Indonesia's energy sector exceeds expectations with $30.3bn 2023 investment

The Ministry of Energy and Mineral Resources (ESDM) of Indonesia announced a remarkable achievement in the energy sector, securing an investment of USD 30.3 billion in 2023. This marks an impressive 11% increase compared to the previous year’s achievement of USD 27 billion.

Minister of Energy and Mineral Resources, Arifin Tasrif, highlighted the pivotal role of the oil and gas (Migas) sector as the primary contributor, accounting for USD 15.6 billion in investments. Speaking at the Press Conference on the 2023 ESDM Sector Achievements and 2024 Work Program in Jakarta, Arifin emphasized the sector’s dominance.

Following closely, the mineral and coal sector recorded an investment achievement of USD 7.46 billion, showcasing a diversified investment landscape. Additionally, the renewable energy and energy conservation (EBTKE) sector achieved USD 1.5 billion in investments, while the electricity sector contributed USD 5.8 billion.

Looking ahead to 2024, the investment target for the ESDM sector is set at USD 28.2 billion, demonstrating a continued commitment to sustainable growth. Historical data reveals a positive trajectory, with investment realizations of USD 31.2 billion in 2018, USD 30.6 billion in 2019, USD 26.3 billion in 2020, and USD 27.5 billion in 2021, followed by USD 27 billion in 2022.

Minister Arifin Tasrif acknowledged the challenges faced by the energy sector, notably the disruptions caused by the COVID-19 pandemic. Despite the setbacks in 2020, the sector demonstrated resilience and recovery in 2021-2022, reaching a pinnacle in 2023 with the remarkable realization of USD 30.3 billion. The achievement reflects the sector’s vital role in contributing positively to the country’s economy amid global challenges.