MEMR cuts 2025 renewables target amid economic, technological hurdles

By Dominikus

The Ministry of Energy and Mineral Resources (MEMR) has officially lowered its renewable energy mix target for 2025 to a range of 17–20%, down from the original 23% set in the National Energy Policy (KEN). The revision is due to persistent challenges related to project economics, financing constraints, and technology readiness.

Speaking at an energy conference organized by WRI Indonesia on Thursday (June 12), Andriah Feby Misna, Director of Various New and Renewable Energy at MEMR, stated that although the renewable energy share continues to grow, it has not progressed at the expected pace.

 “Our target based on the earlier national energy policy was 23% by 2025, but considering the current circumstances, we have revised the policy. We now aim to reach around 17–20% renewable energy share by 2025,” she said.

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Andriah highlighted several key obstacles in the development of renewables, including project bankability, technological challenges, supply-demand imbalances, inadequate transmission infrastructure, land-use coordination, and social acceptance.

Despite the target revision, Indonesia remains committed to achieving net-zero emissions (NZE) by 2060, with major strategies centered on a moratorium on new coal-fired power plants under Presidential Regulation No. 112/2022 and a phased reduction of existing coal capacity.

As of 2024, coal accounts for 40.56% of Indonesia’s energy mix, followed by oil and gas at 28.14%, and natural gas at 16.62%. On the renewables front, the country has developed 152.3 MW of wind, 651 MW of solar, 3,428.1 MW of bioenergy, 2,646.5 MW of geothermal, 6,761.7 MW of hydropower, and 450 MW from coal gasification, bringing the total installed renewable capacity to around 14 GW.

Editing by Reiner Simanjuntak

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