Indonesia: fuelling the future of shipping

The report evaluates pathways for Indonesia to transition its diverse shipping sector to zero and low carbon fuels, highlighting the roles of green hydrogen, ammonia, batteries, and sustainable biofuels. It identifies Indonesia's strategic location along the Strait of Malacca and Sunda Strait as a key opportunity to become a global bunkering hub. While the country has significant renewable potential in solar, geothermal, and hydro, it currently relies heavily on fossil fuels for electricity. The report suggests a tiered approach: batteries for small vessels and off-grid communities, and green ammonia or hydrogen for large international vessels. Achieving a 5% adoption rate by 2030 would require an investment of 45.9 to 65.4 trillion rupiah.

• The most suitable zero carbon propulsion solutions vary by vessel size: hydrogen and ammonia are recommended for large commercial vessels (tankers, containers, and bulk carriers), while direct and onboard electrification via batteries is best for small vessels such as ferries and port service vessels.
• Indonesia's geographic position along the Strait of Malacca and the Sunda Strait provides a strategic opportunity to serve as a bunkering hub for international vessels traveling between major global economies.
• Sustainable biofuels from waste are a feasible option but cannot holistically decarbonise the sector due to global demand, supply constraints, and competition from other sectors like road transport.
• Indonesia's current energy mix is heavily reliant on fossil fuels, which accounted for 86.7% of energy production in 2020, though the government aims to increase the renewable contribution to the grid above 20% by 2025.
• The country possesses diverse renewable energy potential, including geothermal (133TWh/year), solar (525-1,568TWh/year), and hydropower (105TWh/year), which could support both domestic electricity and zero carbon fuel production.
• To support a 5% adoption of zero carbon vessel technologies by 2030, Indonesia would require approximately 8.3TWh/year of renewable electricity and an investment between 45.9 and 65.4 trillion rupiah (3.18 to 4.53 billion USD).

APA

World Economic Forum (2021). Indonesia: fuelling the future of shipping. https://www3.weforum.org/docs/WEF_EDF_Zero_carbon_shipping_Indonesia_2021.pdf

Chicago

World Economic Forum. Indonesia: fuelling the future of shipping. 2021. https://www3.weforum.org/docs/WEF_EDF_Zero_carbon_shipping_Indonesia_2021.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Indonesia: fuelling the future of shipping |date=2021 |url=https://www3.weforum.org/docs/WEF_EDF_Zero_carbon_shipping_Indonesia_2021.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2021indonesia, author = {{World Economic Forum}}, title = {{Indonesia: fuelling the future of shipping}}, institution = {World Economic Forum}, year = {2021}, url = {https://www3.weforum.org/docs/WEF_EDF_Zero_carbon_shipping_Indonesia_2021.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }