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Energy in Indonesia

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Energy in Indonesia

Energy in Indonesia describes energy and electricity production, consumption, import and export in Indonesia. Energy policy of Indonesia will describe the politics of Indonesia related to energy more in detail. In 2009 Indonesia produced oil, coal, natural gas and palm oil, utilized also as energy raw material in 2010. Renewable energy potential in Indonesia is high: solar, wind, hydro and geothermal energy. Tropical rain forests and peat land areas have extensive coal storage. Indonesia is geologically unstable country. According to IEA Indonesia was the 10th top natural gas producer in 2009: 76 billion cubics (bcm) 2.5% of world production of which 36 bcm was exported. In 2009 Indonesia was the 5th top coal producer: 263 million tonnes hard coal and 38 million tonnes brown. The majority of this, 230 Mt of hard coal, was exported.[1]


  • Overview 1
  • Energy by sources 2
    • Fossil Fuel Energy Sources 2.1
      • Coal 2.1.1
      • Oil 2.1.2
      • Gas 2.1.3
      • Shale 2.1.4
      • Coal Bed Methane 2.1.5
    • Renewable energy sources 2.2
      • Biomass 2.2.1
      • Hydroelectricity 2.2.2
      • Geothermal energy 2.2.3
      • POME Power Generator 2.2.4
      • Wind power 2.2.5
      • Solar photovoltaic electricity 2.2.6
  • Use of energy 3
    • Transport sector 3.1
    • Electricity sector 3.2
  • Major energy companies in Indonesia 4
  • Global warming 5
  • Business 6
  • See also 7
  • References 8


Energy in Indonesia[2]
Capita Prim. energy Production Export Electricity CO2-emission
year Million TWh TWh TWh TWh Mt
2004 217.6 2,024 3,001 973 104 336
2007 225.6 2,217 3,851 1,623 127 377
2008 228.3 2,311 4,035 1,714 134 385
2009 230.0 2,349 4,092 1,787 140 376
2010 239.9 2,417 4,436 2,007 154 411
2012 242.3 2,431 4,589 2,149 166 426
Change 2004-10 10.2% 19.4% 48% 106% 48% 22%
Mtoe = 11.63 TWh

According to IEA energy production increased 34% and export 76% from 2004 to 2008 in Indonesia.

Energy by sources

Fossil Fuel Energy Sources


Indonesia is well-supplied with medium and low-quality thermal coal. At current rates of production, Indonesia's coal reserves are expected to last for over 80 years. In 2009 Indonesia was the world's second top coal exporter sending coal to, for example, China, India, Japan and Italy. Kalimantan (Borneo) and South Sumatra are the centres of Indonesia’s coal mining. In recent years, production in Indonesia has been rising rapidly, from just over 200 mill tons in 2007 to over 400 mill tons in 2013. Recently (December 2013), the chair of the Indonesian Coal Mining Association said the production in 2014 may reach 450 mill tons.[3]

The Indonesian coal industry is rather fragmented. Output is supplied by a few large producers and a large number of small firms. Large firms in the industry include the following:[4]

  • PT Bumi Resources (the controlling shareholder of large coal firms PT Kaltim Prima Coal and PT Arutmin Indonesia)
  • PT Adoro Energy
  • PT Kideco Jaya Agung
  • PT Indo Tambangraya Megah
  • PT Berau Coal
  • PT Tambang Batubara Bukit Asam (state-owned)

Coal production poses risks for deforestation in Kalimantan. According to one Greenpeace report, a coal plant in Indonesia has decreased the fishing catches and increased the respiratory-related diseases,[5]


Oil is a major sector in the Indonesian economy. During the 1980s, Indonesia was a significant oil-exporting country. Since 2000, domestic consumption has continued to rise while production has been falling, so in recent years Indonesia has begun importing increasing amounts of oil. Within Indonesia, there are considerable amounts of oil in Sumatra, Borneo, Java, and West Papua Province. There are said to be around 60 basins across the country, only 22 of which have been explored and exploited.[6] Main oil fields in Indonesia include the following:

  • Minas. The Minas field, in Riau in Sumatra, operated by the US-based firm Chevron Pacific Indonesia, is the largest oil block in Indonesia.[7] Output from the field is around 20-25% of current annual oil production in Indonesia.
  • Duri. The Duri field, in Riau in Sumatra, is operated by the US-based firm Chevron Pacific Indonesia.[8]
  • Cepu. The Cepu field, operated by Mobil Cepu Ltd which is a subsidiary of US-based Exxon Mobil, is on the border of Central and East Java near the town of Tuban. The field was discovered in March 2001 and is estimated to have proven reserves of 600 million barrels of oil and 1.7 trillion cu feet of gas. Development of the field has been subject to on-going discussions between the operators and the Indonesian government.[9] Output is forecast to rise from around 20,000 bpd in early 2012 to around 165,000 bpd in late 2014.[10]


There is growing recognition in Indonesia that the gas sector has considerable development potential.[11] In principle, the Indonesian government is supporting moves to give increasing priority to investment in national gas. In practice, private sector investors, especially foreign investors, have been reluctant to invest because many of the problems that are holding back investment in the oil sector also affect investment in gas. At present (mid 2013), main potential gas fields in Indonesia are believed to include the following:

  • Mahakam. The Mahakam block in East Kalimantan, under the management of Total E&P Indonesie with participation from the Japanese oil and gas firm Inpex, provides around 30% of Indonesia's natural gas output. In mid 2013 the field was reported to be producing around 1.7 bill cu feet of gas per days as well as 67,000 barrels of condensate. Discussions are currently underway about the details of the future management of the block involving a proposal that Pertamina take over all or part of the management of the block.[12] Recently (October 2013) it was reported that Total E&P Indonesie had announced that it would stop exploration for new projects at the field.[13]
  • Arun. The Arun field in Aceh has been operated by ExxonMobil since the 1970s. The reserves at the field are now largely depleted so production is now slowly being phased out. At the peak, the Arun field produced around 3.4 mill cu feet of gas per day (1994) and about 130,000 of condensate per day (1989). ExxonMobil affiliates also operate the nearby South Lhoksukon A and D fields as well as the North Sumatra offshore gas field.[15]
  • East Natuna. The East Natuna gas field (formerly known as Natuna D-Alpha) in the Natuna Islands in the South China Sea is believed to be one of the biggest gas reserves in Southeast Asia. It is estimated to have proven reserves of 46 trillion cu feet (tcf) of gas. The aim is to begin expanded production in 2020 with production rising to 4,000 mmscf (million standard cu feet) per day sustained for perhaps 20 years.[16]


There is potential for tight oil and shale gas in northern Sumatra and eastern Kalimantan.[17] There are estimated to be 46 trillion cubic feet of shale gas and 7.9 billion barrels of shale oil which could be recovered with existing technologies.[18] Pertamina has taken the lead in using hydraulic fracturing to explore for shale gas in northern Sumatra. Chevron Pacific Indonesia and NuEnergy Gas are also pioneers in using fracking in existing oil fields and in new exploration. Environmental concerns and a government-imposed cap on oil prices present barriers to full development of the substantial shale deposits in the country.[19] Sulawesi, Seram, Buru, Irian Jaya in eastern Indonesia have shales that were deposited in marine environments which may be more brittle and thus more suitable for fracking than the source rocks in western Indonesia which have higher clay content.[18]

Coal Bed Methane

With 453 trillion cubic feet Coal Bed Methane (CBM) reserve mainly in Kalimantan and Sumatra, Indonesia has potential to redraft its energy charts as United States with its Shale Gas. But with low enthusiastic to develop CBM project, the government only targeted 8.9 million metric standard cubic feet per day (mmscfd) for 2015.[20]

Renewable energy sources

The contribution of renewable sources of energy to energy supply as a percentage of total primary energy supply in 2010 was 34.5%.[21] Renewable generation sources supplied 16% of Indonesia's electricity in 2011. Indonesia has set a target of 26% of electricity generation from renewable sources by 2025.[22]


An estimated 55% of Indonesia's population, i.e. 128 million people primarily rely upon traditional biomass (mainly wood) for cooking.[23] Reliance on this source of energy has the disadvantage that poor people in rural areas have little alternative but to collect timber from forests, and often cut down trees, in order to collect wood for cooking.


Indonesia has set a target of 2 GW installed capacity in hydroelectricity, including 0.43 GW micro hydro, by 2025.[24]

Geothermal energy

Indonesia uses some geothermal energy.[25] According to the Renewable Energy Policy Network's Renewables 2013 Global Status Report, Indonesia has the third largest installed generating capacity in the world. With 1.3 GW installed capacity, Indonesia trails only the United States (3.4 GW) and the Philippines (1.9 GW). However it leads Mexico (1.0 GW), Italy (0.9 GW), New Zealand (0.8 GW), Iceland (0.7 GW), and Japan (0.5 GW).[26] Current official policy is to encourage the increasing use of geothermal energy for electricity production. Geothermal sites in Indonesia include the Wayang Windu Geothermal Power Station and the Kamojang plant, both in West Java.

The development of the sector has been proceeding rather more slowly than hoped. Expansion appears to be held up by a range of technical, economic, and policy issues which have attracted considerable comment in Indonesia. However, it has proved difficult to formulate policies to respond to the problems.[27]

POME Power Generator

A pilot project of Palm Oil Mill Effluent (POME) Power Generator with capacity of 1 Megawatt has been inaugurated in September 2014.[28] Indonesia has many Palm Oil Mills.

Wind power

A very small amount of (off-grid) electricity is generated using wind power. For example, a small plant was established at Pandanmino, a small village on the south coast of Java in Bantul Regency, Yogyakarta Province, in 2011. However it was established as experimental plant and it is not clear whether funding for long-term maintenance will be available.[29]

Solar photovoltaic electricity

The Indonesian solar PV sector is relatively underdeveloped but has significant potential. However for a range of reasons, it is unlikely that it will be practical to expand electricity output from solar sources in Indonesia quickly. A range of technical, financial, economic and social constraints are likely to be constraints on the rapid installation of solar power in Indonesia, including in rural areas.[30]

Output from the solar photovoltaic sector is almost exclusively set aside for decentralised rural electrification. In 2011 the sector produced a relatively small amount of electricity -- only 22 GWh.[31]

Use of energy

Transport sector

Much energy in Indonesia is used for domestic transportation.

Electricity sector

Access to electricity

Over 50% of households in 2011 had an electricity connection. An estimated 63 million people in 2011 did not have direct access to electricity.[32]


The electricity sector, dominated by the state-owned electricity utility Perusahaan Listrik Negara, is another major consumer of primary energy.

Major energy companies in Indonesia

Indonesian firms

Foreign firms

  • US-based firm PT Chevron Pacific Indonesia is the largest producer of crude oil in Indonesia; Chevron produces (2014) around 40% of the crude oil in Indonesia
  • Total E&P Indonesie which operates the East Mahakam field in Kaliamantan and other fields
  • ExxonMobil is one of the main foreign operators in Indonesia
  • Statoil, a Norweigian multinational firm, which has been operating in Indonesia since 2007, especially in Eastern Indonesia
  • BP which is a major LNG operator in the Tangguh gas field in West Papua.
  • ConocoPhilips which currently operates four production-sharing contracts including at Natuna and in Sumatra.

Global warming

The CO2 emissions of Indonesia in total were over Italy in 2009. However, in all greenhouse gas emissions including construction and deforestation in 2005 Indonesia was 4. top after China, US and Brazil.[33]


According to Forbes list of billionaires (2011) most Indonesian billionaires have made their wealth or diversified with their wealth in coal or plantation business, including tobacco and palm oil plantations. Diversification includes hotels and construction[34]

Coal 2013: According to Forbes Indonesian billioners from coal business in 2013 were: 1) Low Tuck Kwong $1.7 B coal mining company Bayan Resources, 2) Theodore Rachmat $1.7 B palm oil business Triputra Agro Persada co-owned with Benny Subianto, 3) Edwin Soeryadjaya $1.3 B Adara Energy (coal), share in a plantation company, Interra Resources, an oil and gas exploration outfit, 4) Kiki Barki $1.2 B, 5) Garibaldi Thohir $1.15 B and 6) Benny Subianto, shareholders in coal miner Adaro Energy, holdings in palm oil producer Triputra Agro Persada and rubber manufacturer Kirana Megatara.[35] $1.1 B.[36]

Palm oil producer Triputra Agro Persada will reportedly increase its planted area by about two-thirds by 2015.[38]

See also


  1. ^ "Key World Energy Statistics 2010" (PDF). International Energy Agency. 2010. Retrieved 2011-09-13. 
  2. ^ IEA Key World Energy Statistics Statistics 2013, 2012, 2011, 2010, 2009, 2006 IEA October, crude oil p.11, coal p. 13 gas p. 15
  3. ^ Raras Cahyafitri, 'Coal minders to boost production', The Jakarta Post, 31 December 2013.
  4. ^ Raras Cahyafitri, 'Coal miners sell more in first half, but profits remain stagnant', The Jakarta Post, 5 August 2013.
  5. ^ The True Cost of Coal Greenpeace 27.11.2008
  6. ^ Randgga D. Fadillah, '80 percent of oil and gas revenues pay for subsidies', The Jakarta Post, 21 May 2012.
  7. ^ For some details of Chevron's operations in Indonesia, see the Chevron official Indonesia Fact Sheet.
  8. ^ Ahmal W. Azwar, 'Chevron kicks off Duri field expansion in Sumatra', The Jakarta Post, 27 October 2012.
  9. ^ Alfian, 'Cepu delay losses to RI could be up to $150 million', The Jakarta Post, 15 May 2009. See also Amahl S. Azwar, 'Exxon's new boss urged to be more "flexible"', The Jakarta Post, 5 June 2013.
  10. ^ Rangga D. Fadillah, 'Production target "depends on Cepu block"', The Jakarta Post, 18 January 2012.
  11. ^ Amahl S. Azwar, 'Energy: RI to focus on gas potential with new projects this year', The Jakarta Post, 8 January 2013.
  12. ^ Amahl S. Awar, 'Total 'keen' to develop Mahakam with Pertamina', The Jakarta Post, 26 March 2013.
  13. ^ Amahl S. Swar, 'Total to 'stop' Mahakam block development amid uncertainty', The Jakarta Post, 5 October 2013.
  14. ^ Amahl S. Aswan, 'Fujian may pay more of Tangguh gas', The Jakarta Post, 17 May 2013.
  15. ^ See the Aceh Production Operations of ExxonMobil
  16. ^ Amahl S. Azwar, 'Consortium expects govt approval on East Natuna', The Jakarta Post, 26 November 2012.
  17. ^ Data are scarce. According to a 2014 study which made reference to Indonesia, "Shale gas resources [in Indonesia] might be substantial, but have been subjected to scant independent scrutiny." See Michael M.D Ross, 'Diversification of Energy Supply: Prospects for Emerging Snergy Sources', ADB Economics Working Paper Series, No 403, 2014, p. 8.
  18. ^ a b "Technically Recoverable Shale Oil and Shale Gas Resources: An Assessment of 137 Shale Formations in 41 Countries Outside the United States" (PDF). U.S. Energy Information Administration (EIA). June 2013. Retrieved June 11, 2013. 
  19. ^ Charlie Campbell (June 25, 2013). "Indonesia Embraces Shale Fracking — but at What Cost?: Shale fracking has already caused waves in the U.S. and is poised to similarly shake up Southeast Asia's energy landscape". Time. Retrieved June 25, 2013. 
  20. ^ Rohmad Hadiwijoyo (April 21, 2014). "CBM could redraft Indonesia’s energy charts". 
  21. ^ OECD (2013) Factbook 2013: Economic, Environmental and Social Statistics, DOI: 10.1787/factbook-2013-en
  22. ^ REN 21 (2013), Renewables 2013 Global Status Report, p.106
  23. ^ REN 21 (2013), Renewables Global Status Report, p.125.
  24. ^ REN 21 (2013), Renewables Global Status Report, p.109.
  25. ^ Renewables 2007 Global Status Report, REN21 sihteeristö (Pariisi) ja Worldwatch institute (Washington, DC), 2008, page 8
  26. ^ Renewables 2013 Global Status Report
  27. ^ Slamet Susanto, 'RI's geothermal energy still "untouched"', The Jakarta Post, 13 June 2013, and 'Govt set to raise prices of geothermal power', The Jakarta Post, 13 June 2013. See also Hanan Nugroho, 'Geothermal: Challenges to keep the development on track', The Jakarta Post, 23 October 2013.
  28. ^ Ali Hidayat (September 16, 2014). "Indonesia Builds First POME Power Generator". 
  29. ^ Salmet Susanto, 'Alternative energy: Pandanmino, self-sufficient in electricity due to wind power', The Jakarta Post, 5 November 2012.
  30. ^ For a survey of issues involved in expanding capacity in the solar electricity sector in developing Asia, see Michael M.D Ross, 'Diversification of Energy Supply: Prospects for Emerging Energy Sources', ADB Economics Working Paper Series, No 403, 2014.
  31. ^ Observ'ER (2012) Worldwide electricity production from renewable energy sources: Stats and figures series: Fourteenth Inventory - Edition 2012 [1]
  32. ^ REN 21 (2013), Renewables Global Status Report, p.123, Table R17.
  33. ^ World carbon dioxide emissions data by country: China speeds ahead of the rest Guardian 31 January 2011
  34. ^ Forbes list of billionaires (2011) Forbes list of billionaires (2011) Energy Forbes March 10, 2011
  35. ^ Benny Subianto
  36. ^ Forbes Billioners Indonesia 2013
  37. ^ Sukanto Tanoto Forbes 2013
  38. ^ Benny Subianto Forbes 2013
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