Overview
Indonesia — key energy statistics
~500 MT/yr
Coal exports — world's largest
270 M
Population — 17,000-island archipelago
~2.4 GW
Geothermal — world's 3rd largest installed
$20 B
JETP pledge at G20 Bali 2022
~99.5%
Electrification rate (PLN 2023)
95 M
Still using biomass cooking (WHO)
Coal export industry · GPS-located
Indonesia's coal — the world's largest thermal coal exporter
Indonesia produces approximately 700 million tonnes of coal per year and exports approximately 500 million tonnes — more thermal coal than any other country. This coal powers India's factories, South Korea's steel mills, and China's grid. It also powers Indonesia's own electricity system, which is approximately 62% coal-dependent.
Kalimantan coal — the world's thermal coal engine:
East and South Kalimantan (0.00°N 117.00°E, Indonesian Borneo) contains Indonesia's largest coal deposits. The coal is sub-bituminous to bituminous, with ash content 5–15% (much lower than Indian coal's 35–45%) and calorific values of 4,000–6,500 kcal/kg. These qualities make Indonesian coal highly competitive globally — it blends well with higher-ash domestic coal in Indian and Chinese power stations. Major companies: PT Adaro Energy (Tutupan mine, 2.16°S 115.16°E, ~80 MT/yr from South Kalimantan), PT Bayan Resources, PT Berau Coal, PT Kideco (Batu Kajang mine, 1.86°S 116.37°E). Coal is barged down Mahakam and Barito rivers to coastal loading points. Major export ports: Balikpapan (1.27°S 116.83°E), Banjarmasin (3.32°S 114.59°E). Indonesia exported approximately 120 MT to India (2022–23) — India's largest single coal import source. Post-2022, Indonesia also filled some supply gaps as Australian coal was diverted from China after diplomatic tensions. Source: APBI Indonesia Coal Mining Association · Indonesia ESDM 2024.
East and South Kalimantan (0.00°N 117.00°E, Indonesian Borneo) contains Indonesia's largest coal deposits. The coal is sub-bituminous to bituminous, with ash content 5–15% (much lower than Indian coal's 35–45%) and calorific values of 4,000–6,500 kcal/kg. These qualities make Indonesian coal highly competitive globally — it blends well with higher-ash domestic coal in Indian and Chinese power stations. Major companies: PT Adaro Energy (Tutupan mine, 2.16°S 115.16°E, ~80 MT/yr from South Kalimantan), PT Bayan Resources, PT Berau Coal, PT Kideco (Batu Kajang mine, 1.86°S 116.37°E). Coal is barged down Mahakam and Barito rivers to coastal loading points. Major export ports: Balikpapan (1.27°S 116.83°E), Banjarmasin (3.32°S 114.59°E). Indonesia exported approximately 120 MT to India (2022–23) — India's largest single coal import source. Post-2022, Indonesia also filled some supply gaps as Australian coal was diverted from China after diplomatic tensions. Source: APBI Indonesia Coal Mining Association · Indonesia ESDM 2024.
LNG infrastructure — ageing but strategically important:
Bontang LNG (0.13°N 117.47°E, East Kalimantan) was one of the world's first large LNG complexes — operational since 1977. At peak it exported approximately 22 MTPA, making Indonesia one of the world's largest LNG exporters. Now declining as the underlying Mahakam gas fields deplete — capacity utilisation has fallen significantly. Tangguh LNG (2.74°S 133.71°E, Papua Barat) is BP's major LNG project — 7.6 MTPA feeding Japan, China, and Korea. Train 3 (3.8 MTPA) completed in 2023. Indonesia was a net LNG exporter for decades but is now approaching balance or net importer status for domestic gas consumption as its aging fields decline while demand grows. Source: Badak NGL · BP Tangguh Annual Report 2023.
Bontang LNG (0.13°N 117.47°E, East Kalimantan) was one of the world's first large LNG complexes — operational since 1977. At peak it exported approximately 22 MTPA, making Indonesia one of the world's largest LNG exporters. Now declining as the underlying Mahakam gas fields deplete — capacity utilisation has fallen significantly. Tangguh LNG (2.74°S 133.71°E, Papua Barat) is BP's major LNG project — 7.6 MTPA feeding Japan, China, and Korea. Train 3 (3.8 MTPA) completed in 2023. Indonesia was a net LNG exporter for decades but is now approaching balance or net importer status for domestic gas consumption as its aging fields decline while demand grows. Source: Badak NGL · BP Tangguh Annual Report 2023.
Geothermal energy · GPS-located
World's largest geothermal potential — and why only 8% is developed
Indonesia sits on the Pacific Ring of Fire with approximately 127 active volcanoes and estimated 29 GW of geothermal potential — the world's largest. Yet only approximately 2.4 GW is installed (approximately 8% of potential). All major fields are in Java and Sumatra: Kamojang (7.12°S 107.80°E, 235 MW, West Java — Indonesia's first geothermal plant, operational 1983, Pertamina Geothermal Energy), Darajat (7.18°S 107.75°E, 259 MW, West Java, Chevron/Star Energy), Salak (6.72°S 106.77°E, 377 MW, West Java, Star Energy/Chevron — largest single site), Wayang Windu (7.20°S 107.65°E, 227 MW, West Java), Lahendong (1.36°N 124.81°E, 120 MW, North Sulawesi). Why only 8% developed: (1) Remote locations — most geothermal resources are in forests and protected areas far from demand centres; long transmission lines add significant cost. (2) Exploration risk — drilling is expensive and not all wells are productive; Indonesia has struggled to attract private financing for exploration risk. (3) Tariff policy — PLN (state utility) has historically not offered geothermal power purchasing prices high enough for private developers. (4) Regulatory complexity — geothermal resources are classified as mining resources, creating legal overlap between energy and forest regulations. Indonesia's government has repeatedly stated ambitions for massive geothermal expansion — 7 GW by 2025, 17 GW by 2060 — but actual installation pace has been far below targets. Source: ESDM Indonesia · Pertamina Geothermal Energy Annual Report 2023.
Just Energy Transition Partnership
Indonesia's $20 billion JETP — and the coal phase-out dilemma
At the G20 summit in Bali (8.43°S 115.19°E) in November 2022, Indonesia's JETP was announced — $20 billion in public and private finance from the International Partners Group (IPG, led by USA, Japan, EU, UK, Canada, Denmark, France, Germany, Norway) to support Indonesia's energy transition. The JETP commitments included: peak power sector emissions by 2030, achieve net-zero in the power sector by 2050 (10 years ahead of Indonesia's national target), and achieve 34% renewable electricity by 2030. The $20 billion includes a mix of grants (small), concessional loans, market-rate loans, and private investment guarantees. Implementation challenges: (1) Indonesia's coal industry employs approximately 1.5 million workers directly — a "just transition" must address their livelihoods; (2) Most $20 billion is loans, not grants — Indonesia must service this debt; (3) PLN (state utility) has significant outstanding debt from existing coal plants; early retirement creates "stranded asset" losses. As of 2024, Indonesia's JETP Comprehensive Investment and Policy Plan (CIPP) has been developed but actual financing flows have been slower than pledged. Indonesia's experience mirrors South Africa's JETP challenges — headline numbers are impressive but delivery is complex. Source: JETP Indonesia CIPP 2023 · IEA Indonesia Energy Outlook · Indonesia ESDM.
Questions
Questions about Indonesia's energy
Can Indonesia afford to phase out coal when it is the world's largest exporter?
Indonesia's coal phase-out dilemma is uniquely acute because coal serves two purposes simultaneously: domestic energy security and export revenue. Export dependence: Coal exports generated approximately $35–40 billion in revenue in 2022–23 (ESDM), a significant portion of Indonesia's foreign exchange. Phasing out coal exports (not just domestic use) would require replacing this revenue. Domestic dependence: Coal powers approximately 62% of Indonesia's grid — replacement requires approximately 50–60 GW of new renewable capacity plus transmission infrastructure on a widely dispersed archipelago. The JETP offer: The $20 billion JETP is supposed to help bridge this gap — but most of it is loans, not grants, adding to Indonesia's debt burden. Indonesia has consistently argued in international negotiations that it needs financial support and technology transfer before it can accelerate coal phase-out. The government's domestic position is that coal phase-out of power generation can happen by 2040–2050, but coal exports may continue longer as long as there are buyers. India and China are still buying Indonesian coal. The IEA's NZE 2050 scenario requires no new coal mines globally from 2021 — Indonesia has continued permitting new mines. The tension between Indonesia's JETP commitments and its coal permitting decisions reflects a genuine policy conflict that has not been resolved. Source: JETP Indonesia CIPP 2023 · IEA Indonesia 2022 · Global Energy Monitor Indonesia Coal Tracker.
Provenance
Attribution and citation
- Sources
- ESDM Indonesia Annual Report 2024 · PLN Annual Report 2023 · IEA Indonesia Energy Policy 2022 · APBI Indonesia Coal Mining Association · BP Tangguh Annual Report 2023 · Pertamina Geothermal Energy AR 2023
- Cite as
- "Indonesia Energy Profile", The Energy Codex, https://thecodex.expert/energy/countries/indonesia/, last updated .