A study by the Institute for Essential Services Reform (IESR) has identified 333 GW of financially viable renewable energy projects across Indonesia, out of a total technical potential of 548.5 GW. These projects include 165.9 GW of ground-mounted solar power, 167 GW of onshore wind power, and 0.7 GW of thermal power. The study highlights six key regions—Papua, Kalimantan, Maluku, South Sulawesi, West Sumatra, and North Sumatra—as the most promising for development, based on economic feasibility and equity internal rate of return (EIRR) levels. Around 61 per cent of the identified capacity, equivalent to 206 GW, has EIRR rates exceeding 10 per cent, making them attractive for investors.
Indonesia aims to increase its renewable energy share beyond 23 per cent, with a potential target of 50% by 2030. The report stresses the need for technological advancements, a modernised electricity grid, clear regulations, and streamlined licensing to attract investment. Additionally, Indonesia is in discussions with the US and Russia for nuclear power technology to further reduce reliance on fossil fuels by 2036.