Understanding energy consumption patterns across different sectors is an important step for companies in developing an effective energy diversification strategy. As national energy demand continues to increase year after year, businesses must anticipate the risks of rising energy costs, supply disruptions, and the ongoing transition toward cleaner energy sources.
By identifying which sectors consume the most energy and understanding how consumption trends are evolving, companies can determine the right timing and strategy to begin diversifying their energy sources.
This has become increasingly relevant considering that in 2024, Indonesia recorded its highest final energy consumption in the past decade, reaching 1,292.34 million BOE (Barrels of Oil Equivalent), an increase of 4.53% compared to the previous year.
Behind this figure are four major energy-consuming sectors: industry, transportation, households, and commercial activities. So, which sector currently dominates Indonesia’s national energy consumption?
What Does Indonesia’s Energy Consumption Data Show?
According to the Handbook of Energy and Economic Statistics of Indonesia 2024, published by Indonesia’s Ministry of Energy and Mineral Resources, the industrial sector remained the largest consumer of final energy in Indonesia in 2024, accounting for nearly half of total national energy consumption.
It was followed by the transportation, household, commercial, and other sectors, as shown in the table below.
| Sector | Consumption (Million BOE) | Share (%) |
| Industry | 586.25 | 45.36% |
| Transportation | 460.78 | 36.65% |
| Households | 175.51 | 13.58% |
| Commercial | 58.36 | 4.52% |
| Other Sectors | 11.44 | 0.89% |
Energy consumption varies across sectors depending on the nature of their activities. The industrial sector includes manufacturing and raw material processing activities such as nickel and steel smelters, cement plants, textile manufacturing, fertilizer production, and petrochemical processing.
Meanwhile, the transportation sector covers all modes of passenger and freight transportation, including motor vehicles, logistics trucks, aviation, and domestic shipping, with approximately 85% of its energy consumption coming from road transportation.
The household sector primarily consumes energy for cooking, lighting, and electrical appliances. The commercial sector, on the other hand, includes office buildings, shopping centers, hotels, hospitals, and public service facilities, where electricity is mainly used for air conditioning, lighting, and overall building operations.
Read More: 5 Ways to Tackle Global Warming and Save the Planet’s Future
How Has the Dominant Energy Consumer Shifted Over the Past Decade?
Energy consumption dominance in Indonesia has not remained static. Instead, it has evolved alongside economic and industrial development.
Until the mid-2010s, the transportation sector was Indonesia’s largest energy consumer. In 2014, transportation accounted for 45.08% of total national energy consumption, while the industrial sector represented only 32.04%.
| Year | Industry | Transportation |
| 2014 | 32.04% | 45.08% |
| 2019 | 37.75% | 42.94% |
| 2022 | 44.56% | 37.67% |
| 2024 | 45.94% | 36.11% |
However, this trend changed over the following years. Beginning in the post-2020 period, energy consumption in the industrial sector increased rapidly alongside the expansion of downstream mineral processing industries, particularly nickel and steel smelters. At the same time, transportation energy demand declined during the COVID-19 pandemic and recovered at a slower pace.
This shift did not happen by chance. One of its primary drivers was the government’s downstream mineral processing policy, which requires minerals to undergo domestic processing and refining before export to increase their added value.
The policy stimulated growth in processing industries, significantly increased industrial energy demand, and ultimately shifted the industrial sector ahead of transportation as Indonesia’s largest energy consumer.
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What Energy Challenges Will the Industrial Sector Face in the Future?
As industrial energy consumption continues to rise, the sector is facing increasingly complex challenges.
Today, Indonesia’s industries remain heavily dependent on coal and petroleum as their primary energy sources.
This dependence exposes companies to global energy price fluctuations that can significantly increase operating costs while also creating supply risks due to geopolitical tensions.
At the same time, investors and global markets are placing greater emphasis on Environmental, Social, and Governance (ESG) principles, requiring companies to gradually reduce their reliance on high-emission energy sources.
Furthermore, decarbonization targets and net-zero emissions commitments are driving industrial sectors to transition toward lower-carbon energy sources.
These challenges are expected to become even greater as continued growth in manufacturing and downstream processing activities drives higher energy demand in the years ahead.
For this reason, industries need to build energy systems that are more reliable, cleaner, and less dependent on a single energy source. Energy diversification has become one of the most important strategies for strengthening energy resilience while ensuring long-term business sustainability.
Read More: Refinery Process – How Crude Oil Is Turned into Fuel
What Is the Role of LNG in Industrial Energy Diversification?
Liquefied Natural Gas (LNG) is natural gas that has been cooled until it becomes a liquid. This process significantly reduces its volume, making it easier to store and transport over long distances.
LNG is increasingly recognized as a transition fuel because it produces lower carbon emissions, particulate matter, and sulfur emissions than coal while offering high combustion efficiency.
LNG can also be used to fuel captive power plants, boilers, furnaces, and various industrial processes requiring thermal energy. These characteristics make it highly relevant for industries such as smelting, metal manufacturing, cement production, petrochemicals, paper manufacturing, and industrial estates.
With these advantages, LNG can serve as a transition solution that helps industries maintain reliable energy supplies, improve operational efficiency, and support decarbonization targets.
However, maximizing LNG’s benefits requires not only a stable supply but also a secure and well-managed supply chain covering storage, transportation, and regasification at operational sites.
Without adequate infrastructure and technical expertise, industries may find it difficult to fully realize LNG’s potential as a transition energy solution.
That is why PGN LNG Indonesia serves as a trusted energy partner, helping industries optimize their use of LNG. Beyond providing a reliable LNG supply, we offer customized solutions tailored to each industry’s operational requirements.
Discover how we can help meet your industrial energy needs. Read the full article here: LNG Provider for Meeting Industrial Energy Needs.
References
- ESDM. Accessed in 2026. Handbook of Energy & Economic Statistics of Indonesia 2024
- IEA. Accessed in 2026. Indonesia
- ScienceDirect. Accessed in 2026. Sustainability of Indonesia’s Transportation Sector Energy and Resources Demand Under Low Carbon Transition Strategies
