Indonesia Renewable Energy Market (2025-2031) | Size, Trends, Share, Industry, Growth, Revenue, Analysis, Companies, Value & Forecast

Topics Covered in the Indonesia Renewable Energy Market Report

The Indonesia Renewable Energy Market report delivers a detailed segmentation based on Technology and End-User. It presents an impartial analysis of current trends, high-growth areas, and significant market drivers, equipping stakeholders with insights to devise strategies that align with both current conditions and future market opportunities.

Indonesia Renewable Energy Market Synopsis

Indonesia’s renewable energy market is gaining momentum, bolstered by government mandates to reduce fossil fuel dependency and achieve 23% renewable energy in its energy mix by 2025. Favorable policy frameworks, international partnerships, and the declining cost of renewable technologies are key market drivers. Additionally, Indonesia’s vast solar and geothermal potential makes it an attractive destination for clean energy investments.

According to 6Wresearch, the market is projected to grow at a CAGR of 9.0% from 2025 to 2031. Indonesia's renewable energy market is driven by its abundant natural resources and growing energy demand. The country is rich in renewable energy potential, including geothermal, solar, wind, and hydropower. Ambitious government targets, such as achieving 23% of the national energy mix from renewables by 2025, serve as a significant motivator for investment and development in the sector.

However, several challenges hinder the progress of renewable energy adoption. High initial investment costs, regulatory complexities, and a lack of infrastructure remain key barriers. The dominance of coal in Indonesia's energy mix further complicates the transition towards renewables.

Indonesia Renewable Energy Market Trends

Indonesia is witnessing rapid developments in solar energy due to favorable equatorial positioning and rooftop solar initiatives. The government’s push for solar PV systems, particularly in rural and off-grid regions, is fostering adoption. Geothermal energy continues to be a major contributor, with several new projects underway. Hybrid energy solutions and mini-grids are also trending, particularly for remote island electrification.

Investment Opportunities in the Indonesia Renewable Energy Market

Significant investment opportunities exist across multiple renewable sectors in Indonesia. The government’s focus on improving energy access in remote areas is driving demand for decentralized renewable systems. Incentives under the Energy Transition Mechanism (ETM) and programs supporting domestic solar panel manufacturing are encouraging foreign and local investments. Sectors like geothermal, battery energy storage, and solar mini-grids present attractive prospects.

Leading Players in the Indonesia Renewable Energy Market

The Indonesia renewable energy market features a mix of domestic and global companies driving innovation and capacity expansion. Leading players include Pertamina Geothermal Energy, PLN (Perusahaan Listrik Negara), and Supreme Energy, which are instrumental in geothermal development. Solar and wind segments are gaining traction through companies like Vena Energy and Total Eren.

Government Regulations

Indonesia has introduced several regulations to boost renewable energy adoption, including feed-in tariffs, fiscal incentives, and power purchase agreements (PPAs). The Ministry of Energy and Mineral Resources (MEMR) is actively supporting renewable project implementation through simplified licensing and procurement processes. New regulatory frameworks are aimed at increasing investor confidence by ensuring transparency and price predictability.

Future Insights of the Indonesia Renewable Energy Market

The future of Indonesia's renewable energy market looks promising, underpinned by government targets and technological innovation. Development of smart grids, digital energy monitoring systems, and grid integration solutions will enhance efficiency and reliability. With rising electricity demand, especially from industrial and commercial sectors, renewable solutions are expected to gain further traction.

Market Segmentation Analysis

The report offers a comprehensive study of the following market segments and their leading categories:​

Solar Energy to Dominate the Market – By Type

According to Nitesh, Research Manager at 6Wresearch, solar energy is expected to dominate Indonesia’s renewable energy market due to its vast potential and government incentives. The country's geographic advantage, combined with policy efforts like the Rooftop Solar Program, is accelerating the deployment of solar solutions across both residential and industrial sectors.

Commercial & Industrial Segment to Lead – By End-User

The commercial and industrial end-user segment is poised to lead the Indonesian market due to increasing demand for reliable and cost-efficient power. Industries are adopting renewable energy to meet sustainability targets and reduce dependence on expensive grid electricity. Green building initiatives and corporate energy transition commitments are further fueling this shift.

Key Attractiveness of the Report

• 10 Years of Market Numbers
• Historical Data Starting from 2021 to 2024
• Base Year: 2024
• Forecast Data until 2031
• Key Performance Indicators Impacting the Market
• Major Upcoming Developments and Projects

Key Highlights of the Report:

• Indonesia Renewable Energy Market Outlook
• Market Size of Indonesia Renewable Energy Market, 2024
• Forecast of Indonesia Renewable Energy Market, 2031
• Historical Data and Forecast of Indonesia Renewable Energy Revenues & Volume for the Period 2021–2031
• Indonesia Renewable Energy Market Trend Evolution
• Indonesia Renewable Energy Market Drivers and Challenges
• Indonesia Renewable Energy Price Trends
• Indonesia Renewable Energy Porter’s Five Forces
• Indonesia Renewable Energy Industry Life Cycle
• Historical Data and Forecast of Indonesia Renewable Energy Market Revenues & Volume By Technology for the Period 2021–2031
• Historical Data and Forecast of Indonesia Renewable Energy Market Revenues & Volume By Wind for the Period 2021–2031
• Historical Data and Forecast of Indonesia Renewable Energy Market Revenues & Volume By Solar for the Period 2021–2031
• Historical Data and Forecast of Indonesia Renewable Energy Market Revenues & Volume By End-User for the Period 2021–2031
• Historical Data and Forecast of Indonesia Renewable Energy Market Revenues & Volume By Utilities for the Period 2021–2031
• Historical Data and Forecast of Indonesia Renewable Energy Market Revenues & Volume By Captive Industrial for the Period 2021–2031
• Historical Data and Forecast of Indonesia Renewable Energy Market Revenues & Volume By Commercial for the Period 2021–2031
• Historical Data and Forecast of Indonesia Renewable Energy Market Revenues & Volume By Residential for the Period 2021–2031
• Indonesia Renewable Energy Import Export Trade Statistics
• Market Opportunity Assessment By Technology
• Market Opportunity Assessment By End-User
• Indonesia Renewable Energy Top Companies Market Share
• Indonesia Renewable Energy Competitive Benchmarking By Technical and Operational Parameters
• Indonesia Renewable Energy Company Profiles
• Indonesia Renewable Energy Key Strategic Recommendations

Market Covered

The report offers a comprehensive study of the subsequent market segments:

By Technology

• Wind
• Solar

By End-User

• Utilities
• Captive Industrial
• Commercial
• Residential