As an important driver in Indonesia's green economy, renewable energy initiatives have been developed into three categories: commercially developed (biomass, geothermal, water), limited development (solar, wind), and under research (ocean). Indonesia has high biomass potential that includes bio-oil, bio-diesel, bio-ethanol, and bio-gas, which cover 35% of national energy consumption for household and power generator. Mountainous areas make Indonesia?s geothermal potency high as well, reaching 19,658 MW, though only 4% has been utilized. While mostly located in protected forests, the distance between geothermal source and user is one of its main challenges. As world?s largest archipelagic country, Indonesia?s water energy potential is enormous, amounting to 37,500 MW, yet only 5.6% of it has been used.

Indonesia?s slow wind speed makes its energy relatively small, thus has not been utilized optimally for rural electricity. Unlike wind, solar energy has been exploited through thermal and photovoltaic technologies. Located in tropical region, Indonesia is radiated by 4.8 kWh/m² average daily sunlight. Its ocean energy (wave, ebb and flow, and sea temperature difference) can reach 35 MW of energy for each kilometer of seashore, and Indonesia has 108,000 kilometers of it. In addition, energy conservation potential at all national-level sectors may reach 30% of its current usage, if investments in low-energy technology and culture are directed appropriately.