Investor Presentaiton
Climate Sustainability
Climate sustainability and socio-economic development
must both be considered for Indonesian energy
Indonesia's growing population is accompanied by rising.
demand for utilities
Total population
in 2021
276.4m
Indonesia's utilisation of renewable energy resources is considerably lower than
estimated potential*, 2019
Estimated potential (GW)
Utilisation rate (%)
Additional
forecast
population by
2030
22.8m
250
10
Global rank by
population,
200
8
2021-30
#4
150
CO
6
National electricity demand had been forecast to triple over
2010-30, driven by robust economic growth, urbanisation and
industrialisation as well as population expansion
88.3%
91.2%
95.4%
Indonesia is expanding electrification and filling relative
disparities in the archipelago
2015
2016
2017
2018
2019
2020
0
20
40
60
80
100
98.3%
98.9%
99.2%
100
50
0
Solar
Hydro
Wind
Bioenergy
Geothermal
Ocean
*OECD calculations based on statistics from the Ministry of Energy and Natural Resources (MEMR) and Perusahaan Listrik Negara (PLN),
the state-owned power producer and operator
•
•
•
•
Non-renewable sources may be needed to support socio-economic development
Low renewables usage in Indonesia has been attributed in part to the dominance of coal in the
country
Many emerging markets are at an energy-intensive stage of development, with access to
a ordable electricity fundamental for inclusive growth; growing energy demands need to be met
with non-renewable sources such as thermal coal, oil and gas
The green premium attached to renewable solutions underscores the importance of
balancing socio-economic and environmental considerations in the local context
4
Indonesia's Electricity Power Supply Business Plan (RUPTL) 2021-30 aims to
increase the proportion of renewables to at least 50%, up from 30% in RUPTL
2019-28
4
2
0
Sustainable electrification
Indonesia's large population is
forecast to grow by 22.8m between
2021 and 2030, which will translate
into increased demand for electricity.
Efforts to widen electrification in
Sulawesi, East and West Nusa
Tenggara, East Kalimantan,
West Sumatra and Yogyakarta,
as well as ongoing
industrialisation and GDP
growth, will also raise demand. It
seems unlikely that renewables
alone, particularly given
underinvestment in the segment,
will be sufficient to meet these
demands across the
archipelago. Non-renewables
will therefore remain important
for Indonesia's socio-economic
development. Within this context, net-
zero action from private and public
organisations will be key to expanding
renewables and minimising emissions.
PwC
OBG ESG Report
OXFORD
BUSINESS
GROUP
Sources: MEMR; Mongabay; OECD; PLN; Statista; World Bank
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