
Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Volume (2025) | 19.48 gigawatt |
Market Volume (2030) | 51.45 gigawatt |
CAGR | 21.44 % |
Market Concentration | High |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Indonesia Renewable Energy Market Analysis
The Indonesia Renewable Energy Market size in terms of installed base is expected to grow from 19.48 gigawatt in 2025 to 51.45 gigawatt by 2030, at a CAGR of 21.44% during the forecast period (2025-2030).
Indonesia's renewable energy industry is undergoing a transformative phase, driven by ambitious government initiatives and substantial resource potential. The country has set an aggressive target of achieving 51.6% renewable energy in Indonesia in its energy mix by 2030, as outlined in the new RUPTL (Rencana Usaha Penyediaan Tenaga Listrik) 2021-2030 launched in September 2021. According to the Institute for Essential Services Reform, Indonesia possesses a remarkable total renewable energy potential in Indonesia of up to 7,879.4 GW, encompassing various sources including solar, micro-hydro, wind, and biomass. This vast potential, combined with declining technology costs and increasing environmental awareness, has positioned Indonesia as a key player in the global renewable energy transition.
The market landscape is witnessing significant technological diversification and large-scale project developments. In July 2021, Singapore-based solar developer Sunseap signed a memorandum of understanding with the Batam Indonesia Free Zone Authority for the construction of a groundbreaking 2.2 GW floating photovoltaic project in the Duriangkang reservoir. This project, scheduled to begin in 2022 and complete by 2024, represents one of the largest floating solar installations globally. Additionally, the World Bank's approval of a USD 380 million loan in September 2021 for the development of the 1,040 MW Upper Cisokan pumped storage hydropower plant demonstrates the increasing international support for Indonesia's green energy ambitions.
The sector is experiencing a notable shift towards innovative technologies and hybrid solutions. UPC Renewables' commencement of construction on a 150-megawatt wind farm in Sukabumi, West Java, valued at IDR 3.3 trillion, exemplifies the growing interest in wind energy development. The market is also seeing increased integration of smart grids and battery energy storage systems (BESS), which are crucial for improving power quality and facilitating variable renewable energy sources like wind and solar PV.
The bioenergy segment is emerging as a significant component of Indonesia's renewable energy portfolio, with the country establishing itself as a global leader in biofuel production. The government has implemented progressive policies, including mandating a minimum 30% biodiesel blend in commercial diesel. This commitment to bioenergy is further demonstrated by the mandate for co-firing biomass in power plants, issued in July 2021, which aims to reduce coal consumption by approximately 9 million metric tons annually through the substitution of up to 10% of coal with biomass pellets in power plants.
Indonesia Renewable Energy Market Trends
Government Policies and Renewable Energy Targets
The Indonesian government has demonstrated a strong commitment to renewable energy development through comprehensive policy frameworks and ambitious targets. The Energy Law of 2007 marked a significant shift in Indonesia's energy strategy, establishing the foundation for transitioning from fossil fuel dependency towards sustainable energy sources, including solar, wind, hydro, geothermal, and biomass. This commitment was further reinforced with the government setting ambitious targets of achieving a 23% renewable energy share in the total electricity generation mix by 2025 and expanding to 31% by 2050, showcasing a clear long-term vision for sustainable energy development.
The government's dedication is evident through recent policy implementations that create favorable conditions for renewable energy adoption. A notable example is the September 2021 net metering legislation for rooftop PV, which increased the net metering factor from 0.65 to 1.00, allowing solar PV system owners to receive full credit for surplus power fed into the grid at the same tariff rate used for purchasing electricity. Additionally, the new RUPTL (Rencana Usaha Penyediaan Tenaga Listrik) 2021-2030, launched in September 2021, set an ambitious target of 51.6% renewable energy in the country's energy mix by 2030, with more than half of the nation's planned 40.6 GW generation capacity targeted from renewables.
Abundant Natural Resources and Renewable Energy Potential
Indonesia's geographical positioning and natural resources present exceptional opportunities for renewable energy potential in Indonesia, with substantial untapped potential across various renewable sources. According to the Ministry of Energy and Mineral Resources, the country possesses immense renewable energy potential in Indonesia, including 207 GW of solar power capacity, 23.9 GW of geothermal energy, and more than 94 GW of hydropower potential. This vast resource base is complemented by significant biomass potential exceeding 32.6 GW and a biogas potential of 200,000 barrels per day, demonstrating the diverse range of renewable resources in Indonesia available for exploitation.
The country's renewable market is further enriched by substantial wind energy potential estimated at 60.6 GW and ocean and tidal energy potential of 17.9 GW. The Institute for Essential Services Reform has identified even more extensive potential scenarios, suggesting total Indonesia renewable resources between 6,811.3 GW and 7,879.4 GW, including solar (6,749.3-7,714.6 GW), micro-hydro (6.3-28.1 GW), wind (19.8-106 GW), and biomass (30.73 GW). This vast potential is particularly significant given Indonesia's position in the Pacific Ring of Fire, which provides it with approximately 40% of the world's geothermal resources, making it uniquely positioned to leverage these natural advantages for sustainable energy in Indonesia.
Energy Security and Reduced Fossil Fuel Dependency
Indonesia's transition towards green energy in Indonesia is largely driven by the pressing need to enhance energy security and reduce dependency on fossil fuels, particularly following its shift from a net oil exporter to a net oil importer in 2005. This strategic pivot towards renewable energy sources represents a fundamental shift in the country's energy policy, moving away from its historical reliance on abundant oil and gas resources. The development of renewable energy infrastructure serves as a crucial mechanism for diversifying the energy mix and establishing a more sustainable and self-sufficient energy system for the nation.
The urgency of this transition is underscored by the depletion of Indonesia's conventional energy resources and the increasing environmental concerns associated with fossil fuel consumption. The government's proactive approach includes initiatives to replace costly diesel-fueled generation with renewable alternatives, particularly in off-grid settings. This strategy not only addresses energy security concerns but also aligns with global environmental commitments. The implementation of biomass co-firing mandates in power plants, as established in July 2021, further demonstrates the government's commitment to reducing fossil fuel consumption, with estimates suggesting that co-firing biomass pellets could reduce coal consumption by 9 million metric tons annually.
Segment Analysis: By Type
Hydro Segment in Indonesia Renewable Energy Market
The hydropower segment dominates Indonesia's renewable energy market, accounting for approximately 51% of the total installed renewable energy share in 2024. This significant market share is attributed to Indonesia's vast hydropower potential, estimated at around 75,000 MW, with major untapped renewable resources concentrated in Sumatra, Java, and Sulawesi. The government's prioritization of hydropower development stems from its ability to provide long-term, consistent, and baseload clean power to reach the country's 23% renewable energy target. The sector has seen substantial development through various large-scale projects, including the significant Kayan Hydro Power Plant with a planned capacity of 9,000 MW. The government's commitment to hydropower is further demonstrated through the National Medium-Term Development Plan 2020-2024, which specifically targets hydropower development in strategic regions like Papua, Sulawesi, and North Kalimantan.

Solar Segment in Indonesia Renewable Energy Market
The solar energy segment is emerging as the fastest-growing sector in Indonesia's renewable energy industry for the period 2024-2029. This growth is driven by the country's substantial solar power potential of approximately 207 GW, according to the Ministry of Energy and Mineral Resources. The segment's rapid expansion is supported by various initiatives, including the recent net metering legislation for rooftop PV that increased the net metering factor to 100%, allowing system owners to receive full credit for surplus power injected into the grid. Major projects like the 2.2 GW floating photovoltaic project in the Duriangkang reservoir and various other utility-scale developments are accelerating this growth. The segment is also benefiting from declining technology costs, increasing private sector participation, and growing adoption in both grid-connected and off-grid applications across residential, commercial, and industrial sectors.
Remaining Segments in Indonesia Renewable Energy Market
The wind, bioenergy, and other alternative energy segments, including geothermal, play crucial complementary roles in Indonesia's clean energy landscape. The wind energy sector, though still nascent, is gaining momentum through projects like the Sukabumi wind farm. The bioenergy segment leverages Indonesia's abundant biomass resources and supports the government's ambitious biofuel blending mandates. The geothermal segment, included in other types, capitalizes on Indonesia's position in the Pacific Ring of Fire, making it a significant contributor to the country's green power mix. These segments collectively contribute to diversifying Indonesia's green energy portfolio and strengthening its energy security while supporting the country's transition toward cleaner sustainable energy for industry sources.
Indonesia Renewable Energy Industry Overview
Top Companies in Indonesia Renewable Energy Market
The Indonesian renewable energy market features prominent players like Canadian Solar Inc., Sindicatum Renewable Energy Company, Trina Solar Co. Ltd, PT Sumber Energi Sukses Makmur, and BCPG Public Company Limited. These renewable energy companies in Indonesia are actively pursuing technological innovation through research and development initiatives, particularly in solar PV technology and energy storage solutions. Strategic collaborations with academic institutions and industry partners have become a common approach to enhance technical capabilities and market reach. Companies are increasingly focusing on developing integrated renewable energy solutions that combine multiple technologies like solar, wind, and energy storage. The market has seen significant investment in expanding manufacturing capabilities and establishing local production facilities to better serve the growing domestic demand. Operational excellence is being achieved through digital transformation initiatives and the adoption of advanced project management practices.
Dynamic Market with Strong Growth Potential
The Indonesian renewable energy market demonstrates a mix of both global and local players, with international companies bringing advanced technologies and local firms contributing deep market understanding and established networks. The market structure shows moderate consolidation, with larger conglomerates expanding their presence through strategic acquisitions and joint ventures with specialized renewable energy companies in Indonesia. Recent years have witnessed increased collaboration between domestic and international players, particularly in large-scale utility projects and technology transfer arrangements. The government's supportive policies and ambitious renewable energy targets have attracted both established energy companies and new entrants to the market.
The market is characterized by significant joint venture activities and strategic partnerships, particularly in the development of utility-scale projects. Major players are actively pursuing vertical integration strategies, expanding across the value chain from component manufacturing to project development and operations. International companies are increasingly partnering with local firms to navigate regulatory requirements and enhance market access. The market has seen several notable acquisitions and partnerships, especially in the solar and wind energy segments, as companies seek to strengthen their market position and technical capabilities.
Innovation and Localization Drive Market Success
Success in the Indonesian renewable energy market increasingly depends on companies' ability to offer customized solutions that address specific local needs while maintaining cost competitiveness. Established players are focusing on developing innovative financing models, improving operational efficiency through digital technologies, and expanding their service offerings beyond equipment supply to include comprehensive energy solutions. The ability to navigate complex regulatory requirements, build strong relationships with local stakeholders, and demonstrate commitment to local content requirements has become crucial for market success. Companies are also investing in developing local talent and establishing robust supply chain networks to ensure sustainable growth.
For new entrants and emerging players, success strategies include focusing on niche market segments, developing strategic partnerships with established players, and leveraging technological innovations to differentiate their offerings. The market presents opportunities for companies that can address specific challenges such as grid integration, energy storage solutions, and distributed generation systems. Building strong relationships with key stakeholders, including government agencies, financial institutions, and local communities, is becoming increasingly important. Companies must also consider potential regulatory changes, particularly around renewable energy targets and local content requirements, while developing their market strategies.
Indonesia Renewable Energy Market Leaders
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Canadian Solar Inc.
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Sindicatum Renewable Energy Company Pte Ltd
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Trina Solar Co. Ltd
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PT Sumber Energi Sukses Makmur
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BCPG Public Company Limited (BCPG)
- *Disclaimer: Major Players sorted in no particular order

Indonesia Renewable Energy Market News
- June 2023: SEG Solar (SEG) and PT Kawasan Industri Terpadu Batang (KITB) have announced they have entered into a binding agreement for the lease of approximately 41 hectares of land located in the Batang Regency, Central Java, Indonesia. Through PT SEG ATW Solar Manufaktur Indonesia, a joint-venture project company, SEG intends to invest USD 500 million in developing the land to construct a 5GW solar cell manufacturing facility and a 3GW solar module manufacturing facility. To assist with developing local facilities in Indonesia, SEG has partnered with PT ATW Investasi Selaras (ATW Group).
- December 2022: PT Bukit Asam Tbk(PTBA), a leading coal mining services provider in the country, collaborated with the Ministry for Maritime Affairs and Investment and Forest and Environmental Management of the ministry to develop a pilot biomass project in South Sumatra. The government expected this project to align with the greenhouse emission reduction targets and mangrove rehabilitation projects.
Indonesia Renewable Energy Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Renewable Energy Mix, 2022
- 4.3 Renewable Energy Installed Capacity and Forecast in GW, till 2028
- 4.4 Recent Trends and Developments
- 4.5 Government Policies and Regulations
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4.6 Market Dynamics
- 4.6.1 Drivers
- 4.6.1.1 Immense Potential in Renewable sector due to Natural Landscape of the country
- 4.6.1.2 Supportive Government Policies and Initiatives
- 4.6.2 Restraints
- 4.6.3 Lack of Investment for Infrastructure Development
- 4.7 Supply Chain Analysis
- 4.8 PESTLE Analysis
5. MARKET SEGMENTATION
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5.1 Source
- 5.1.1 Solar
- 5.1.2 Wind
- 5.1.3 Hydro
- 5.1.4 Bioenergy
- 5.1.5 Other Sources
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers, Acquisitions, Collaborations, and Joint Ventures
- 6.2 Strategies Adopted by Key Players
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6.3 Company Profiles
- 6.3.1 Canadian Solar Inc.
- 6.3.2 Sindicatum Renewable Energy Company Pte Ltd.
- 6.3.3 Trina Solar Ltd
- 6.3.4 PT Sumber Energi Sukses Makmur
- 6.3.5 BCPG Public Company Limited (BCPG)
- 6.3.6 SEG Solar
- 6.3.7 PT. ATW Solar Indonesia
- 6.3.8 Fourth Partner Energy Private Limited
- 6.3.9 Xurya Daya Indonesia
- 6.3.10 TotalEnergies ENEOS
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. The Integration Of Smart Grids And Battery Energy Storage Systems (BESS) with Renewable Energy Projects
Indonesia Renewable Energy Industry Segmentation
Renewable energy is the energy obtained from natural sources that is recharged at a higher rate than it is consumed, creating far lower carbon emissions than burning fossil fuels. India has immense growth potential in renewable energy, which ambitious targets and increasing investments can unlock.
Indonesia's renewable energy market is segmented by source. By source, the market is segmented into wind, solar, hydro, bioenergy, and other sources. For each segment, the market sizing and forecasts have been done based on installed capacity.
Source | Solar |
Wind | |
Hydro | |
Bioenergy | |
Other Sources |
Indonesia Renewable Energy Market Research FAQs
How big is the Indonesia Renewable Energy Market?
The Indonesia Renewable Energy Market size is expected to reach 19.48 gigawatt in 2025 and grow at a CAGR of 21.44% to reach 51.45 gigawatt by 2030.
What is the current Indonesia Renewable Energy Market size?
In 2025, the Indonesia Renewable Energy Market size is expected to reach 19.48 gigawatt.
Who are the key players in Indonesia Renewable Energy Market?
Canadian Solar Inc., Sindicatum Renewable Energy Company Pte Ltd, Trina Solar Co. Ltd, PT Sumber Energi Sukses Makmur and BCPG Public Company Limited (BCPG) are the major companies operating in the Indonesia Renewable Energy Market.
What years does this Indonesia Renewable Energy Market cover, and what was the market size in 2024?
In 2024, the Indonesia Renewable Energy Market size was estimated at 15.30 gigawatt. The report covers the Indonesia Renewable Energy Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Indonesia Renewable Energy Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Indonesia Renewable Energy Market Research
Mordor Intelligence provides a comprehensive analysis of the renewable energy industry in Indonesia. We leverage our extensive expertise in clean energy and sustainable energy market research. Our detailed report examines the rapidly evolving Indonesia renewable energy market. It covers crucial aspects, from the renewable energy potential in Indonesia to the performance of leading energy companies in Indonesia. The analysis spans various sectors, including green energy, offering stakeholders crucial insights into market dynamics and the renewable industry landscape.
The report, available as an easy-to-download PDF, offers stakeholders detailed insights into renewable energy market trends and industry forecast data. It includes projected CAGR figures through 2024. We provide an in-depth analysis of Indonesia's renewable resources and emerging opportunities. Additionally, we examine key renewable energy companies in Indonesia and their strategic initiatives. Our research supports decision-makers with actionable intelligence on green energy market size, technological advancements in clean power generation, and a comprehensive assessment of renewable energy potential across different regions of Indonesia.