11 July 2025 (closed)
Jakarta Composite Index (7,047.44) +42.07 +0.60%
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Below is a list with tagged columns and company profiles.
Latest Reports Energy
On Thursday 03 July 2025 Indonesia Investments released its June 2025 report, titled 'Indonesia’s Energy-Poverty Nexus – Energy Disruptions Perpetuate Poverty'. The report discusses a selection of economic, political and social subjects that were relevant in the month of June 2025.
An important document was released by Indonesia’s state-owned electricity firm Perusahaan Listrik Negara (PLN) at the end of May 2025. This document is titled the Electricity Supply Business Plan (in Indonesian: Rencana Usaha Penyediaan Tenaga Listrik, RUPTL) and covers the 2025-2034 period.
Indonesia has impressive potential for geothermal power. However, the country struggles to tap the potential of this renewable energy source. Not only does it prove difficult to encourage investment in exploration and exploitation, but sometimes there also exists resistance from the local population.
In December 2024, Indonesia’s Ministry of Energy and Mineral Resources released a statement in which it said that renewable energy accounts for 13.93 percent of the national energy mix. Meanwhile, the ministry hopes this percentage can touch 14.1 percent by the end of 2024 especially supported by geothermal power development.
On 30 May 2024 a new government regulation took effect that might have an impact on the coal mining industry of Indonesia. This regulation is Government Regulation No. 25 of Year 2024 on the Amendment of Government Regulation No. 96 of 2021 on the Implementation of Mineral and Coal Mining Business Activities (henceforth: Regulation 25/2024).
The stock market experienced turbulent times in May 2024. Indonesia’s benchmark stock index (Jakarta Composite Index, or, IHSG) in particular showed some volatile behavior, with daily increases and declines of more than one percent taking turns. However, the overall trend was negative in May 2024, as the IHSG shed 3.6 percent from a level of 7,234.20 points at the end of April 2024 to 6,970.74 points at the end of May 2024.
Geothermal energy is a (relatively) environmentally friendly power source that is derived from Earth's inner heat (the Earth’s core is estimated to carry temperatures around 5,500 degrees centigrade, which in fact equals the temperatures found at the surface of the Sun).
While hydropower is never much featured (or discussed) in Indonesian media, it is actually the biggest source of renewable energy for Indonesians. Based on data from Indonesia’s Energy and Mineral Resources Ministry, the nation’s hydropower-fueled power plants had a total installed capacity of 6,688.9 megawatt (MW) at the end of 2022.
The Energy and Mineral Resources Ministry of Indonesia announced in January that the B35 biodiesel program is scheduled to be imposed on 1 February 2023 (implying a one-month delay as the B35 program was supposed to take off on 1 January 2023).
Indonesia ended 2022 with a modest increase in inflationary pressures. Indonesia’s Statistical Agency (or BPS) announced that December 2022 inflation reached 0.66 percent month-on-month (m/m), higher than our forecast of around 0.50 percent.
Latest Columns Energy
In 2018 Indonesia is expected to become the world's second-biggest geothermal energy producer, surpassing the Philippines that now lies second after the United States. Meanwhile, Indonesia's Energy and Mineral Resources Ministry projects Indonesia to become the world's largest geothermal power producer by 2021. These developments are based on ongoing geothermal development in Southeast Asia's largest economy.
The central bank of Indonesia (Bank Indonesia) said it carefully monitors the impact of higher electricity tariffs on the nation's inflation pace in March 2017. This month the government implemented the second phase of its gradual electricity tariff increase program for 900-VA household customers. Indonesia's state-owned electricity company Perusahaan Listrik Negara (PLN) decided to raise the electricity price for 900-VA households three times this year in order to cut energy subsidies and ensure that these subsidies are indeed channeled to the right people.
Domestic coal consumption in Indonesia rose 34.5 percent (y/y) to 24.5 million tons in the January-April 2016 period, according to data from Indonesia's Energy and Mineral Resources Ministry. This growth is caused by higher domestic coal demand due to Indonesia's ambitious 35,000 MW program (many of the power plants constructed in this program are coal-fired). Meanwhile, Indonesia's coal exports were down 14 percent (y/y) to 68 million metric tons over the same period amid sluggish global demand.
Last week it was announced that the Japan Bank for International Cooperation (JBIC) agreed to a USD $3.4 billion loan for the construction of the controversial Batang power plant in Central Java. This power plant project is controversial as it met fierce resistance from the local community (triggering concerns about human rights violations related to the land acquisition process) as well as criticism from environmental groups, saying this power plant - set to become Indonesia's largest coal-fired power plant - runs counter to Indonesia's earlier commitment to reduce carbon emissions.
Until 19 March, a Belgian mission - led by Princess Astrid, accompanied by four ministers and 301 participants (including 127 company representatives) - visits Indonesia in an effort to strengthen bilateral economic cooperation between both nations and boost foreign direct investment from Belgium into Indonesia. According to the Belgian Embassy, the ongoing mission in Indonesia is the fifth - and largest ever - economic mission conducted by Belgium in Southeast Asia's largest economy. Belgium is the fifth-largest investor from the European Union (EU).
West Kalimantan, South Sulawesi and South Kalimantan are the three Indonesian provinces that scored the worst in the Local Government Performance Index (in Indonesian: Indeks Kinerja Pemerintah Daerah, or IKPD). This index, compiled by Indonesia's Corruption Eradication Commission (KPK), measures the degree of coordination and supervision within Indonesian provinces regarding policies and actions related to the prevention of corruption in the mining and energy sectors. The provinces that have the highest scores are Central Sulawesi and the Riau Islands.
Indonesian President Joko Widodo (often called Jokowi) emphasized that the government of Indonesia needs to boost development of renewable energy. Although Indonesia contains huge potential for renewable energy (particularly geothermal energy), the share of renewable energy in Indonesia’s total energy use currently stands at around 5 percent only, the remainder being fossil energy. By providing incentives, attractive tariffs and an easier licensing and registration process, the government can generate more investment in this sector.
The Indonesian government plans to tender 25 new geothermal development sites with a total combined capacity of 1,225 megawatt (MW). These 25 projects will require a total of USD $4.6 billion worth of investments and help to achieve the government’s target to raise the portion of geothermal energy in the country’s energy mix to 7.1 percent by 2025. These 25 projects are in addition to the 31 geothermal development projects that are currently being constructed and which should be operational by 2020.
Growth of the manufacturing industry in Indonesia is expected to be significantly weaker in 2015 than initially forecast. Indonesia’s Industry Ministry cut its 2015 forecast for expansion of the country’s manufacturing industry to 6.1 percent (year-on-year) from the previous estimate of 6.8 percent. In tandem with slowing economic growth in Southeast Asia’s largest economy, manufacturing growth has slowed to 4.99 percent (y/y) in Q3-2014. Moreover, the HSBC/Markit PMI contracted to a record low of 48.0 in November 2014.
Indonesia is facing the risk of becoming a net importer of energy by 2019 as the nation’s energy demand will reach 6.19 million barrels of oil equivalent per day (boepd) whereas the domestic energy supply will only reach 6.04 million boepd by that year. Provided that the economy of Indonesia remains expanding at a pace of +5 percent (year-on-year) while investments in energy exploration do not rise accordingly, Southeast Asia’s largest economy will become dependent on foreign energy supplies.
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