Overview
Table: total Market Size for Energy, Unit: USD Millions
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (est.) |
Total Exports | 30,062 | 50,860 | 82,216 | 68,298 | 68,768 | 64,500 |
Total Imports | 23,860 | 40,613 | 55,854 | 49,817 | 49,646 | 55,800 |
Export to U.S. | 329 | 377 | 388 | 279 | 471 | 435 |
Imports from the U.S. | 1,398 | 2,872 | 2,788 | 2,647 | 3,338 | 3,820 |
Trade Surplus/Deficit | (1,069) | (2,495) | (2,400) | (2,368) | (2,867) | (3,385) |
Exchange Rate | 14,582 | 14,308 | 14,850 | 15,237 | 15,855 | N/A |
Data Sources: Global Trade Atlas. Average exchange rate of Indonesian rupiah to U.S. dollars from the World Bank.
Indonesia’s Energy Sector
Indonesia’s energy sector remains a cornerstone of its economic development, with a strong emphasis on traditional energy sources such as coal, oil, and natural gas. Coal continues to be the dominant source for electricity generation, accounting for approximately 61% of the national energy mix, followed by natural gas at approximately 20%, while the remaining share comes from renewable energy sources. The government is focused on enhancing energy sovereignty by meeting growing domestic demand through the expansion of Indonesia’s domestic fossil fuel-based power generation and infrastructure.
The state-owned electricity company, PT Perusahaan Listrik Negara (PLN), plays a dominant role in the sector, managing a significant portion of the country’s power generation, transmission, and distribution. As of the end of 2024, Indonesia’s total installed power generation capacity reached approximately 101 GW, with coal-fired power plants contributing the majority share.
In response to recent trade discussions, Indonesia has expressed its intent to increase imports of U.S. energy commodities, including crude oil, liquefied petroleum gas (LPG) and certain fuels. Currently, the United States supplies around 60 percent of Indonesia’s LPG.
Several Indonesian policymakers, including Minister of Energy and Mineral Resources Bahlil Lahadalia, highlighted plans to boost the proportion of U.S. crude oil imports, which presently constitute about 4% of Indonesia’s total oil and gas imports. This strategic move aims to diversify Indonesia’s energy sources and reinforce trade ties with the United States.
Pertamina, Indonesia’s state-owned oil and gas company, is the dominant player across the upstream, midstream, and downstream segments. It plays a critical role in energy security, refining, fuel distribution, and increasingly, new and renewable energy (NRE). Pertamina covers approximately 55–60% of Indonesia’s total energy supply including oil, gas, and fuel retail sectors. It manages over 90% of fuel distribution and has a near-monopoly on LPG and fuel importation.
As part of Indonesia’s efforts toward energy sovereignty, Indonesia auctioned 11 oil and gas blocks in 2024 and launched an additional 3 blocks in 2025, with a total potential of 2.2 billion barrels of oil equivalent (BOE) from the 2025 blocks alone. These auctions are part of the government’s plan to offer 60 blocks between 2024-2028. Indonesia has long articulated a policy target of boosting production from 600,000 BOE/day to 1 million BOE/day by 2030. To achieve this, Indonesia is looking for advanced technologies such as hydraulic fracking on unconventional (source rock), enhanced oil recovery (EOR), and horizontal drilling (fracking), along with efforts to reactivate over 4,000 identified idle wells. There are also opportunities for onshore and offshore LNG technologies in underexplored natural gas reserves in Eastern Indonesia including Sulawesi, Maluku, and Jayapura region as well as potential to scale up production in existing blocks.
Indonesia aims to enhance its integrated gas infrastructure by developing a pipeline network connecting Aceh Island to Sumatra and Java. This initiative presents significant opportunities in gas transmission and distribution pipeline systems both land and sea.
The Ministry of Industry plans to release carbon market regulations in 2025 targeting high-emission, coal-intensive sectors such as cement, steel, textiles, food and beverages, chemicals, and fertilizers. Implementation is expected to begin in 2027. This regulatory shift will drive demand for Carbon Capture and Storage (CCS) technologies, 15 potential CCS/CCUS projects have already been identified and create opportunities for low emission energy alternatives like LNG and hydrogen.
The Ministry of Energy and Mineral Resources (EMR) Regulation No. 16/2024 and Presidential Regulation No. 14/2024 have been issued to govern the implementation of carbon storage activities within licensed carbon storage areas. These regulations enable private sector participation in carbon capture and storage (CCS) projects and allow them to propose designated CCS areas.
Indonesia has a geothermal energy potential of 23 GW, but as of 2024, only 2,597 MW (11%) has been developed. To attract more foreign investment in the sector, the government issued Ministerial Regulation ESDM No. 11/2024, which mandates TKDN compliance for all new geothermal and other electricity infrastructure projects to stimulate local industry and retain economic benefits within Indonesia.
Indonesia officially included nuclear energy in its 2024-2035 National’s Electricity Supply Business Plan (RUPTL), signaling its commitment to making nuclear part of the country’s future energy strategy. The government aims to integrate nuclear into the national energy mix by 2032, starting with up to two 250 MW plants.
Leading Sub-sectors
U.S. companies have competitive advantages in several key areas of Indonesia’s energy sector:
- Power Generation Equipment: High-efficiency turbines and related components for coal and gas-fired power plants.
- Transmission and Distribution: Advanced equipment and technologies to enhance grid reliability and efficiency.
- Smart Grid Solutions: Technologies to modernize Indonesia’s electrical grid, improving monitoring and management capabilities.
- Oil, Gas and Geothermal Infrastructure: Equipment and services for exploration, drilling and refining operations.
Opportunities
Indonesia’s commitment to expanding its energy infrastructure presents numerous opportunities for U.S. businesses:
- Infrastructure Development: The government’s plan to add 35 GW of new power generation capacity necessitates substantial investments in power plants, transmission lines, and substations.
- Oil and Gas Exploration: With ongoing efforts to boost domestic production, there is growing demand for advanced exploration techniques, production optimization technologies, modern drilling solutions, and comprehensive LNG infrastructure both onshore and offshore.
- Energy Equipment Imports: Indonesia plans to increase imports of U.S. energy commodities will open opportunities for suppliers of crude oil and liquefied petroleum gas (LPG) and U.S. refinery technologies, and related equipment. Technology solutions, including Carbon Capture and Storage (CCS/CCUS), will play a critical role in helping the oil and gas industry reduce its overall emissions.
- Technical Training and Services: As the sector grows, there is a need for specialized training programs and technical services to support the workforce and maintain equipment.
Resources
- Ministry of Energy and Mineral Resources ESDM
- Directorate General of Electricity, Ministry of Energy and Mineral Resources ESDM-Electricity Directorate
- Directorate General of New & Renewable and Energy Conservation, Ministry of Energy and Mineral Resources ESDM-New Renewable Energy Directorate
- Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), SKK Migas
- State-owned electric company - PT Perusahaan Listrik Negara PLN
- APLSI (Indonesia Independent Power Producer Association)
- Indonesia Petroleum Association Convention and Exhibition
- Global Hydrogen Ecosystem Summit & Exhibition 2025
- 11th IndoGAS Conference & Exhibition
Interested parties may contact Commercial Specialist Ari Febriana at Ari.Febriana@trade.gov