Electricity Consumption and Changes in Energy Demand in Indonesia

Brief

In 2020, Indonesia's electricity consumption reached 242 terawatt-hours (TWh), with households and industries being the primary consumers. Although electricity demand had been growing at an annual rate of around 6% in the decade before, 2020 experienced a slight decline of about 1%. The majority of electricity is used in Java-Bali and Sumatra, while provinces with high electrification rates anticipate slower growth. During the COVID-19 pandemic, household electricity consumption increased, but the commercial and industrial sectors experienced significant declines. Estimates suggest a recovery in energy demand in 2022.

• In 2020, Indonesia consumed a total of 242 terawatt-hours (TWh) of electricity. The primary consumers were households and the industrial sector, contributing approximately 46% and 29% of the total demand, respectively. The commercial sector followed as the third-largest consumer with a share of 17%.

• The remaining 8% was distributed among public buildings, social services, street lighting, and transportation. From 2009 to 2019, electricity demand grew at an average annual rate of 6%, but it experienced a decline of more than 1% in 2020.

• The majority of the generated electricity (89%) is used in Java-Bali and Sumatra. Provinces with electrification rates of around 99% anticipate slower demand growth. According to the 2021-2030 RUPTL report, provinces such as Sulawesi, East and West Nusa Tenggara, East Kalimantan, West Sumatra, and Yogyakarta are expected to witness increased electricity demand.

• The COVID-19 period led to increased household electricity consumption but was offset by a more significant decrease in the commercial and industrial sectors. Short-term energy declines in the country are expected to recover in 2022.