1 September, 2017
Indonesia’s energy consumption increased by 5.9% in 2016, having doubled over the past 20 years. Coal consumption grew rapidly (+22.2%) in 2016 to its highest level ever. Oil remained Indonesia’s dominant fuel (41% of primary energy consumption) in 2016, followed by coal (36%) and natural gas (19%). Indonesia produced 55% of its oil consumption in 2016, compared to an oil surplus as recently as 2002.
Natural gas consumption fell by 7% in 2016 – to its lowest level since 2007 and more than 13% lower than its peak in 2010. After declining in 2014 and 2015, hydro grew by 4.8% in 2016 and accounted for just under 2% of Indonesia’s energy consumption.
The world's fourth most populated country and a rapidly growing economy, Indonesia is highly dependent on oil and coal to meet its energy demands. Oil constitutes 46.08 per cent of the country's energy mix, while coal constitutes about 30.90 per cent, gas 18.26 per cent and renewable only five per cent, owing mainly to heavily subsidised domestic oil prices, the challenges of adapting to a rapidly evolving legal and regulatory environment, and the high costs of renewable- energy technologies.
Indonesia's primary energy consumption increased by 5.9 per cent in 2016, having doubled over the last 20 years. In the past decade, Indonesia’s energy consumption stood at about 122.1 MtoE in the year 2005, steadily going up to 134.9 MtoE in 2009 and seeing a spike in 2010 of 148.8 MtoE. The country's energy consumption in 2015 stood at 195.6 MtoE.
Indonesia currently produces about 800,000 barrels of crude oil a day and imports about 500,000 barrels of crude oil and about 800,000 barrels of refined products to meet its consumption. In 2005, Indonesia consumed about 61.5 million tonnes of oil, remaining at almost the same level for the next few years and then reaching up to 64.2 million tonnes by the end of the decade in 2010.
The country's oil consumption again saw a jump in the following year, recorded at 73.1 million tonnes and then remaining at almost the same level until the year 2015, where it fell slightly to 73.5 million tonnes, as per the BP Statistical Review of World Energy.
Conversely, the country's natural gas consumption fell by seven per cent in 2016 - to its lowest level since 2007 and more than 13 per cent lower than its peak in 2010. From 20015 to 2010, the country saw natural gas consumption in the range of 32.3 MtoE to 39.1 MtoE. In 2011, the figures dropped to 37.9 MtOE and again dropped to 35.8 MtoE in the year 2015.
With regards to coal, which is a dominant fuel in the country's energy mix, its production in 2016 fell by 6.2 per cent, which is its largest fall ever although coal consumption in the country is otherwise growing rapidly.
In 2005, Indonesia recorded coal consumption of 24.4 MtoE, steadily rising up to 39.5 MtoE till 2010 and finally going up to a record 80.3 MtoE in 2015. The country’s share of global coal production was seven per cent.
Although reliance on domestic coal, as well as imported petroleum products, has increased in recent years, Indonesia is adding more renewable capacity to its energy mix.
The country aims to achieve 23% renewable energy use by 2025, and 31% by 2050, as part of its plans to reduce greenhouse gas emissions in line with the objectives of the Paris climate agreement.