Indonesia Renewable Energy Market to Reach 112.99 TWh by 2033 | 8.93% CAGR | Get Free Sample Report

Indonesia Renewable Energy Market Report

According to IMARC Group's report titled "Indonesia Renewable Energy Market Size, Share, Trends and Forecast by Source, and Region, 2025-2033" the report offers a comprehensive analysis of the industry, including market share, growth, trends, and regional insights.

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Indonesia Renewable Energy Market Overview

The Indonesia renewable energy market size reached 52.33 TWh in 2024. The market is projected to grow to 112.99 TWh by 2033, exhibiting a compound annual growth rate (CAGR) of 8.93% during the forecast period from 2025 to 2033. This growth is driven by rising awareness of climate change, government support policies, and abundant natural resources such as solar, wind, and geothermal energy.

Indonesia Renewable Energy Market Key Takeaways

• Current Market Size : 52.33 TWh in 2024
• Forecast Market Size : 112.99 TWh by 2033
• CAGR : 8.93% during 2025-2033

• The market growth is fueled by increasing investments in onshore wind projects.
• Government policies including relaxation of local content requirements support renewable energy development.
• Indonesia aims for a renewable energy mix of 23% by 2025, with an estimated investment requirement of USD 167 Billion.
• Rising energy demand due to population growth and economic expansion is a significant driver.
• The country's rich geothermal reserves and tropical solar irradiance provide abundant renewable resources.

Indonesia Renewable Energy Market Growth Factors

Driven by the global transition to sustainable energy, along with technological development and supportive policy, the renewable energy industry in Indonesia is seeing rapid development. The solar energy market has grown to be one of the major subsectors within the overall industry, with solar energy developments including utility-scale solar farms and rooftop solar projects in urban and rural areas. Wind energy projects are becoming more common, particularly where there are wind power potentials offshore. Biomass energy is another growing sector in renewable energy, where energy is produced using waste material from various agricultural and forestry processes. Basically, in particular, energy storage technologies such as lithium-ion batteries allow large renewable energy systems to become much more reliable.

Energy distribution systems are evolving due to smart grid technology, better distribution and use of renewable energy sources. The country also invests in hydropower and geothermal energy from the abundant potential of renewable energy sources in Indonesia. There are signs of this trend towards decentralized energy, in the form of microgrids, particularly in its use to provide electricity access in remote, or under-served areas, reflecting a global trend, but also an official objective for Indonesia.

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Indonesia Renewable Energy Market Trends

Natural resources, energy demand, and carbon emission reduction efforts mainly cause Indonesia's renewable energy market's potentials and growth prospects. This is especially true in Indonesia where the renewable energy market grows because they need to diversify energy sources for reducing reliance on fossil fuels such as coal and oil. The National Energy Policy and the Renewable Energy Law are government policies that strongly push renewable energy generation. Awareness increases regarding climate change and the economic, social and other benefits of renewable energy acting as key drivers too. This illustrates how domestic and foreign entities invest more in renewable energy projects for driving innovation and scaling renewable energy solutions.

Renewable energy infrastructure and costs get better. This creates more potential in rural and remote areas. Government, the private sector, and researchers cooperate to improve renewable energy technology. Government, the private sector, and researchers set the stage for commercializing renewable energy technology together. These trends indicate that the Indonesia renewable energy market allows stakeholders to contribute toward both the country's sustainable energy goals and its economic development.

Indonesia Renewable Energy Market Segmentation

Source Insights:

• Solar: Harnessing energy using photovoltaic technology, gaining prominence due to high solar irradiance.

• Wind: Increasing investments in onshore wind projects to expand wind energy production.

• Hydro: Utilization of hydroelectric power from water sources contributing to renewable energy mix.

• Bioenergy: Derived from organic materials such as wood and crop waste.

• Others: Includes additional renewable energy sources beyond the main listed categories.

Indonesia Renewable Energy Market Regional Insights

• Java
• Sumatra
• Kalimantan
• Sulawesi
• Others

The Java region is a dominant market contributor benefiting from developed infrastructure. The Indonesia renewable energy market exhibits a CAGR of 8.93% during 2025-2033, supported by rich renewable resources spread across all regions.

Indonesia Renewable Energy Market Key Players

The report offers an in-depth examination of the competitive landscape, including market structure, key player positioning, leading strategies for success, a competitive dashboard, and a company evaluation quadrant.

Indonesia Renewable Energy Market Recent Developments & News

• In November 2023, Indonesia launched an investment plan to mobilize USD 20 Billion in financing pledged by global lenders led by the United States and Japan to accelerate power sector decarbonization.

• Under Indonesia's Just Energy Transition Partnership (JETP), the country aims to cut carbon emissions to 250 million metric tons for its on-grid power sector by 2030.

• In July 2024, PT PLN (Persero) advanced global collaborations to expand renewable energy-based power plants in Indonesia.

• In August 2024, Barito Renewables partnered with ACEN from the Ayala group to accelerate wind energy project development, executed through PT Barito Wind Energy and ACEN Indonesia Investment Holdings Pte. Ltd.

Indonesia Renewable Energy Market Key Highlights of the Report

• Comprehensive quantitative analysis of market segments and trends for 2019-2033.
• Insights into market drivers, challenges, opportunities, and competitive landscape.
• Detailed Porter's five forces analysis assessing competitive environment and market attractiveness.
• Thorough profiles and strategic analysis of key industry players.
• Forecasts segmented by source and region providing actionable market insights.

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