Indonesia Hits 16% Renewable Share, Sets Sights on 100% in a Decade

Indonesia’s renewable energy mix has reached 16%, up one point from earlier this year, the government announced on Thursday. 

According to the Energy and Mineral Resources Ministry, the increase came from the recent commercial operation of new non-fossil fuel power plants, including solar and geothermal facilities. 

“There was a significant rise to 16% just last week, driven by the operation of geothermal plants and several small-scale solar projects,” said Eniya Listiyani Dewi, director general for renewable energy at the ministry. 

Eniya noted that many industries still rely heavily on coal-powered electricity supplied by state utility PLN, but called the latest figures an encouraging step forward. “We are grateful the renewable share has reached 16%. By year-end, we expect new micro-hydro plants to begin operation as well,” she said. 

Government’s Ambitious Plans 

In his state address last month, President Prabowo Subianto outlined an ambitious vision: achieving 100% renewable power generation within the next 10 years, or even sooner. 

To support the transition, the government plans to allocate IDR 402.4 trillion (USD 25 billion) for energy security in 2026, nearly double this year’s IDR 203.1 trillion budget. 

“We will accelerate our clean energy transition,” Prabowo said, highlighting solar, hydropower, and geothermal energy as the cornerstones of Indonesia’s renewable expansion. 

Indonesia’s installed renewable capacity stood at 15.2 gigawatts, or 14.5% of total national generation, as of mid-2025, according to government data. 

Energy experts say Indonesia’s abundant geothermal reserves and vast solar potential give it the resources to close the gap, but sustained investment and regulatory reforms will be critical if it is to meet its green energy targets. 

While Indonesia has made progress, its renewable share still lags behind other major emerging economies. India, for example, generated about 26% of its electricity from renewables in 2024, while Brazil derived over 45% of its power from hydro, wind, and solar. 

Source: Jakarta Globe

Surging Coconut Exports Squeeze Local Processing Industry

HIPKI deputy chairman Amrizal Idroes said the value of fresh coconut exports in July amounted to around USD 52 million, up almost 150% year-on-year (yoy).  

“Most of the increased production is sold as raw material abroad, especially to China,” he told Kontan on Monday.  

Exports of processed coconut products also showed strong growth. Shipments of desiccated coconut rose more than 85% to USD 32 million, while coconut milk exports climbed to nearly USD 36 million, up around 50% yoy.  

Desiccated coconut is coconut meat that has been grated or shredded and then dried. 

However, coconut water concentrate exports fell by 32% yoy to just USD 2 million, with processors unable to secure enough of the fruit. 

Coconut water processors are running short of supply, because most fresh coconuts have already been exported,” Amrizal explained, noting mounting pressure on coconut-based industries. 

Amrizal said only efficient and fully integrated companies, those capable of producing oil, milk, activated carbon and coconut water from each nut, could survive in today’s market environment. Meanwhile, companies that relied on only one product, such as desiccated coconut, were much more vulnerable to production halts. 

To strike a balance, the HIPKI has proposed an export levy on fresh coconuts. A draft regulation is being prepared, but no final decision has been announced. “If the levy is imposed, farm-gate prices will inevitably fall below IDR 4,500 to IDR 5,000. The government is calculating whether farmers can absorb that impact,” he added. 

Amrizal emphasized the need for replanting programs, efficiency improvements and tighter integration of processors and farmers.  

Many of Indonesia’s coconut trees are old and declining in productivity, making replanting critical to sustaining the sector. 

Previously, Trade Minister Budi Santoso noted that most coconuts were shipped to China. 

“When exported, fresh coconuts fetch high prices. Domestically, the price is low. Naturally, farmers choose to export,” said Budi when met at the Trade Ministry office on May 20, as quoted by Tempo. 

Coordinating Food Minister Zulkifli Hasan made clear that the government would not halt exports despite industry complaints. 

“Farmers are making good money right now, which is positive. The solution is to plant more,” he said in May at the World of Coffee 2025 exhibition. 

Indonesia, the world’s second-largest coconut producer with 2.83 million tonnes in 2023 and exports worth USD 1.55 billion, has faced mounting pressure as aging trees, raw material shortages and surging exports have forced dozens of processors to shut since late 2024. 

Palm oil faces similar strains. Despite producing 46.5 million tonnes in 2024, the world’s largest output, Indonesia has repeatedly seen cooking oil shortages, prompting the 2022 launch of the Minyakita program requiring exporters to reserve part of their crude palm oil for sales in the domestic market. 

The House of Representatives has been preparing a strategic commodities bill to regulate key plantation crops from upstream to downstream, covering cloves, cocoa, rubber, coconut, palm oil, coffee, sago, sugarcane, tea and tobacco.  

Initiated in 2024, the bill is now under discussion with relevant ministries, which would allow the government to set base prices, taxes and export rules while prioritizing downstream industries, aiming to tackle long-standing issues of supply, processing and farmer welfare. 

Source: Jakarta Globe 

Indonesia to Establish Six New SEZs, Including Global Halal Hub

The Indonesian government is preparing to establish six new Special Economic Zones (SEZs), including one in Sidoarjo, East Java, which will serve as a hub for the global halal industry. 
 
Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, said the establishment of the six SEZs is awaiting approval from President Prabowo Subianto. 
 
"Previously there were seven proposed SEZs, but one — the Batang Industrial Special Economic Zone (KITB) — has already been approved. Six more remain, one of which is the Halal SEZ. Hopefully, it will be approved soon," he stated at a press conference in Jakarta on Tuesday. 
 
Moegiarso explained that the halal SEZ in Sidoarjo has strong potential, as Indonesia is aiming to become a major player in the global halal supply chain. The government hopes to fill gaps in the global market that are currently dominated by other countries. 
 
As an example, he cited the gelatin industry, which is typically produced in China using pork by-products, while the demand is concentrated in the Middle East. 
 
"We want to capture that share, to extract added value from products whose initial processing is done in China, but whose markets are in the Middle East. With the Halal SEZ, we can capture the added value here," he said. 

He added that several investors have shown interest in investing in the halal SEZ, particularly in the gelatin sector and its derivatives. 
 
Currently, Indonesia operates 25 SEZs — 13 focusing on industry and 12 on services. 
 
As of June 2025, total investment in SEZs had reached IDR 294.4 trillion (USD19.4 billion), employing around 187,000 people. In the first half of 2025 alone, SEZs absorbed IDR 40.48 trillion in investment, equivalent to 48.2% of this year's IDR 84.1 trillion target. 

Source: Antara News