Indonesia’s Net Zero Emissions Journey: The Impact of Clean Energy Targets on the Oil & Gas Industry

Explore the transformation of Indonesia's oil & gas industry, facing challenges from growing demand and emissions as it shifts towards renewable energy.

五月 2024 , 撰写者 Septian Waluyan Dhendy Fadhillah, Dara Rosdianty, Humaira Syifa, Dylan Sastilaya, Nabila Alisa, Kara Carolluna
Oil & Gas 下载
Over the last decade, Indonesia's oil & gas sector has been the country's most significant energy supplier, contributing 33.4% of its total energy supply. Despite this, the sector's contribution to Indonesia's gross domestic product (GDP) decreased by 2.6%, allowing other sectors to grow by 4.2%.  

An increase in demand for renewable energy sources, such as wind and solar energy, has fueled the sectoral decline. Experts predict that the demand for such energy sources will continue to increase in the years to come and eventually replace oil & gas as the leading energy supplier. In the past decade, environmentally-friendly energy sources have experienced a 4.5% compound annual growth rate (CAGR), showing potential for growth and sustainable development in Indonesia.

Despite the growing interest in energy transition strategies, oil & gas production continues to significantly contribute to fossil fuel CO₂ emissions. In 2021, the Ministry of Energy reported that Indonesian oil and gas players churned out an average of 658,540 barrels of oil per day (BOPD). The sector is witnessing a substantial 13.2% rise in fossil fuel emissions, amounting to nearly 330.5 million metric tons.  

These staggering numbers highlight the country's need for more Net Zero Emissions (NZE) initiatives to reduce carbon emissions from upstream, midstream, and downstream activities.  

Challenges in Achieving Net Zero Emissions  
Although there is a growing need for more NZE initiatives, local oil & gas players face several challenges in executing the renewable energy transition. Such barriers to adopting NZE practices include the following:   

Download our free white paper to unlock comprehensive insights into Indonesia's oil & gas industry and its pivotal transition towards a net zero emission economy. 



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