Indonesia is setting bold ambitions with its Indonesia renewable energy target, projecting that 34 percent of its electricity consumption will come from renewables, solar, hydro, geothermal, wind, and bioenergy, by 2034. The plan, revealed in PLN’s Rencana Usaha Penyediaan Tenaga Listrik (RUPTL) 2025–2034, outlines how the country intends to build a sustainable, diversified power system over the next decade.

Foundations of the Indonesia Renewable Energy Target

PLN’s latest RUPTL, ratified by Indonesia’s Ministry of Energy and Mineral Resources, aims to add 42.6 GW of new renewables, accounting for 61 percent of all additional power capacity through 2034—as part of the Indonesia renewable energy target. Here's the planned breakdown:

• Solar: 17.1 GW
• Hydropower: 11.7 GW
• Wind: 7.2 GW
• Geothermal: 5.2 GW
• Bioenergy & others: ~1 GW

To support this green transition, 10.3 GW of battery and pumped hydro storage will also be developed to balance intermittent renewables. Despite this surge, fossil fuel plants—mainly gas (10.3 GW) and some remaining coal (6.2 GW)—will continue to be part of the mix, ensuring grid stability during the transition. The combination of renewables and energy storage aims to create a reliable and cleaner electricity mix.

This strategic distribution of renewable energy sources not only diversifies Indonesia’s power generation but also reduces its dependence on fossil fuels. Solar energy is expected to lead the charge due to Indonesia's abundant sunshine and declining costs of photovoltaic technology. Hydropower and geothermal, already well-established in certain regions, will provide base-load power, while wind energy is being tapped in coastal and island areas.

Progress, Challenges, and Policy Instruments

Currently, Indonesia’s renewable electricity share remains at around 14 percent (14.1% in early 2025). However, the RUPTL anticipates steady growth: 15.9 percent by 2025, rising to 21 percent by 2030, and reaching the Indonesia renewable energy target of 34 percent by 2034. This represents a sharp shift from earlier, more modest targets: the previous RUPTL had aimed for just 17–19 percent renewables by 2025.

To reach these goals, several policy mechanisms are in place:

• Regulatory support via RUPTL guidelines
• Private sector incentives, including Independent Power Producer (IPP) participation
• Investment in transmission infrastructure—48,000 km of new lines to connect remote resources
• Capacity for renewable plant storage to mitigate intermittency

Yet challenges persist: past RUPTL implementation rates have been low—only around 1.6 GW of renewables were added in early 2025, far below targets. Experts highlight prolonged PPA negotiations, land acquisition delays, and dominant coal usage as key hurdles. Bureaucratic bottlenecks and regulatory uncertainties have also discouraged foreign and local investors from committing to large-scale renewable projects.

Moreover, financial incentives such as feed-in tariffs or tax breaks have been inconsistent or insufficient to accelerate the build-out of clean energy. Addressing these issues will be vital for the successful implementation of the Indonesia renewable energy target.

Strategic Implications of the Target

Grid Resilience and Energy Security

More solar, wind, and geothermal capacity will reduce Indonesia’s reliance on imported fossil fuels and help stabilize volatile energy prices. By tapping domestic renewable resources, the country enhances its energy sovereignty and decreases exposure to international market fluctuations.

Climate Commitments Alignment

Boosting renewables supports Indonesia’s Nationally Determined Contributions (NDC), aiming for a 29% emissions reduction by 2030, and helps lay groundwork for its 2060 net-zero pledge. With global scrutiny intensifying on emission-heavy economies, Indonesia’s shift to renewables aligns with international climate frameworks and enhances its credibility on the global stage.

Catalyzing Private Investment

Openings for IPPs in both generation and grid infrastructure aim to unlock private capital. Transmission expansion, solar+storage partnerships, and green auctions are gaining traction. Clear and consistent policy direction, along with streamlined permitting processes, can accelerate participation from foreign direct investors and development banks.

Leveraging Indonesia's Resource Wealth

With vast geothermal potential—enough to rank second globally—hydro, solar, and wind resources, the plan taps Indonesia's natural advantages. The islands of Java, Sumatra, Sulawesi, and East Nusa Tenggara offer unique renewable resource profiles that, if managed well, can decentralize power generation and promote regional development.

But critics note that delays in coal plant retirement and continued reliance on gas may slow the energy shift. Calls are growing to phase out coal by 2040 and strengthen transition regulations. While gas is often promoted as a "bridge fuel," long-term reliance on it could contradict emission reduction goals.

Roadmap to 2040 and Beyond

Efforts under the Indonesia renewable energy target are stepping stones toward more ambitious goals:

• RUPTL outlines 47 GW new renewables by 2034, with potential to scale to 75 GW by 2040.
• Institute for Essential Services Reform (IESR) and Ember propose accelerating coal retirements (3 GW/year) and adding 65 percent renewables by 2040, supplemented by battery storage.
• Just Energy Transition Partnership (JETP)-backed Comprehensive Investment and Policy Plan (CIIP) explores upping the renewables share to 44% by 2030 via 37 GW solar and wind rollouts.

These trajectories align with global trends, with costs of solar, wind, and batteries dropping dramatically, solar now at ~$0.05/kWh, making renewables increasingly competitive. As the levelized cost of electricity (LCOE) from renewables continues to fall, market forces will increasingly favor clean energy even in the absence of aggressive policy support.

Recommendations for Fast-Tracking the Target

To accelerate progress on the Indonesia renewable energy target, several measures must be prioritized:

1. Streamlined Approvals
2. Simplify permitting, land acquisition, and PPA timelines to reduce deployment delays.
3. Transparent Auctions
4. Competitive auctions with grid and storage coordination will attract IPPs and ensure efficiency.
5. Grid Investment
6. Expand and reinforce transmission infrastructure to connect remote wind, solar, and geothermal sites.
7. Storage Scale-Up
8. Prioritize utility-scale batteries and pumped hydro to manage peak demand and renewables intermittency.
9. Coal Phase-Out Plan
10. Commit to decommissioning coal plants by 2040 and retooling communities for green energy employment.
11. Education and Workforce Training
12. Develop clean energy technical education programs to build a renewable-ready labor force.
13. Public-Private Collaboration
14. Strengthen collaboration between government agencies, PLN, private developers, and civil society to co-design and implement effective energy transition strategies.

Implementing these steps could allow Indonesia to meet, and even exceed, its Indonesia renewable energy target, providing cleaner power, economic growth, and global climate leadership.

The Indonesia renewable energy target of achieving 34 percent renewables in the electricity mix by 2034 marks a bold pivot toward sustainable development. Backed by RUPTL, storage plans, clearer policies, and international support, the ambition is grounded in concrete steps. But to close the gap between aspiration and reality, Indonesia must accelerate project execution, power market reforms, and coal retirement.

If mobilized effectively, this target will significantly reduce carbon emissions, enhance energy security, and create economic opportunities across the archipelago. Ultimately, Indonesia’s journey could become an example for emerging economies balancing rapid growth with environmental stewardship.