to 2021 is around 2 million tons and LPG imports continue to
increase. The trend of LPG production and import is shown in Picture 1.7.
6
Million Ton
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Production Import
1.3.3 Coal
Indonesia’s total coal reserves in 2021 are 36 billion tons and it continues to increase since
2012 despite of the increasing production (Picture 1.8). It is due to the increasing exploration
in the last 10 years.
35
30
25
Billion Ton
20
15
10
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Reserve 29 31 32 32 28 24 40 38 39 36
Coal production in 2012-2021 increased significantly from 386 million tons in 2012 into 614
million tons in 2021. Coal export is around 70.9% (435 million tons) from the total production.
It is mostly exported to China and India. The high percentage of Indonesia coal export has
made Indonesia one of the biggest coal exporters in the world besides Australia. The coal
production, export and import in the last 10 years is shown in Picture 1.9.
700
600
500
Million Ton
400
300
200
100
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Import 0 1 2 3 4 5 5 7 9 14
Export 304 356 382 366 331 287 356 455 405 435
Production 386 474 458 462 456 461 558 616 564 614
Tidal 17.9 - -
The total renewable energy potential for power plant is 3,643 GW, but only 0.3% or 11.6 GW
is utilized.
The low NRE utilization for electricity generation is due to the relatively high cost of NRE-
based power plant. Thus, it is difficult to compete with fossil power plant especially coal. In
addition, the lack of support from domestic industry in NRE component and the issue in low
interest funding have contributed to the slow development of renewable energy.
8,000
7,000
Thousand KL
6,000
5,000
4,000
3,000
2,000
1,000
-
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Production Export
a. Nuclear
Based on data published by BRIN, Indonesia has the potential of 89,498 ton of uranium
and 143,234 ton of thorium. The heat of 1 gram fission of U235 is equivalent to the heat of
2-3 tons of coal. The average abundance of U235 is 0.7% as long as no new nuclear raw
material reserves are found. Therefore, according to the uranium potential data, the total
potential only from Indonesian uranium is equivalent to 1.88 billion tons of coal.
In addition, three coal business entities located in East Kalimantan and North Kalimantan
plan to develop underground coal gasification but it is still in pilot project stage. These
business entities are PT Kideco Jaya Agung in East Kalimantan, PT Indominco in East
Kalimantan, and PT Medco Energi Mining International (MEMI) and Phoenix Energi Ltd in
North Kalimantan.
Based on the consuming sector, transportation still dominates the biggest portion of 44.2%
from the total final energy consumption as shown in Picture 2.1. Compared to the previous
year, energy consumption in transportation increased 6.7%. The increase occurred along
with the increasing public mobility as the social restriction and the number of Covid-19
pandemic cases are declining.
140
120
100
Million TOE
80
60
40
20
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
140
120
100
Mi8llion TOE
80
60
40
20
-
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Coal Gas Fuel Bio Gasoil Biogas Briquette LPG Electricity Total
Picture 2.2 Final Energy Consumption per Energy Type 2012 – 2021
Biofuel (biogasoil and biogas) is in the second place with the consumption of around 27
million TOE (22.1%). The achievement is part of the government’s effort to promote the
utilization of biofuel through B30 mandatory. Meanwhile, electricity and LPG consumption
by the public in 2021 reached 23.6% million TOE and 10.2 million TOE respectively. The
consumption of these two energy products increased from the previous year.
70
60
50
Miliion TOE
40
30
20
10
-
Java-Bali Sumatra Kalimantan Sulawesi Nusmapa
Picture 2.3 Final Energy Consumption per Region in 2021 based on Consuming Sector
From the type of energy, all regions still depend on oil, especially in the form of fuel to meet
the demand from transportation. Specifically for Sulawesi, coal consumption (5 million TOE)
is not far different from oil consumption (4.9 million TOE). It is supported by the growing
smelter industry since 2018 along with the issuance of policy on mineral export restriction
for company which has not established domestic processing facility (Mining Law Article 102
and 103). The imbalance occurs in electricity commodity which is mostly used in Java-Bali
reaching 69.9% from total national. It shows that electricity network infrastructure outside
Java-Bali is still far below in Java-Bali. Meanwhile, for NRE, in total, utilization is mostly
found in Java-Bali of about 4 million TOE. However, the highest percentage in the mix is
in Kalimantan region reaching 14.6% (or equivalent to 3 million TOE). Complete picture in
Figure 2.4.
60
50
Million TOE
40
30
20
10
-
Java-Bali Sumatra Kalimantan Sulawesi Nusmapa
Picture 2.4 Final Energy Consumption per Region 2021 based on Energy Type
240
210
180
Million TOE
150
120
90
60
30
-
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
12.2%
14.5%
NRE 37.6%
35.5%
Oil
2021 2021
RUEN TARGETS 28.1% Gas REALIZATION
33.4%
Coal
21.9% 16.8%
In Sumatra region, primary energy supply reached 17.5% of the total national. Energy
utilization in Sumatra region is dominated by oil with the share of 39.1%. However, the
utilization of NRE in Sumatra region is the largest compared to other regions, which is 22.7%.
Meanwhile, the utilization of NRE reached only 16.5% in Kalimantan, 12.6% in Sulawesi and
7.6% in Nusmapa. The details of primary energy consumption in 2021 in each region can be
seen in Picture 2.7.
100
80
Million TOE
60
40
20
0
Java-Bali Sumatra Kalimantan Sulawesi Nusmapa
Coal Gas Oil NRE
Households are the largest sector that consumes electricity in 2021, followed by the
industrial sector, commercial sector and transportation sector. The demand for electricity
in the household sector is 114 TWh or 44.9% of the total national electricity demand. This is
influenced by the number of households reaching around 69 million in 2021. The demand for
electricity in the industrial sector is 80 TWh (31.4%) and the commercial sector is 60 TWh
(23.6%). The rest of the demand is from the transportation sector of 0.3 TWh (0.1%). Currently,
the transportation sector’s electricity consumption is only used for the Jabodetabek and
Java electric trains with a consumption of 317 GWh. The demand for electricity by sector is
shown in Picture 2.8.
255
246 243
250 235
223
216
199 203
200 188
174
TWh
150
100
50
-
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Household Commercial Industry Transportation Total
The condition of electricity consumption per region shows that the progress of infrastructure
development outside Java-Bali is still very far from the conditions in Java-Bali region. The
conditions in eastern Indonesia especially Papua and Maluku, contribute no more than 3%. In
addition, the level of population density is also one of the main factors causing disparity. Total
electricity customers in 2021 reached 79 million, around 61% are Java household. This fact
further strengthens the need for accelerated development and equity outside Java, as shown
in Picture 2.9
200
180
160
140
120
TWh
100
80
60
40
20
-
Java-Bali Sumatra Kalimantan Sulawesi Nusmapa
Household Commercial Industry Transportation Others
1,150
1,123
1,000
956
950
900
850
2016 2017 2018 2019 2020 2021
70
60
50
Million KL
40
30
20
10
-
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
The largest use of fuel, when viewed by consuming sector, is dominated by the transportation
sector followed by the industrial sector and other sectors as shown in Picture 2.12 below.
500
450
400
350
Million BOE
300
250
200
150
100
50
-
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
35
30
25
Million KL
20
15
10
0
Java-Bali Sumatra Kalimantan Sulawesi Nusmapa
280
270
Litre/Capita
260
250
240
230
220
2016 2017 2018 2019 2020 2021
The increase in LPG consumption, especially 3 kg LPG that is still subsidized, needs to be
anticipated by the Government, given the large number of uses of 3 kg LPG which are not on
target. The development of LPG consumption is shown in Picture 2.15.
9,000 6.7%
2.7% 3.3%
8,000 5.2%
8.3%
7,000 4.7% 4.2%
8.7%
6,000 11.5%
15.7%
Thousand Ton
5,000
4,000
3,000
2,000
1,000
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
4
Million Ton
-
Java-Bali Sumatra Kalimantan Sulawesi Nusmapa
35
31
29 30
30 29
28
26
25
Kg/Capita
20
15
10
-
2016 2017 2018 2019 2020 2021
In 2021, coal consumption in industrial sector was dominated by the use of the iron, steel
and metallurgical sectors of 11.4 million tons or around 54.5% of the total industrial sector
consumption. It is then followed by the cement, textile and fertilizer industries of 4.7 million
tons , other industries of 3.7 million tons, and the pulp and paper industry of 1.1 million tons.
Data on coal consumption in industrial sector can be seen in Picture 2.18.
45
40 Others
35
30 Briquette
Million Ton
25
15
10 Cement, Textile
& Fertilizer
5
Iron, Steel &
0 Metallurgy
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
10
9
8
7
Million Ton
6
5
4
3
2
1
-
Java-Bali Sumatra Kalimantan Sulawesi Nusmapa
Energy elasticity is the ratio of final energy consumption growth to GDP growth in the same
time period. The low or below one energy elasticity value indicates efficient use of energy
because to increase 1% GDP growth needs energy demand growth below 1%.
In accordance with the target of KEN, energy elasticity must be below one starting in 2025.
The energy elasticity will gradually decrease from year to year, and by 2050 the energy
elasticity is targeted to reach 0.46 which indicates that national energy use will be more
efficient. Indonesia’s energy elasticity from 2012-2021 fluctuated (Picture 2.20).
7
5.8
6
3
2.1
2 1.6
1.3
0.3 0.8
1 0.4
0
-0.0
-1
-2 -1.6 -0.7
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Meanwhile, primary energy intensity is the ratio of the amount of primary energy supply to
the total gross domestic product (TOE/Billion Rupiah). Based on RUEN, the projection of
primary energy intensity should decrease by 1% every year, but the realization of Indonesia’s
primary energy intensity from 2012-2021 fluctuated and tends to decline from 22.5 TOE/
Billion Rupiah in 2012 to 18.7 TOE/Billion Rupiah in 2021 as shown in Picture 2.21.
15.0
10.0
5.0
-
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Indonesia needs energy with good quality at affordable energy prices to support the vision
of becoming a developed country through the development of industry and other energy
consuming sectors. If energy prices are compared in the same unit (thousand rupiah/BOE),
then coal will be the cheapest energy source as shown in Picture 2.22 below.
1,800
1,600
1,400
Thousand Rupiah/BOE
1,200
1,000
800
600
400
200
-
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Public
Government
Year Household Industry Business Social Street Average
Office
Lighting
2012 631.7 709.9 965.2 677.5 968.6 802.8 728.3
12,000
10,000
RUPIAH/LITRE
8,000
6,000
4,000
2,000
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
140,000
120,000
100,000
Rupiah/MMSCF
80,000
60,000
40,000
20,000
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
16,000
14,000
12,000
Rupiah/Kg
10,000
8,000
6,000
4,000
2,000
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
251.1
250
200
USD/Ton
150
121.5
95.5 99.0
100 82.9 85.9
72.6 77.9
60.1 61.8 58.2
50
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
2.9 EMISSION
Emission is the result of fuel combustion from energy consuming sectors and power plan
activity. Total emission in 2021 is 607 million ton CO2eq. The biggest contributor is power
plant sector with 49.8%, followed by transportation and industry with 23.7% and 16.1%
respectively. The development of CO2 emission in 2012-2021 is shown in Picture 2.27.
700
639
596 607
587
600
551
532 519 530
510 518
500
Million Ton CO2eq
400
300
200
100
-
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Power Plant Transportation Commercial Household Industry Fugitive Emission Others Total
In the last 10 years, oil refinery capacity in Indonesia does not change a lot. The latest
additional capacity occurred in 2015 with the additional 12 million BPH to Tri Wahana
Universal (TWU) refinery Unit II. TWU refinery is the oil refinery located in Bojonegoro,
East Java which produces main products such as straight run gasoline, marine diesel oil,
and diesel. TWU refinery uses crude oil from Banyu Urip Field and Cepu Block. However,
this refinery only operated for 2 years and it stopped operating in early 2018 due to lack of
refinery raw material supply.
Crude oil for refinery input in 2021 is 300 million barrels from domestic production and
import. Besides crude oil, oil refinery input also needs gas and intermedia. After being
processed, oil refinery will produce gasoline, diesel oil, fuel oil, kerosene, avtur, avgas and
other refinery products (non fuel) such as LPG, lubricant, naptha, and others. Oil refinery
production in 2021 reached 255 million barrels and non fuel refinery production reached 41
million barrels.
Capacity
LPG Refinery (Million Ton per Annum)
PT Badak 21.6
PT BP 7.6
In October 2014, PT Arun’s LNG refinery stopped operating due to the unavailable gas
supply from Arun gas field. This refinery, located in Lhokseumawe, Aceh is then transformed
into regasification terminal by Pertamina through PT Perta Arun Gas to meet the gas supply
for industry and electricity. Total LNG production in 2021 from these three fields is 14,712.2
thousand metric ton. Most LNG is exported especially to China, Korea, Japan and Taiwan
based on long-term contract reaching 416,691 thousand MMBTU in 2021 or only 23% of LNG
is used for domestic need, especially to meet the demand from power sector.
East Java
South Sumatra
West Java
East Kalimantan
North Kalimantan
Aceh
Jambi
Riau
North Sumatra
Lampung
Banten
Central Java
South Sulawesi
DKI Jakarta
Central Sulawesi
Riau Islands
West Papua
Source: Oil and Gas Statistics Semester I 2021 and presentation by Directorate General of Oil and Gas
40
GW
30
20
10
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Picture 2.29 Power Plant Installed Capacity per Energy Type 2012-2021
14
12 12
10 10
10
10 9
9
9
8
GW
7 7
6 6
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Power plant infrastructure is spread in all areas in Indonesia, but only 63% of power plant
capacity is built in Java-Bali region (Picture 2.31). Meanwhile, power plant capacity is only
20.2% in Sumatra, 7.1% in Kalimantan, 8.5% in Sulawesi, and 3.9% in Nusmapa region from
the total national installed capacity. This statistic shows that power plant infrastructure has
not been developed evenly.
25
20
15
15
10
5 6
5 3
-
Sumatra Java-Bali Kalimantan Sulawesi Nusmapa
Currently, the Oil and Gas Law is being discussed by the House of Representatives for
revision through the formation of the Oil and Gas Law Draft. The drafting of this Law is
intended to amend Law No. 22 of 2001 which was annulled by the Constitutional Court 10
years ago. One of the main issues in the Oil and Gas Law is the establishment of a definitive
institution to replace the Special Task Force for Upstream Oil and Gas Business Activities
(SKK Migas).
Another issue is the amendment in the 10% participating interest for Regional Owned
Enterprises (ROE). The amendment is the obligation of ROE to seek financing capital or
find partners to establish companies in the management of the oil and gas business. In
addition, the issue to include the cost recovery system in the Oil and Gas Law Draft was also
discussed. It is an effort not to regulate cost recovery in derivative regulations so that the
change of government and ministers will not change policies.
Based on Presidential Regulation No.112 of 2022, the construction of power plants will be
carried out selectively and the construction of NRE-based power plants is targeted to be
carried out hand in hand. The development of new Coal Fired PP is prohibited except for
Coal Fired PP which has been stipulated in the Electricity Supply Business Plan (RUPTL)
prior to the enactment of this Presidential Regulation or for Coal Fired PP that meets the
following requirements:
1. Integrated with industries built to increase natural resources value added or industries
included in National Strategic Projects that have major contributions to job creation and/
or national economic growth.
2. Committed to reduce greenhouse gas emissions at least 35% (thirty five percent) within a
period of 10 (ten) years since the operation of the Coal Fired PP compared to the average
Coal Fired PP emissions in Indonesia in 2021 through technology development, carbon
offsets, and/or Renewable Energy mix.
3. Operating no later than 2050.
Meanwhile, the Presidential Regulation No.112 of 2022 regulates several things regarding
the mechanism for the use of renewable energy in the electricity sector, such as: the purchase
price of electricity, the implementation of the purchase of electricity, the Electricity Sales and
Purchase Agreement, and the role of the government related to new and renewable energy
such as support, fostering, and supervision. In addition to the electricity purchase tariff, the
implementation of the purchase of electricity is also regulated, which can be done in two
ways, namely through direct appointment or direct election. This Presidential Regulation also
stipulates provisions related to incentives, both fiscal and non-fiscal. The fiscal incentives
can be in the form of income tax facilities, import facilities, land tax facilities, geothermal
development facilities, and/or support for financing and/or guarantee facilities. Then, non-
fiscal incentives can be in the form of incentives provided by both the central government
and/or regional governments.
In addition to the Presidential Regulation, the Government is currently finalizing the draft
of the New Energy and Renewable Energy Law, or often abbreviated as the EBET Law. In
Meanwhile, technical rules regarding its utilization are still regulated in separate legal
products according to each type of energy. Some of these regulations include:
1. Law No. 21 of 2014 on Geothermal;
2. Minister of Energy and Mineral Resources Regulation No. 32 of 2008 on Provision,
Utilization and Trading of Biofuel as Other Fuels;
3. Minister of Energy and Mineral Resources Regulation No. 44 of 2015 on the Electricity
Purchase from Municipal Waste PP by PLN;
4. Presidential Regulation No. 47 of 2017 on the Provision of Energy-Saving Solar Lamps
(LTSHE) for Unelectrified Community;
5. Minister of Energy and Mineral Resources Regulation No. 50 of 2017 on the Utilization of
NRE Sources for Power Supply;
6. Minister of Energy and Mineral Resources Regulation No. 41 of 2018 on the Provision and
Utilization of Biofuel (Biodiesel Type);
7. Minister of Energy and Mineral Resources Regulation No. 4 of 2020 on Utilization of
Renewable Energy Sources for Power Supply;
8. Minister of Energy and Mineral Resources Regulation No. 26 of 2021 on Rooftop Solar
Power Plants Connected to the Power Network of Power Supply for Public Interest
License Holder.
Energy demand in each scenario is influenced by economic growth, population growth and
policies taken during the projection period. In the next ten years, final energy demand in the
BaU scenario is projected to grow by an average of 4.8%, while the final energy demand in
the OPT scenario grows at a higher average of 6.6% per year. The difference between the
two scenarios is influenced by the program of electric vehicles and the use of biofuels in the
transportation sector which is higher in the OPT scenario. Meanwhile, in the household sector,
the assumption of LPG stoves to city gas and electricity substitution in the OPT scenario is
greater. Energy demand in each scenario in 2032 is described in Picture 3.1.
300
248
250
207 22
3
MILLION TOE
200 22
3 91
150 123
88
21
100 2
49 122
50 79
44
- 8 22 22 15 10
BaU OPT BaU OPT BaU OPT
2021 2023 2025 2032
In 2021 the largest share of final energy consumption was from the transportation sector,
but in 2032 in the OPT scenario, the largest share will shift to the industrial sector (49.2%).
This is influenced by higher growth in the industrial sector in the OPT scenario, to pursue the
vision of Indonesia Onward in 2045.
10%
18%
12%
8% 123
Million TOE
52%
There is no significant change in energy use substitution in BaU scenario. Thus, in 2032 the
biggest energy demand is still from fuel (50.1%). In OPT scenario, the role of fuel declines
into 35.6% due to substitution policy from fuel to gas, electricity and biofuel. Meanwhile,
NRE share increases into 10.2% due to the use of biogasoline and the increasing use of
biodiesel. The complete overview of final energy demand share per type of energy in 2032
is presented in Picture 3.3
300
248
250
207
MILLION TOE
60
200
37
25
19
150 123
22 88
100 10 104
50 64 43
21
15 26 31
- 12
Picture 3.3 Final Energy Demand per Energy Type until 2032
Industrial sector has not developed innovation plan on energy substitution, except biodiesel
program that has been implemented in all sectors and biomass to coal substitution in several
pulp & paper industry. Energy demand projection in industry based on two scenarios is seen
in Picture 3.4.
140
122
120
28
100
MILLION TOE
79 7
80 14
12
5
60
44 14 41
40 7
3 21
8
20 14
26 31
12
-
BaU OPT BaU OPT BaU OPT
2021 2023 2025 2032
In 2032 the largest energy consumption in the industrial sector will be gas and coal. Gas is
mainly used in the petrochemical industry including fertilizers (as feedstock), ceramics and
metal industries. While coal is mainly used in the cement industry, pulp and paper industry
as well as food industry. Based on the type of industry, there are 6 categories of industries
that consume the most energy can be found in Picture 3.5.
34.3%
7.7%
20.5%
Picture 3.5 Energy Demand Share of the Six Biggest Industries in BaU Scenario 2032
100 88 91
90
11 16
80
2
MILLION TOE
70 12
60 49
50
5
40 75
30 63
20 44
10
0
BaU OPT BaU OPT BaU OPT
2021 2023 2025 2032
In 2032, the use of biofuels in transportation, especially in OPT scenario, will reach 17.3%
with the increase in the use of biodiesel to B40 and biogasoline to E5. Meanwhile, electricity
25 22 22
21
0.9 0.9
20
0.8
7.6
9.9
MILLION TOE
15 9.7
0.1
0.1 1
0.4 0.1
10 0.1
11 12
5 10
-
BaU OPT BaU OPT BaU OPT
2021 2023 2025 2032
The largest energy consumption growth in household sector in the OPT scenario is natural
gas at 27.3% per year along with the increase in the city gas program and followed by
electricity at 2.3% per year due to the electric stove substitution program. On the other hand,
LPG growth experiences a decrease with the growth of -2.3% per year.
16.0 15
14.0 0.02
12.0
10
10.0
MILLION TOE
11 0.02
8
8.0
0.01
7
6.0
6
4.0 1
0.8
2.0 0.6 3
1
1
- 0.3 0.6 0.7
BaU OPT BaU OPT BaU OPT
2021 2023 2025 2032
3.5
3.1
3.0
3.0
0.6 0.9
2.5
2.0
MILLION TOE
2.0
0.4
1.5 1.8 1.7
1.0 1.2
0.5
0.5 0.5
0.3
-
BaU OPT BaU OPT BaU OPT
2021 2023 2025 2032
3.1.2.1 Fuel
Total fuel consumption in BaU scenario grows by an average of 5.1% per year, so that fuel
consumption in 2032 will reach 93 million TOE. Meanwhile in OPT scenario, fuel demand
grows slower by 3% so that it will increase to 80 million TOE in 2032, in line with the more
optimistic substitution of fuel vehicles to electricity and biofuels. The demand for all types
of fuel increases except for the use of kerosene in the household sector that is projected
to decrease to 0.015 million TOE at the end of the projection year as shown in Picture 3.10.
100 93
90 80
14
80 2
14
70
2
54
MILLION TOE
60
50 7
1
40 75
63
30
44
20
10 0.1
0.4 0.1
- 1 3 1
BaU OPT BaU OPT BaU OPT
2021 2023 2025 2032
Picture 3.10 Fuel Consumption per Sector in BaU and OPT Scenario
3.1.2.2 LPG
LPG demand in 2032 will grow by 0.6% per year (BaU) but decreased by 1.41% per year in
OPT scenario. At the end of the projection, LPG demand will reach 11 million TOE (BaU) and
9 million TOE (OPT) as shown in Picture 3.11.
12.0
11
10
10.0
9
8.0
MILLION TOE
6.0 10
10
8
4.0
2.0
0.2 0.4
0.1
0.3 0.6 0.7
-
BaU OPT BaU OPT BaU OPT
2021 2023 2025 2032
3.1.2.3 Gas
The industrial sector is the biggest natural gas user, while only 1% of natural gas is used in
the household, transportation and commercial sectors.
In OPT scenario, natural gas demand is projected to increase by an average of 10.3% per
year to reach 43 million TOE, while in BaU scenario it will grow even lower at 3.4% and reach
21 million TOE in 2032 as shown in Picture 3.12.
BaU OPT
45 43
40
35
MILLION TOE
30
25
21
20
15 15
15
10
-
2021 2023 2025 2032
3.1.2.4 Coal
Coal demand in industrial sector grows by an average 7.0% per year in BaU scenario, reaching
26 million TOE in 2032. Meanwhile, in OPT scenario which is assumed to have high growth
in industrial sector, coal demand will increase to 31 million TOE or growing at an average of
8.8% per year as shown in Picture 3.13.
35
31
30
26
25
MILLION TOE
20
15 12
10
-
BaU OPT BaU OPT BaU OPT
2021 2023 2025 2032
In 2032, the largest share of bioenergy demand will come from the transportation sector,
namely 59.3% (11 million TOE) in BaU scenario and 61.6% (16 million TOE) in OPT scenario.
The overview of fuel consumption by sector can be seen in Picture 3.14.
30
25
25
0.9
19
20
MILLION TOE
0.6
16
15
11
10
10
0.4 0.9
5 0.9
5
7
0.8 5
3
0.6 1.1 0.8
-
BaU OPT BaU OPT BaU OPT
2021 2023 2025 2032
300
248
250
207 47
200
42 28
MILLION TOE
22 33
150
123
27
22
100
12
17 120
95
50
65
21 21
- 7
BaU OPT BaU OPT BaU OPT
2021 2023 2025 2032
The largest share of electricity demand in 2021 comes from household sector around 43.6%,
followed by industry 29.3%, commercial, 25.4%, other sectors 1.5%, and transportation
around 0.2%. The share of electricity consumption in 2032 specifically in the OPT scenario
will change, so the largest share will shift to the industrial sector around 46.6%, followed
by transportation 19.7%, household 20.7%, commercial 12.1%, and others sector 0.9%.
There is an increase in the share of electricity consumption in industrial and transportation
sectors along with the planned new industrial areas, especially outside Java as well as the
use of electric vehicles which has been echoed since 2022 through an appeal to the use
of electric vehicles as official vehicles for the central and regional governments as well as
the increasing use of electric vehicles in public transportation such as online transportation,
buses, and taxis. The projection of electricity demand by sector for each scenario is shown
in Picture 3.16.
800
702
700
600
327
500
433
TWH
400
143
- 4 6 6
BaU OPT BaU OPT BaU OPT
2021 2023 2025 2032
800
702
700
137
600
39
500 433 45
TWH
400 74
19
261
300 19
42 452
200 12
12 305
100 182
- 12 16 29
200 182
180
160
56
140 125
0
120
28
GW
100 52
77 4
80 27
60 23
5
40 12
66 74
20 37
-
BaU OPT BaU OPT BaU OPT
2021 2023 2025 2032
NRE power plant capacity in BaU scenario in 2032 will increase with an average annual
growth of 7.9% into 27 GW, while in OPT scenario it will increase with an average annual
growth of 14.7% into 52 GW. In OPT scenario, Solar PP capacity will experience the highest
growth compared to other power plants. The capacity of Solar PP in OPT scenario in 2032
will reach 25 GW or 48.3% of the total NRE power plant capacity. Meanwhile, the share of
Hydro PP (including Micro PP and MHP) will be around 21.8% (11 GW), Bioenergy PP will be
around 18.7% (10 GW), and Geothermal PP will be around 10.8% (6 GW). The development
of power plant capacity in BaU and OPT scenarios can be seen in Picture 3.19.
60
52
50
11
40 0.2
10
GW
30 27
6
20 11
12 0.2
3 25
10
7 6
0.2
2 6
2
-
0 BaU OPT BaU OPT BaU OPT
2021 2023 2025 2032
31,657
160,000
7,842
125,143 10,072
30,149
120,000
22,603
MW
7,178
76,611 9,572
80,000 7,959
15,051
3,645
7,560 102,201
40,000 5,431 77,831
44,924
-
BaU OPT BaU OPT BaU OPT
2021 2023 2025 2032
50,000
13,044
40,000
4,322
7,921
20,000
4,326
11,531
2,451 23,678
10,000 4,615
9,707
1,683
719
4,373
141 2,153 1,661
-
BaU OPT BaU OPT BaU OPT
2021 2023 2025 2032
Based on the type of power plant, the share of coal-fired power plant production in 2021
is around 65.5%, and it will increase to around 75.1% in 2032 for BaU scenario. However, in
OPT scenario, the share of electricity production from coal will drop quite significantly to
around 48.9% in 2032.
In OPT scenario, the development of power plants is directed at optimizing NRE power
plants, especially increasing Solar PP and optimizing coal cofiring by around 10% starting
in 2030. In addition, future power plant development is also directed at substituting fuel to
NRE or gas, so that the share of fuel in 2032 will be only about 1%. The diesel PP still exists,
but it is prioritized for 3T area (Outermost, Remote and Disadvantaged Areas) that are not
reached by other energy. The electricity production per type of energy for both scenarios can
be seen in Picture 3.22.
900
791
800
700
264
600
489
7
500
TWH
134
115
400 0.38
301 7
300
46
6
52
200 367 386
100 197
-
BaU OPT BaU OPT BaU OPT
2021 2023 2025 2032
Electricity production from NRE plants in 2032 will be 115 TWh (BaU) with the largest share
coming from Hydro PP, Geothermal PP, Bioenergy PP, and Solar PP. Meanwhile, in the
same year, electricity production in OPT scenario will be around 264 TWh with the largest
production share from Bioenergy PP at around 114 TWh (43.1%), and Solar PP production
will be around 66 TWh (25%). The cheaper price of electrical components from Solar PP
and the solar-rooftop program in commercial buildings and luxury homes as well as Energy
Saving Solar Lamps (LTSHE) allow for faster Solar PP penetration. The projected electricity
production from NRE power plants can be seen in Picture 3.23.
300
264
250
114
200
TWH
150 0.5
115
66
100 26
0.5
11
46 39 39
50
11
0.2 0.1 44
16 39
- 19
BaU OPT BaU OPT BaU OPT
2021 2023 2025 2032
17.1%
28.4%
Coal 35.7%
BaU 44.4% OPT
Gas
332 Oil
446
Million TOE Million TOE
30.1% NRE
19.2%
8.3% 16.7%
In OPT scenario, the largest share of NRE primary energy is in Kalimantan region at 43.3%,
followed by Sumatra region at around 38.3%. The potential for NRE power plants, especially
hydro PP, which are quite large in both regions also have an effect on increasing the NRE
mix. A complete overview of the share of primary energy supply per region in 2032 is shown
in Picture 3.25.
100%
11.6%
90% 18.9% 17.0% 15.9%
24.4% 24.3% 22.0%
28.6%
80% 38.3%
43.3%
25.1% 17.4%
70% 26.3%
18.1% 20.3%
35.9%
60% 7.5%
41.9% 1.1% 23.0%
37.6% 19.0% 13.6%
50% 17.0%
4.7% 24.8%
40%
15.8%
30% 9.8% 55.9% 55.7%
19.2% 16.0% 44.1%
20% 40.4% 40.6% 43.7%
24.0% 26.8%
10%
14.5% 15.8%
0%
Sumatra Java-Bali Kalimantan Sulawesi Numapa Sumatra Java-Bali Kalimantan Sulawesi Nusmapa
BaU OPT
2,900 2,722
2,500 2,401
kWh/Capita
2,100
1,700 1,517
1,704
1,566
1,214
1,300 1,123
1,285
1,169
900
2021 2022 2025 2030 2032
BaU OPT
1.60 1.5
1.4
1.40
TOE/Capita
1.20
1.00 1.1
0.9 1.0
0.80 0.7
0.7
0.8
0.60
2021 2022 2025 2030 2032
BaU OPT
Total emissions in 2032 are projected to increase to 1,015 million tons CO2eq (BaU) and
1,108 million tons CO2eq (OPT). The emission target of the two scenarios is lower than the
emission target in the energy sector NDC, which is 1,355 million tons CO2eq in 2030. The
development of GHG emissions in the two scenarios per sector can be seen in Picture 3.28
below.
1,200
1,108
1,100
977
1,000
Million Ton CO2eq
1,015
900
918
800
724
700 645
608 719
600 644
500
2021 2022 2025 2030 2032
BaU OPT
3.9 3.7
3.5
3.5
Ton CO2eq/Capita
3.4
3.1
3.1
2.7 2.6
2.3
2.2 2.5
2.3
1.9
2021 2022 2025 2030 2032
BaU OPT
Emision Per Capita Ton CO2 eq/ 2.2 2.5 3.4 2.6 3.7
Capita
22%
The graph shows that from the projection results, both in BaU and OPT scenarios, only
coal is expected to reach the target of KEN-RUEN in 2025. Meanwhile, NRE is still quite far
from the target. It is estimated that NRE mix in 2025 will only reach 16.3% in BaU scenario
and 18.6% in OPT scenario considering that NRE target in 2021 has only reached 12.2%.
However, this condition is quite good considering that NRE mix continues to increase every
year. In addition, in OPT scenario, it is projected that NRE target can exceed RUEN projection
in 2031 as shown in Picture 3.31. In line with Indonesia’s commitment to reduce emissions,
it is expected that the growth in NRE use can be further increased to meet Net Zero Emission
target by 2060.
20% 18.6%
14.5%
15% 17.4% 17.1%
16.3%
12.3%
10% 12.3%
5%
0%
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
As an improvement of the previous publication, Indonesia Energy Outlook 2022 does not
only project national energy, but also estimates the energy condition per region until 2032.
The results of energy projection per region in 2032 are shown in Table 3.2 for BaU scenario
and Table 3.3 for OPT scenario. Overall, until 2032 Indonesia’s energy supply-demand is
estimated to still be concentrated in Java-Bali region, followed by Sumatra region. This is in
accordance with the distribution level of population, industry, and infrastructure. Likewise,
in terms of NRE development, Java-Bali is projected to still be the region with the highest
NRE use despite that Sumatra region has the largest percentage.
100
80
60
40
20
-
2022 2023
2021 BaU
100
MILLION TOE
80
60
40
20
-
2022 2023
2021 BaU
Meanwhile, Picture 3.34 shows the level of energy consumption by each region. Until 2023,
the largest final energy will still be in Java-Bali and Sumatra reaching 51.3% and 18.7% of the
national total. Meanwhile, consumption in the other 3 regions (Kalimantan, Sulawesi, and
Nusmapa) are only around 13.6%, 10.2% and 6.1%, respectively.
160
137
140 130
123
120
MILLION TOE
100
80
60
40
20
-
2022 2023
2021 BaU
60
GW
45
30
15
-
2022 2023
2021 BaU
Based on location, the largest power plant capacity is in Java-Bali and Sumatra, which is
estimated to reach 56.3% and 20.7% in 2023. Meanwhile, the smallest power plant capacity
is in Nusmapa Region at 6.2%. The details of power plant projections per region can be seen
in Picture 3.36 below.
100,000
88,238
83,888
76,611
80,000
60,000
MW
40,000
20,000
0
2022 2023
2021 BaU
240 217
206
195
200
MILLION TOE
160
120
80
40
-
2022 2023
2021 BaU
In percentage, in 2023 the energy mix is projected to consist of 14.8% of NRE, followed by
42.3% of coal, 11.6% of gas, and 31.3% of oil as shown in Picture 3.38. As a reference, in
2023, RUEN projects a mix of 18% of NRE, 33% of coal, 23% of gas, and 26% of oil. More
efforts are needed to encourage the utilization of gas and NRE to be in line with the plan
(RUEN).
100%
12.3% 14.3% 14.8%
90%
80%
70% 33.4% 31.0% 31.3%
60%
50% 14.4% 12.0% 11.6%
40%
30%
20% 39.9% 42.7% 42.3%
10%
0%
2022 2023
2021 BaU
240 217
206
195
200
MILLION TOE
160
120
80
40
-
2022 2023
2021 BaU
3.8.4 Emission
CO2 emissions in energy sector in 2023 are projected to continue to increase to 671 million
tons CO2eq in line with the increasing use of fossil energy, especially in the industrial,
transportation and power plant sectors. In 2023, emissions from electricity generation
activities will reach 343 million tons CO2eq or equivalent to 51.1% of total emissions.
Meanwhile, the industrial sector contributes 16.2% of total emissions. In more detail, the
projected emissions by sector can be seen in Picture 3.40.
700 671
644 Industry
608
600
Others
500
Transportation
MILLION TON CO2EQ
400
Household
300
Commercial
200
Power Plant
100
Emisi Fugitive
26 26 26
-
2022 2023 Total
2021 BAU
720 671
644
608
630
MILLION TON CO2 EQ
540
450
360
270
180
90
-
2022 2023
2021 BAU
As an archipelago country with vast area and high population, access to energy for people
especially in rural areas as well as in outermost, remote and disadvantaged areas is a
challenge for the Government of Indonesia. Many ways and strategies have been taken to
supply energy to rural areas as well as to outermost, remote and disadvantaged areas to
give a just development. The problem of limited energy sources, especially in outermost,
remote and disadvantaged areas, is caused by several factors, one of which is the distance
from the village/area which is quite difficult to reach. The difficulty of access and mobility to
outermost, remote and disadvantaged areas has an impact on increasing investment costs
for energy infrastructure development, both network and power plant.
Based on MEMR data in 2021, the national electrification ratio reached 99.45%. It means
around 0.55% people are not yet electrified. Meanwhile, electrified ratio in rural areas in
2020 reached 99.62%. It means that there still 316 unelectrified villages.
Electrified village is the number of villages which receive electricity from PLN, Non-PLN and
Energy Saving Solar Lamp. The Non-PLN electrified village is village which receives electricity
from regional government, private sector or self-subsistence that has been consolidated
and verified by Office of Energy and Mineral Resources in provincial government. To meet
the target of 100% electrification ratio, the government needs to allocate 12.02 trillion
Rupiah to fund infrastructure. Several strategies by MEMR to increase the electrification
ratio is to carry out grid extension massively to connect villages or households located near
PLN grid. The government will also build mini grid and NRE based power plant for people
East
Jambi Kalimantan
Aceh
99.99% 99.99%
99.99%
100%
Electrification Ratio
100% Babel 100% Gorontalo
Notrth North
99.99% 99.99%
Sumatra
100% Kalimantan 100%
Electric Village Ratio
99.99% 99.98%
100% West North North Maluku
Riau Islands 100% Central
Riau Kalimantan Sulawesi 99.99%
99.99% 99.84% 99.93% Sulawesi 99.99% 100%
100% 100% 99.25% 100% West Papua
100%
100% 99.99% Papua
97.55% 95.24%
(45 Village) 95.09%
(271 Village)
Lampung
99.99%
100%
West Sumatra
99.88% Central Java
100% 99.99%
100% Central
Bengkulu KalimantanSouth
West Sulawesi
99.99% 96.22% Kalimantan South East Maluku
99.89% South
100% 100% 99.99% 92.44%
100% Sulawesi Sulawesi
100% 99.99% 98.49% 100%
South
Sumatra 100% 100%
Jakarta
99.58% 99.99%
100% 100%
DIY East Java
99.99% 99.06% NTB NTT
Banten 100% 100%
West Java 99.98% 88.81%
99.99%
99.72% 100% 100%
100%
100% Bali
100%
100%
In addition to the electrification program, the Government has also established the One-
Price Fuel program which has been running since 2017 in order to serve just energy
throughout Indonesia. This policy was motivated by the high fuel price difference in several
regions, especially in eastern Indonesia. The outermost, remote and disadvantaged areas
are the focus of the Government in implementing the One-Price Fuel program so that
affordable fuel prices can be accessed by people in rural areas and in the outermost, remote
and disadvantaged areas.
In order to support the program, the Ministry of Energy and Mineral Resources has stipulated
Ministerial Regulation No. 36 of 2016 on the Acceleration of One-Price for Certain Types
of Fuel and Designated Fuel Nationally to support this policy. This regulation mandates
Business Entity with fuel distribution license to establish distributor in certain locations
Kalimantan
75 locations
Sumatra
Previous Price Sulawesi
56 locations IDR 8,000 - 40,000
31 locations Maluku & Papua
Previous Price
IDR 8,000 - 9,000 Previous Price 108locations
IDR 8,500 - 25,000
Previous Price
IDR 12,000 - 100,000
Java & Madura Bali NTB & NTT
In gas supply side, the government is promoting the development of Mini LNG Terminal
for remote areas that are not covered by gas pipeline. Mini LNG Terminal in Sambera, East
Kalimantan becomes the pilot project of LNG for power plant. This terminal has been used
for Sambera Gas fired power plant, Kutai Kertanegara, East Kalimantan with the capacity of
2x20 MW. The development of this Mini LNG Terminal is based on the Ministry of Energy and
Mineral Resources Decision No.13 of 2020 on Assignment on LNG Supply and Infrastructure
Development and Fuel to LNG Conversion for Power Plant. This Ministerial Decision sets the
target to develop 52 LNG power plant with total capacity of 1.7 GW and total gas supply of
167 BBTUD. This program is expected to save 2.6 million Kilo Liter fuel. The gas infrastructure
development map can be seen in Picture 4.3.
To reduce imports of fuel oil and LPG which continue to increase, the Government is trying to
divert the fulfillment of energy needs with gas. MEMR has built a gas network for households
for the community for free. This natural gas distribution network development program for
households is built in cities or areas close to gas sources.
In 2021, the household gas network or city gas has connected 127,000 households. The
length of the gas pipelines that were successfully built in 2021 increased by 3,263.70 km
or 76.08% from the previous year. The addition was obtained from network development in
25 regencies/cities carried out by PT Perusahaan Gas Negara (PGN) and PT Pertagas Niaga
Through this program, people are expected to obtain a cleaner and safer fuel. Furthermore,
GSEN sets city gas, DME and electric stove program to stop LPG import by 2030.
The target of city gas network in RUEN in 2025 is to connect 4.7 million households. Based on
RUEN, city gas network in RPJMN 2020-2024 is targeted to connect 4 million households in
2024, but the first development in 2009-2021 has connected only 799 thousand households.
This number is far below the target due to budgeting issue. To give an overview, 1 household
connection costs 8-10 million Rupiah.
One of the efforts to reduce LPG imports is to substituted with an electric stove. To reduce
dependence on energy imports, the Government has launched several efforts to reduce
LPG consumption. In GSEN document, several programs to reduce LPG imports (including a
program to reduce LPG consumption) include: Development of City Gas Networks, Increase
in Production Capacity of New Oil Refineries, Development of Dimethyl Ether (DME) and the
use of electric stoves.
In contrast to LPG supply from imports, the electricity supply in Java-Bali, based on RUPTL
2021 data, shows that the installed capacity of power plants in Java-Bali is 41 GW, while
the peak load is 29 GW. There is a reserve margin above 30% in Java-Bali region. One of the
efforts to increase the growth of electricity consumption is by increasing the use of electric
stoves in Java-Bali. The estimated energy consumption for the use of an electric stove with
a power of 2,000 Watt based on a study by the Research and Development Center of the
Ministry of Energy and Mineral Resources is around 82 kWh/month. Meanwhile, the number
of household customers in Java and Bali with a power of 1,300 VA and above is around 10.3
million with details as shown in Table 4.1 below.
West Yogyakarta
Customer Type Banten Jakarta and Central East Java Bali Total
Java
Java
If it is assumed that there is an additional use of electric stoves for 1 million household
customers per year, there will be an increase in electricity consumption of around 82 GWh or
414 MW. If all household customers with a power of 1,300 VA and above use electric stoves,
there will be an increase in electricity consumption of 841 GWh or an increase in load of 4.2
GW.
4
Rich Gas
LPG Imported
2
Dimethyl Ether
0
2015 2020 2025 2030 2035 2040
In 2022, the implementation of the electric stove program is targeted at around 300
thousand. Currently, a pilot project and 2,000 electric stoves program for each household
in Solo and Bali have been carried out. The package consists of an electric stove unit, a set
of cooking utensils, and an MCB to increase power. The estimated cost for the electric stove
program is 1.8 million per package. Thus, the total funds needed to distribute packages
to 300 thousand households are around Rp540 billion. It is hoped that the use of electric
stoves can increasing electricity consumption in Java-Bali. Based on calculations, the use of
electric stoves is estimated to absorb 4.2 GW from an excess supply of 12 GW.
The government has regulated the use of electric vehicle in Presidential Regulation No. 55
of 2019 on Acceleration of Baterry-based Electric Vehicle for Land Transportation. This
Presidential Regulation sets the duties of related ministries in the area of infrastructure
development, research and development, regulator, and 35% local content component.
To promote this Presidential Regulation, the government through Ministry of Industry has
formulated roadmap of electric vehicle development as set in Ministerial Regulation No.
27 of 2020. In this Minister of Industry Regulation, the target of electric vehicle in 2030 is
627 thousand units, while electric motorcycle is 9 million units. Currently, the Ministry of
Industry is coordinating with Coordinating Ministry of Maritime and Investment to amend
Minister of Industry Regulation No. 27 of 2020 on roadmap of battery-based electric vehicle.
1,600
EV
Import Biofuel
1,200 Diesel
Diesel Production
800
400
Gasoline Production
Dimethyl Ether
0
2015 2020 2025 2030 2035 2040
Energy transition is done through transformation of fossil fuel using clean technology,
acceleration of new and renewable energy use, and energy conservation. Energy
transformation into Net Zero Emission is expected to create energy independence, energy
resilience, sustainable development, climate resilience and low carbon condition.
Utilization of fossil fuels such as coal using clean technology is carried out by developing
CCT (Clean Coal Technology). CCT is the use of high-efficiency technology in coal fired
PP to reduce emissions from several pollutants and waste, as well as increase the energy
from each ton of coal. Meanwhile, oil and gas as well as coal use CCUS (Carbon Capture,
Utilization, and Storage) technology.
The Indonesian government has developed Ultra Super Critical (USC) technology in coal
fired PP starting with the construction of Java-7 coal fired PP located in Serang (Banten) in
2017. In 2021, there are several USC coal fired PP under construction including Java 9 & 10
coal fired PP, Central Java (Batang) coal fired PP, and Java 4 (Tanjung Jati B) coal fired PP.
The acceleration on new renewable energy use is done by substituting primary energy and
final energy to biofuel, co-firing technology, fuel source from Refuse-Derived Fuel (RDF)
and Solid Recovered Fuel (SFR), additional NRE power plant capacity with the focus on
Rooftop solar PP, and non electricity NRE and non-biofuel utilization such as briquete,
biogas and Compressed Biomethane Gas (CBG).
Through the use of battery-based electric vehicle, the battery industry and hydrogen
technology are also expected to support the acceleration of new renewable energy use. In
renewable energy sector, Smart Energy program optimizes renewable energy production
system by maximizing efficiency, reducing cost, and enhancing security. In electricity, Smart
Grid development is expected to reduce number of power plant needed to supply electricity
and to integrate renewable energy sources. Meanwhile, the technology being developed is
nuclear, coal gasification, liquified coal, tidal, hydrogen, and Carbon Capture Storage.
The realization of fuel subsidy continues to decline despite of a significant increase in 2018
to 38.9 trillion Rupiah due to an increase in diesel oil subsidies. It decreased again in 2020
to 14.9 trillion Rupiah due to the Covid-19 pandemic. In 2021, it increased again by around
8.3% to 16.2 trillion Rupiah.
The realization of LPG subsidies in 2016 was 24.9 trillion Rupiah which continued to increase
until 2018 to 58.1 Trillion Rupiah. This increased LPG burden is another form of commitment
to shift the kerosene subsidy to clean energy. Meanwhile, in 2019 there was a decrease of
around 6.9% caused by the decline in gas prices on the world market. It continued to decline
in 2020 to 32.8 Trillion Rupiah due to the Covid-19 pandemic. However, in 2021 LPG subsidy
increased again by around 106.1% from the previous year to 67.6 trillion Rupiah.
Similar to the realization of fuel subsidies, the realization of electricity subsidies also fluctuated
from 63.1 trillion Rupiah in 2016 to 49.9 trillion Rupiah in 2021. The development of energy
subsidy realization in 2016-2021 can be seen in Picture 4.6 below.
180.0
153.5
160.0
133.7
140.0
118.5
TRILLION RUPIAH
120.0 106.8
97.6 95.7
100.0
80.0
60.0
40.0
20.0
-
2016 2017 2018 2019 2020 2021
In early September 2022, the Government of Indonesia reduced fuel subsidy that it leads to the
increasing price of several types of fuel. Based on the explanation from the Minister of Finance,
this subsidy reduction was carried out because the burden of subsidies and compensation for
the energy sector in 2022 was very high, reaching 502.4 trillion rupiah. The energy subsidy
in 2022 is 208.9 trillion rupiah consisting of subsidy for fuel, LPG and electricity. Then
there is energy compensation in 2022 of 234.6 trillion rupiah and underpayment of energy
compensation in 2021 of 108.4 trillion rupiah.
Nuclear Power Plants (Nuclear PP) have various advantages over other power plants.
Nuclear power plants produce very large and reliable electricity. Nuclear power plants can
operate for two years non-stop without changing fuel. Nuclear power plants have various
types of technology, providing stable and large-scale electricity supplies ranging from 10
MWe to 1,600 MWe per unit. Nuclear power plants rely more on technological developments
(technology bases) compared to energy sources (resource bases) so that they do not
depend on the location of the nuclear fuel source. Nuclear power plants has the quality in
terms of environmental externalities. Nuclear power plants have very little environmental
impact with zero local emissions (SOx, NOx, and fly ash) and minimal global COx emissions.
With a small environmental impact, nuclear power plants also have the lowest mortality
percentage compared to other types of power plants. However, some countries are reluctant
to build nuclear power plants due to security and safety risks.
For countries that do not have nuclear power plants and intend to develop nuclear power
plants, the International Atomic Energy Agency (IAEA) highly recommends them to form a
Nuclear Energy Program Implementing Organization (NEPIO) as part of the government’s
commitment to nuclear energy development.
Therefore, in 2021 the Minister of Energy and Mineral Resources Decision No. 250.K/HK.02/
MEM/2021 on the Preparation Team for the Establishment of a Nuclear Energy Program
Implementing Organization has been issued.
Hydrogen fuel is a zero emissions fuel that is used as fuel for electricity generation along
with oxygen by using a unit called a hydrogen fuel cell. Similar to a battery, a fuel cell has
an anode and cathode poles where hydrogen (H2) and oxygen (O2) are supplied to the two
different poles as shown in Picture 4.7 below.
In Indonesia, hydrogen development is still in the research and pilot project stages and there
are no commercial projects yet. Research on hydrogen as a fuel has been carried out by the
Agency for the Assessment and Application of Technology (BPPT), the University of Indonesia
(UI), the Bandung Institute of Technology (ITB) and Lemigas since 2007. Furthermore,
in 2012 ITB made the concept of a fuel cell car and the Korea International Cooperation
Agency (KOICA) provided a grant to the Indonesian government for the construction of a
fuel cell pilot project with a capacity of 300 kilowatts (kW) in Ancol, Jakarta. Then in 2014,
the Indonesian Association for Fuel Cell and Hydrogen Energy (INAFHE) was established to
accelerate the development of hydrogen in Indonesia. In 2017, PT Telkomsel developed a
fuel cell at the Base Transceiver Station (BTS) as backup power. After that, in 2018, BPPT
and Toshiba ESS signed a cooperation agreement regarding the Development of the H2One
Autonomous Hydrogen Energy System for Off Grid Systems. In 2019, the Ministry of Energy
and Mineral Resources, PT Kereta Api Indonesia (KAI) and Allstorm began collaborating
in the development of hydrogen-fueled trains. PT HDF Energi took the initiative to develop
green hydrogen from hybrid Solar PP and Wind PP in Sumba Island with a capacity of 7-8
MW during the day and 1-2 MW at night from hydrogen storage. In addition, there is also
cooperation between PT Pertamina and GIZ in the development of a green hydrogen pilot
project from geothermal energy.
The application of energy conservation and efficiency can reduce energy imports, maximize
energy use for domestic needs and reduce exports, increase Reliability, control energy
demand growth and encourage energy diversification by maximizing the use of NRE in
order to increase national energy security. On the other hand, energy conservation and
efficiency can increase economic growth and competitiveness because it can reduce energy
intensity, increase industrial competitiveness, reduce energy production costs to lead to
more affordable energy costs. Energy conservation and efficiency is also seen as a solution
to reduce the greenhouse gas emissions and address the climate change issue which is
very much needed to fulfill international obligations under the United Nations Framework
Convention on Climate Change (UNFCCC).
An effective and efficient energy use management is aimed to produce maximum products
through structured and well-documented technical actions that it gives an impact on the
optimal use of raw materials and supporting materials. The systematic implementation
of Energy Management can be done through the implementation of ISO 50001-Energy
Management System. There are four main stages in ISO 50001-Energy Management
System, including:
a. Plan stage, namely to review energy and establish baselines, energy performance
indicators, goals, targets and action plans needed to provide results that will improve
energy performance in accordance with the organization’s energy policy
b. Do stage, namely to implement the energy management action plan
c. Check stage, namely to monitor and measure the processes and key characteristics of
operations that determine energy performance toward energy policies and objectives
and report the results
d. Act stage, namely to take action to continuously improve energy performance and Energy
Management System (ENMs)
In 2021, there will be five ISO 50001-certified buildings, namely The Agency for the
Assessment and Application of Technology (BPPT); Directorate General of New, Renewable
Energy and Energy Conservation, Ministry of Energy and Mineral Resources; Secretariate
General of the Ministry of Energy and Mineral Resources; Ngurah Rai Airport (PT. Angkasa
Pura I); and Terminal 3 Soekarno Hatta Airport (PT. Angkasa Pura II). In addition, there are
49 energy sector companies that have been certified to ISO 50001 consisting of 31 power
plants, 14 oil and gas fields, and 4 mining companies. On the other hand, there are also 78
industrial sector companies that have been certified to ISO 50001 consisting of 21 food and
beverage companies, 17 manufacturing companies, 6 textile companies, 14 agro and paper
companies, and 20 chemical companies.
The assessment of Indonesia’s energy security has been carried out with an energy security
model using 4A aspects (Picture 4.9), namely Availability (availability of energy sources both
from domestic and abroad), Affordability (affordability of energy investment costs, ranging
from exploration, production and distribution costs to consumer affordability to energy
prices), Accessibility (ability to access energy sources, energy network infrastructure,
including geographic and geopolitical challenges), Acceptability (energy use that puts
concern on land, sea and air environments including public acceptance of nuclear, and
so on). It also uses weighting method using AHP (Hierarchical Process Analysis) and
assessment by experts. Since the assessment from 2004 to 2019, the scale of Indonesia’s
energy security value has always increased from year to year.
Energy security assessment is conducted to see Indonesia’s ability to provide energy in the
country through selected aspects and indicators during the previous one-year period.
AFFORDABILITY
AVAILABILITY NATIONAL
The affordability of energy investment
Availability of energy sources, both ENERGY SECURITY costs, starng from the costs of
domesc and foreign exploraon, producon, and distribuon,
to the affordability of consumers to energy
prices
ACCEPTABILITY
1. In 2032, final energy consumption of BaU scenario will increase with an average growth
of 4.8% per year to 207 million TOE, with transportation and industrial sectors are the
largest share of final energy consumption with 42.6% and 37.9% respectively. While in
the OPT scenario, final energy consumption in the next 10 years will increase by 6.6% per
year to 248 million TOE with the largest share coming from the industrial sector by 49.2%
and 36.4% from transportation, this growth were in line with targets towards developed
countries in 2045.
2. In 2021, household sector is the largest electricity consumption, but the situation would
change in 2032 OPT scenario, where both industrial and transportation sector are the
largest electricity consumers with 46.6% and 19.7% respectively, as a result of the high
energy demand growth in outside Java industry sector and the growing use of electric
vehicles since 2022.
3. Java-Bali region will still being the biggest consumer of final energy in 2032, around
45.7% (BaU) and 48.3% (OPT) shares from total final energy consumption. However, the
largest primary energy mix from NRE in 2032 in the BaU scenario is the Sumatra region
(28.6%), and in the OPT scenario is the Kalimantan region (43.3%).
4. The NRE share on primary energy mix will still below the RUEN target in 2025, around
16.3% in the BaU scenario and 18.6% in the OPT scenario. However, based on the OPT
scenario, in 2030 the NRE achievements will exceed the RUEN target, reaching 26.4%.
5.2. RECOMMENDATION
1. To achieve the NZE 2060 target, Indonesia must have high economic growth so that it can
become a developed country through growth in the industrial sector, especially outside
Java Island.
2. Massive use of NRE in the power generation sector need to be achieved, especially coal
co-firing PP and Solar PP as well as increasing the blend of biodiesel and bioethanol
utilization so that the achievement of the EBT mix in 2030 can exceed the RUEN target
and be in line with the NZE target in 2060.
3. Massive use of electric vehicles and electric stoves, especially in the Java-Bali region,
needs to be implemented immediately to absorb excess power/electricity.
Electricity
2 TWh 269 281 293 306 321 337 354 372 391 412 433
Demand
Industrial
Sector Final Million
3 46 48 51 54 56 59 62 66 70 74 79
Energy TOE
Demand
Transportation
Million
4 Sector Final 53 56 60 63 67 70 74 77 81 85 88
TOE
Energy Demand
Household
Sector Final Million
5 21 21 21 21 22 22 22 22 22 22 22
Energy TOE
Demand
Commercial
Million
6 Sector Final 8 9 9 10 10 11 12 12 13 14 15
TOE
Energy Demand
Others Sector
Million
7 Final Energy 2 2 2 2 2 2 3 3 3 3 3
TOE
Demand
Million
Green House Ton
9 644 671 700 719 765 802 838 877 918 968 1,015
Gas Emission
CO2
Power Plan
10 GW 84 88 91 96 102 107 111 115 119 122 125
Capacity
Electricity
11 TWh 310 322 335 348 365 383 402 422 443 465 489
Production
Electricity
2 TWh 280 305 333 365 400 440 483 532 587 642 702
Demand
Industrial Sector
Million
3 Final Energy 48 52 57 63 69 76 83 92 102 111 122
TOE
Demand
Transportation
Million
4 Sector Final 52 55 58 61 65 68 72 76 81 86 91
TOE
Energy Demand
Household Sec-
Million
5 tor Final Energy 21 21 21 21 22 22 22 22 22 22 22
TOE
Demand
Commercial
Million
6 Sector Final 8 8 8 9 9 9 9 10 10 10 10
TOE
Energy Demand
Others Sector
Million
7 Final Energy 2 2 2 2 2 3 3 3 3 3 3
TOE
Demand
Million
Green House Ton
9 645 671 699 724 774 824 872 927 977 1,042 1,108
Gas Emission
CO2
Power Plan
10 GW 84 91 97 104 112 123 133 144 157 169 182
Capacity
Electricity Pro-
11 TWh 322 350 380 414 454 499 548 603 664 725 791
duction
Power Plan
10 GW 17 18 19 21 21 21 21 22 23 23 23
Capacity
Electricity
11 TWh 51 53 55 58 61 64 67 71 75 79 84
Production
Power Plan
10 GW 17 18 19 21 21 22 23 24 27 29 32
Capacity
Electricity
11 TWh 54 59 65 72 80 90 100 112 125 139 154
Production
Power Plan
10 GW 48 50 51 53 58 63 66 68 71 74 78
Capacity
Electricity
11 TWh 217 225 234 244 256 269 283 297 312 328 344
Production
Power Plan
10 GW 48 50 52 54 61 68 74 81 88 95 102
Capacity
Electricity
11 TWh 222 237 254 273 299 326 357 391 428 467 509
Production
Power Plan
10 GW 6 6 7 7 7 7 7 8 8 8 8
Capacity
Electricity
11 TWh 14 14 15 16 16 17 18 19 20 21 22
Production
Power Plan
10 GW 6 10 12 14 16 18 20 22 25 27 30
Capacity
Electricity
11 TWh 16 20 23 27 30 33 37 40 45 48 51
Production
Power Plan
10 GW 8 9 9 9 9 9 9 9 10 10 10
Capacity
Electricity
11 TWh 14 15 15 16 17 17 18 19 20 21 21
Production
Power Plan
10 GW 8 8 8 8 9 9 9 9 10 10 10
Capacity
Electricity
11 TWh 15 17 19 21 24 27 30 33 37 41 44
Production
Power Plan
10 GW 5 5 6 6 6 7 7 7 7 7 7
Capacity
Electricity
11 TWh 14 15 15 15 15 16 16 17 17 17 18
Production
Power Plan
10 GW 5 5 5 6 6 6 7 7 8 8 8
Capacity
Electricity
11 TWh 15 16 18 20 21 23 25 27 29 31 33
Production
INDONESIA ENERGY
OUTLOOK
2 0 2 2
SECRETARIATE GENERAL
THE NATIONAL ENERGY COUNCIL