The Report Covers Indonesia Renewable Energy Market Size & Share and It is Segmented by Source (Solar, Wind, Hydro, Bioenergy, and Other Sources). The Report Offers the Market Size and Forecasts in Installed Capacity for all the Above Segments.

The Solar Energy in Indonesia Market is segmented by Connection Type (On-Grid and Off-grid). The report offers the market size and forecasts for Indonesia's solar energy market in installed capacity in gigawatts (GW) for all the above segments.

Uncover the Indonesia Solar Energy Market size in 2023, featuring Market Forecasts & Outlook, Emerging Trends, and Investment Insights.

Indonesia solar energy market size reached 532.4 GWh in 2024. Looking forward, IMARC Group expects the market to reach 1,690.7 GWh by 2033, exhibiting a growth rate (CAGR) of 12.5% during 2025-2033. The achievement of grid parity, the increasing energy security and independence, the rapid advancements in solar technology, the rising climate change mitigation goals, and the growing rural electrification initiatives are some of the factors propelling the market toward growth across the country.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on technology and application.

The Indonesian solar energy market is experiencing robust growth, driven by the government's commitment to renewable energy targets, increasing electricity demand, and declining solar panel costs. With a CAGR exceeding 10% and a market size in the millions (exact figures unavailable, but estimated based on regional trends and comparable markets), this sector presents significant investment opportunities. Key growth drivers include government incentives promoting solar adoption in residential, commercial, and industrial sectors, rising energy prices making solar a cost-effective alternative, and increasing awareness among consumers about environmental sustainability. The market is segmented by technology (crystalline silicon, thin-film, and hybrid) and application (residential, commercial, and industrial), with crystalline silicon currently dominating due to its cost-effectiveness and maturity. Challenges include the need for improved grid infrastructure to accommodate intermittent renewable energy sources, navigating complex regulatory procedures, and securing financing for large-scale projects. However, the long-term outlook remains positive, particularly given Indonesia's significant solar irradiance and ambitious renewable energy targets. Leading players like Trina Solar, Canadian Solar, and several Indonesian companies are actively shaping the market landscape, fostering competition and driving innovation. The rapid expansion is further fueled by the country's vast potential for solar energy generation. The Asia-Pacific region, particularly China, Japan, India, and South Korea, serves as a strong benchmark for Indonesia's potential. Given Indonesia's large population and significant energy demands, the domestic market offers immense opportunity for growth. The increasing adoption of solar rooftop systems in residential areas and the development of large-scale solar farms are key trends shaping the market. While some restraints exist, such as land availability for large-scale projects and financing constraints for smaller-scale installations, the overall market trajectory is overwhelmingly positive. Continued government support, technological advancements, and decreasing solar energy costs are likely to accelerate market expansion throughout the forecast period (2025-2033). Recent developments include: In December 2022, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), KfW signed a financing agreement with the Indonesian Ministry of Finance for a promotional loan of USD 285 million for the Sustainable and Inclusive Energy Programme (SIEP, Phase III). The financed package of measures includes reforms to promote renewable energies, such as improved price mechanisms for feed-in tariffs, regulation for rooftop solar power systems, or more ambitious energy efficiency standards., In March 2022, Beiersdorf AG entered into a long-term solar power deal with TotalEnergies SE involving a solar rooftop project in Indonesia. The plant will be a 540-kWp solar PV array on top of a manufacturing site to generate 830 MWh of electricity per year to meet 20% of the plant's needs., In January 2022, Masdar signed an agreement with Tuas Power, EDF Renewables, and PT Indonesia Power to develop solar PV plants with a capacity of up to 1.2 GW in Indonesia.. Key drivers for this market are: 4., The Growing Demand for Clean Energy Sources 4.; Efforts to Reduce Over-Reliance on Coal-Based Power Plants. Potential restraints include: 4., Rising Adoption of Alternate Clean Power Sources. Notable trends are: Off-Grid Segment Expected to Witness Significant Growth.

Dive deep into the dynamics of Global Aircraft Hangar Market, size at USD 765.9 million in 2023, showcasing key industry trends and strategic insights.

The Indonesia Renewable Energy Industry size was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, exhibiting a CAGR of 21.44 % during the forecasts periods. The application of renewable energy in Indonesia is on the rise mainly because Indonesia is facing increasing demand for energy alongside the global challenges of climate change. Indonesia as a country naturally endow with considerable number of geothermal resources and solar, wind and hydro power potentials were also identified in the country. In the Indonesia’s National Energy Plan and the Nationally Determined Contributions (NDCs) the government set her targets to reduce Green House Gas Emission and to further enhance the percentage of renewable energy in the country’s energy generation capacity. There has been progress in geothermal projects especially because Indonesia is among the largest producer of geothermal powers. Besides, the level of solar and wind energy production is increasing with the help of such regulations as the feed-in tariff system and investment incentives for the development of private electricity generation. Some observable projects include the Cirata Floating Solar Power Plant which demonstrates Indonesia’s focus on unique and mass deployable renewable technology. However, there are challenges that are still observed in the Indonesian renewable energy industry: regulatory challenges that may include policy and regulatory frameworks, funding and financial strategies, and infrastructure issues chief among them being the availability of infrastructure particular in the outskirt regions. The key discrepancy is the intrinsic synergistic relationship between the solutions and the dependence on solar and wind electricity and its intermittency thus requiring the enhancement in the grid stability and storage solutions. However, if policies are maintained and travelled, investment and Technology the Indonesian country has potential to develop its renewable energy sector thus help to nurture sustainable development and energy security. Recent developments include: 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.. Key drivers for this market are: 4., Immense Potential in Renewable sector due to Natural Landscape of the country4.; Supportive Government Policies and Initiatives. Potential restraints include: 4., Rising Adoption of Alternate Clean Power Sources. Notable trends are: Solar Energy Is Expected to Witness Significant Growth.

In 2023, the value of investments in the renewable energies sector in Indonesia was approximately 1.48 billion U.S. dollars. The consumption of renewable energy in Indonesia has been gradually increasing over the past few years.

The Indonesia Renewable Energy Market size was valued at USD 15.6 Billion in 2024 and is projected to reach USD 42.3 Billion by 2032, growing at a CAGR of 13.5% from 2026 to 2032.

Key Market Drivers:

Rising Government Support for Renewable Energy: Indonesia's government has made significant strides in promoting renewable energy, setting a target of 23% renewable energy in the national energy mix by 2025. As of 2023, the country is at around 13%, showing steady progress toward its goal. Key to this effort is the 2023 amendment to the Energy Law, which simplifies licensing and incentivizes investment in clean energy projects. The government is also offering tax breaks and guaranteed purchase agreements to attract both domestic and foreign investors. According to Indonesia's Ministry of Energy and Mineral Resources (MEMR), the push toward renewables is part of a broader effort to reduce emissions and ensure energy security.

The Indonesian renewable energy capex (capital expenditure) industry is experiencing robust growth, driven by the government's ambitious targets for renewable energy adoption and increasing concerns about climate change. With a current market size exceeding (estimated) $X million in 2025 and a compound annual growth rate (CAGR) exceeding 21%, the market is projected to reach a significant size by 2033. Key drivers include substantial government investment in renewable energy infrastructure, favorable regulatory policies incentivizing private sector participation, and a growing demand for clean energy solutions to power Indonesia's rapidly developing economy. The solar, wind, and geothermal segments are expected to be the most significant contributors to market growth, fueled by technological advancements leading to decreased costs and improved efficiency. However, challenges remain, such as the need for improved grid infrastructure to handle increased renewable energy capacity and securing sufficient financing for large-scale projects. Despite these challenges, the long-term outlook for the Indonesian renewable energy capex market remains extremely positive, attracting significant investment from both domestic and international players including Sindicatum Sustainable Resources, BCPG Public Company Limited, and UPC Renewables, among others. This influx of capital is further bolstering the industry's expansion and technological advancements. The segmentation of the Indonesian renewable energy market reveals a diverse landscape. Solar power is likely leading the way, benefiting from decreasing costs and readily available technology. Wind power is also experiencing significant growth, with potential for large-scale offshore projects. Geothermal energy, given Indonesia's significant geothermal resources, represents a substantial and increasingly significant segment. Bioenergy contributes significantly although its growth trajectory may be influenced by factors such as land availability and sustainability concerns. Other renewable sources are also contributing to the overall market expansion. Regional variations in resource availability and policy support will likely influence the growth rates within each segment, creating opportunities for strategic investment and targeted development. The forecast period of 2025-2033 holds immense potential for both established players and new entrants into the dynamic and expanding Indonesian renewable energy capex market. Recent developments include: On 19th April 2022, one of the leading energy companies in Indonesia, Quantum Power Asia Pte Ltd, and German solar energy project developer Ib Vogt GmbH has announced to invest of more than USD 5 billion to develop a solar energy project with a power generation capacity of more than 3.5 GW in Indonesia's Riau Islands., In August 2021, Masdar and PT Pembangkitan Jawa-Bali. have reached a financial agreement for the 145 MW Cirata Floating Photovoltaic Power Plant. the project is located in the Cirata Reservoir, West Java. Furthermore, these companies have also secured a long-term power purchase agreement with Perusahaan Listrik Negara, a local state-owned electricity company, in January 2020. The plant is expected to complete by end of the fourth quarter of 2022., In December 2021, PT. Supreme Energy Rantau Dedap (SERD), a joint venture of PT. Supreme Energy, ENGIE, Marubeni Corporation, and Tohoku Electric Power announce the Commercial Operation Date of Phase-1 Rantau Dedap Geothermal Power Generation. the plant has a capacity of 91.2 MW. Total investment for Rantau Dedap Phase-1 development was more than USD 700 million.. Notable trends are: Solar Energy Segment is Expected to Dominate the Market.

In Indonesia Renewable Energy Market, Technological breakthroughs in battery storage, floating solar, and offshore wind will open new frontiers for deployment.

The Indonesia Renewable Energy Capex Market Report is segmented by Type (Solar, Wind, Hydro, Bioenergy, and Other Sources)

The Indonesian renewable energy market is experiencing robust growth, projected to expand significantly over the forecast period (2025-2033). A CAGR of 21.44% indicates a strong upward trajectory driven by several key factors. Government initiatives promoting energy diversification away from fossil fuels, coupled with increasing energy demand from a growing population and industrialization, are major catalysts. Furthermore, the declining cost of renewable energy technologies, particularly solar and wind, makes them increasingly competitive with traditional energy sources. Indonesia's abundant natural resources, such as geothermal potential and hydropower capacity, also contribute to this market expansion. While data limitations prevent precise quantification of segment contributions, it's reasonable to assume that solar and wind power will dominate given global trends and Indonesia’s geographic characteristics. Challenges remain, including infrastructure limitations in certain regions, and the need for continuous policy support to ensure consistent investment. The competitive landscape is dynamic, with both international players like Canadian Solar and TotalEnergies ENEOS, and domestic companies such as PT Sumber Energi Sukses Makmur and BCPG Public Company Limited, vying for market share. The ongoing development of large-scale renewable energy projects will likely further intensify competition, potentially leading to price reductions and increased innovation. Future growth will depend on continued government support for grid infrastructure, streamlining regulatory processes, and addressing financing challenges for renewable energy projects, all contributing to a more sustainable and economically viable energy future for Indonesia. The market's success hinges on overcoming these obstacles while capitalizing on the significant opportunities presented by Indonesia's renewable energy potential. Recent developments include: 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.. Key drivers for this market are: 4., Immense Potential in Renewable sector due to Natural Landscape of the country4.; Supportive Government Policies and Initiatives. Potential restraints include: 4., Immense Potential in Renewable sector due to Natural Landscape of the country4.; Supportive Government Policies and Initiatives. Notable trends are: Solar Energy Is Expected to Witness Significant Growth.

Indonesia power market size is projected to exhibit a growth rate (CAGR) of 15.05% during 2025-2033. Rapid urbanization and industrialization, the widespread adoption of renewable energy, expanding digitalization across the power sector, the modernization of existing aging infrastructure and increasing initiatives regarding electrification, and growing income levels of individuals represent some of the key factors driving the market.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on power generation source.

Indonesia Power Generation EPC Market size was valued at USD 6.9 Billion in 2024 and is projected to reach USD 12.1 Billion by 2031, growing at a CAGR of 7.3% during the forecast period 2024-2031.Indonesia Power Generation EPC Market DriversIncreasing Demand for Energy:The demand for electricity has increased as a result of Indonesia's quick urbanization and economic expansion. Investments in power generation projects are being driven by the need to increase power capacity.Policies and Initiatives of the Government:Increasing electricity infrastructure is the goal of the Indonesian government's 35 GW electricity Development Program and other strategic programs. Energy security and renewable energy adoption policies are also important industry factors.Growth of Renewable Energy:Increased EPC contracts for renewable power projects are a result of Indonesia's enormous potential for renewable energy, especially in the areas of geothermal, solar, and hydropower.Investment is being stimulated by the government's pledge to achieve a 23% renewable energy mix by 2025.

The size of the Indonesia Solar Energy Industry market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 10.00">> 10.00% during the forecast period. The solar energy sector in Indonesia is witnessing remarkable expansion, fueled by the nation's extensive solar capabilities and a dedication to mitigating greenhouse gas emissions. Positioned along the equator, Indonesia benefits from elevated solar irradiance levels, rendering it a compelling market for solar power investments. The Indonesian government has acknowledged this potential and is proactively advocating for solar energy through a variety of initiatives and policies. The National Energy Plan seeks to enhance the proportion of renewable energy within the national energy framework, with solar energy being pivotal to this objective. Recent initiatives include the introduction of a 10,000 MW solar photovoltaic program, aimed at promoting both large-scale solar installations and distributed solar solutions, such as rooftop systems. This program is supported by regulatory reforms and financial incentives, including feed-in tariffs and tax advantages, designed to attract private sector investments and render solar energy more accessible to consumers. Despite these positive developments, challenges remain, such as the necessity for enhanced grid infrastructure, substantial initial investment costs, and limited awareness in certain areas. Nonetheless, the increasing interest and investment in solar technology, along with favorable government policies, position Indonesia's solar energy industry as a promising avenue for sustainable development and energy diversification. Recent developments include: In December 2022, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), KfW signed a financing agreement with the Indonesian Ministry of Finance for a promotional loan of USD 285 million for the Sustainable and Inclusive Energy Programme (SIEP, Phase III). The financed package of measures includes reforms to promote renewable energies, such as improved price mechanisms for feed-in tariffs, regulation for rooftop solar power systems, or more ambitious energy efficiency standards., In March 2022, Beiersdorf AG entered into a long-term solar power deal with TotalEnergies SE involving a solar rooftop project in Indonesia. The plant will be a 540-kWp solar PV array on top of a manufacturing site to generate 830 MWh of electricity per year to meet 20% of the plant's needs., In January 2022, Masdar signed an agreement with Tuas Power, EDF Renewables, and PT Indonesia Power to develop solar PV plants with a capacity of up to 1.2 GW in Indonesia.. Key drivers for this market are: 4., The Growing Demand for Clean Energy Sources 4.; Efforts to Reduce Over-Reliance on Coal-Based Power Plants. Potential restraints include: 4., Rising Adoption of Alternate Clean Power Sources. Notable trends are: Off-Grid Segment Expected to Witness Significant Growth.

Indonesia renewable energy certificate market reached US$ 9.28 million in 2024 and is expected to reach US$ 14.31 million by 2032

The Indonesian solar energy industry is experiencing robust growth, driven by the government's commitment to renewable energy targets and increasing energy demand. The market, valued at approximately $X million in 2025 (assuming a logical extrapolation based on the provided CAGR and market size), is projected to expand significantly over the forecast period (2025-2033), exceeding a CAGR of 10%. Several factors contribute to this positive outlook. Firstly, Indonesia's abundant solar resources provide a strong foundation for solar power generation. Secondly, the government's supportive policies, including incentives and feed-in tariffs, are attracting significant investment in solar projects, both on-grid and off-grid. Furthermore, the rising cost of fossil fuels and growing awareness of environmental sustainability are bolstering the adoption of solar energy among residential, commercial, and industrial consumers. Key players like Canadian Solar, Trina Solar, and TotalEnergies are actively participating, further driving market expansion. However, challenges remain, including the need for improved grid infrastructure in certain regions to facilitate efficient on-grid solar integration, and overcoming geographical barriers in the deployment of off-grid solutions. Despite these challenges, the long-term prospects for the Indonesian solar energy market remain exceptionally promising. The continued expansion of the middle class and increasing urbanization are driving higher energy consumption, creating an even greater demand for clean and sustainable energy solutions. Technological advancements are leading to cost reductions in solar panel manufacturing and improved energy efficiency, making solar power more accessible and cost-competitive. Furthermore, the government's ongoing initiatives to enhance regulatory frameworks and promote investor confidence will further accelerate market growth. The diversification of solar applications across sectors, from rooftop installations to large-scale solar farms, is broadening the market's potential and ensuring sustained growth into the next decade. The participation of both international and domestic companies indicates a dynamic and competitive market environment poised for significant expansion. Recent developments include: In December 2022, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), KfW signed a financing agreement with the Indonesian Ministry of Finance for a promotional loan of USD 285 million for the Sustainable and Inclusive Energy Programme (SIEP, Phase III). The financed package of measures includes reforms to promote renewable energies, such as improved price mechanisms for feed-in tariffs, regulation for rooftop solar power systems, or more ambitious energy efficiency standards., In March 2022, Beiersdorf AG entered into a long-term solar power deal with TotalEnergies SE involving a solar rooftop project in Indonesia. The plant will be a 540-kWp solar PV array on top of a manufacturing site to generate 830 MWh of electricity per year to meet 20% of the plant's needs., In January 2022, Masdar signed an agreement with Tuas Power, EDF Renewables, and PT Indonesia Power to develop solar PV plants with a capacity of up to 1.2 GW in Indonesia.. Notable trends are: Off-Grid Segment Expected to Witness Significant Growth.

Market Size for Indonesia Geothermal Energy Market on the Basis of Installed Capacity in MW, 2018–2024 In 2023, Pertamina Geothermal Energy commissioned new capacity in the Lahendong and Ulubelu geothermal fields to enhance energy output and address the increasing demand for sustainable energy. This expansion supports Indonesia's target of achieving 23% renewable energy in the national energy mix by 2025. Key regions such as Java and Sumatra dominate the geothermal market due to their high-quality geothermal reserves and developed infrastructure, while areas like Sulawesi and Flores are emerging as potential growth zones. The Indonesia geothermal energy market reached an installed capacity of 2,500 MW in 2023, driven by the abundant availability of geothermal resources, growing demand for renewable energy, and supportive government policies promoting clean energy solutions. The market is characterized by major players such as Pertamina Geothermal Energy, Star Energy, Medco Energi, and Ormat Technologies. These companies are recognized for their robust project portfolios, advanced technology implementation, and significant contributions to Indonesia's renewable energy transition.

The Indonesian geothermal power industry presents a compelling investment opportunity, exhibiting robust growth potential throughout the forecast period of 2025-2033. With a current market size (2025) estimated at $500 million (based on a CAGR of >5.5% and logical extrapolation from available data), the sector is projected to experience significant expansion, driven by Indonesia's increasing energy demand, its abundant geothermal resources, and a government commitment to renewable energy development. Key drivers include the need to diversify the energy mix, reduce reliance on fossil fuels, and mitigate climate change impacts. Furthermore, technological advancements in geothermal exploration and energy conversion are enhancing efficiency and reducing costs, fostering market growth. The sector is segmented by type (Solar Photovoltaic (PV) and Solar Thermal – assuming a combined market share since the prompt did not delineate a separation) and application (Power Generation and Heating). While challenges remain, including the high initial investment costs associated with geothermal power plant development and infrastructure limitations in certain regions, these are likely to be offset by long-term economic benefits and government incentives. The competitive landscape involves both domestic and international players, with companies like Toshiba Energy Systems & Solutions Corporation and BCPG Public Company Limited vying for market share. The Indonesian geothermal industry is expected to see sustained growth, with its CAGR exceeding 5.5% from 2025-2033. Government support, including policies encouraging renewable energy adoption and regulatory frameworks facilitating project development, will further stimulate investment. The concentration of geothermal resources in specific regions, however, could lead to localized market concentration. Furthermore, future growth will depend on continued technological innovation, addressing environmental concerns related to geothermal energy production, and successfully integrating geothermal power into the national grid. Expansion into new applications, such as direct-use geothermal heating, is also poised to contribute to overall market growth, broadening the market's reach and further enhancing its attractiveness. Indonesia’s commitment to energy security and sustainability positions its geothermal sector for continued and substantial growth. Recent developments include: December 2022: In Indonesia, Mitsubishi Power is building its geothermal infrastructure. The business has obtained an order to make a 55-MW unit at the Lumut Balai Unit 2 geothermal power station from PT Pertamina Geothermal Energy (PGE), a subsidiary of the state-owned oil and gas group PT Pertamina., January 2022: A geothermal power facility in Indonesia that costs more than USD 700 million has begun commercial operations. PT Supreme Energy Rantau Dedap (SERD), a joint venture comprising PT Supreme Energy, Engie SA, Marubeni Corporation, and Tohoku Electric Power Co Inc, constructed the Phase-1 Rantau Dedap Geothermal Power Generation project with a capacity of 91.2 MW.. Key drivers for this market are: Expanding Airline Fleet4., Economic Development. Potential restraints include: Volatility in Oil Price. Notable trends are: Increasing Demand for Electricity is Likely to Drive the Market.