Indonesia Sets Ambitious Renewable Energy Target for 2026

Ministry Aims for 2% Increase in Clean Energy Mix

The Indonesian Ministry of Energy and Mineral Resources (ESDM) has announced an ambitious target to increase the country's renewable energy mix (EBT) by 2% in 2026, building on the progress made in 2025. According to Minister Bahlil Lahadalia, the EBT mix reached 15.75% in 2025, representing a 1.1% increase from 2024 levels. This steady growth trajectory positions Indonesia to potentially achieve 17.75% EBT mix by the end of 2026.

Challenges in Achieving Renewable Energy Goals

Despite the positive trend, Minister Bahlil noted that achieving significant growth in the EBT mix remains challenging due to the concurrent development of fossil fuel energy sources, particularly coal and gas. The continued investment in traditional energy infrastructure complicates efforts to rapidly transition to cleaner energy sources. However, the government's commitment to gradually increasing the renewable energy share demonstrates a strategic approach to balancing energy security with environmental considerations.

Policy Implications and Future Outlook

The ESDM's target reflects Indonesia's broader commitment to developing its renewable energy sector while managing the complexities of its energy mix. As the country continues to navigate its energy transition, the success of this initiative will depend on effective policy implementation and the ability to balance competing energy demands. The 2% target for 2026 serves as a critical milestone in Indonesia's journey toward achieving its long-term renewable energy goals.