Influence of External Factors on Renewable Energy Acceptance in Indonesia

Indonesia, strategically positioned near the equator and within the Pacific Ring of Fire, harbours immense potential in renewable energy, including hydroelectricity, geothermal, and solar power. Despite having an estimated renewable energy capacity of 3,686 GW, current utilization remains strikingly low at 0.3%. This study assesses the government’s strategies for scaling up renewable energy sectors to meet increasing energy demands sustainably and reduce reliance on fossil fuels. We analyze the expansion efforts in solar infrastructure, focusing on the implementation and impact of rooftop photovoltaic (PV) systems, alongside examining challenges in geothermal and hydropower development. Data from a renewable energy survey in Indonesia were analyzed using SPSS and Smart PLS 3.0. Out of 1200 potential responses, 1068 were processed after editing and coding. Significant barriers include the high initial costs in remote areas and the substantial financial investment required for geothermal exploration and drilling. Despite these challenges, Indonesia’s approach involves stimulating investment through incentives and regulatory support for renewable projects. Effective collaboration between the public and private sectors is crucial for driving innovation, reducing costs, and broadening energy deployment. Addressing infrastructure deficiencies and enhancing technological advancements are imperative. Continued investment in research and development, supported by robust policy frameworks, will be vital for achieving sustainable energy security and reducing carbon emissions in the long term.