Indonesia’s renewable power capacity is forecast to rise to 38.1 GW by 2035, up from 8.4 GW in 2024. The expansion implies a 14.7 per cent compound annual growth rate, driven by policy support and large-scale project development, even as thermal power remains dominant.
Solar PV is expected to lead growth, increasing from 0.9 GW to 23.2 GW, supported by floating solar, utility-scale projects and rooftop programmes. Onshore wind capacity is projected to rise from 0.15 GW to 2.6 GW, while geothermal capacity is set to expand from 2.6 GW to 5.5 GW, leveraging Indonesia’s strong resource base and targeted financing mechanisms.
Despite rapid renewable growth, coal- and gas-fired generation will continue to underpin supply. Coal capacity is projected to grow from 55.6 GW to 61.4 GW, and gas from 29.1 GW to 36 GW by 2035, reflecting the need for baseload stability across Indonesia’s island grids. The outlook points to a dual-track strategy, with accelerating renewables alongside continued thermal capacity to maintain system reliability.
