Indonesia APAC Battery Energy Storage System Market Research Report By Element (Battery, Other Elements), By Battery Type (Lithium-ion Batteries, Advanced Lead-Acid Batteries, Flow Batteries, Others), By Connection Type (On-grid, Off-grid), By Ownership (Customer-Owned, Third-Party Owned, Utility-Owned), By Energy Capacity (Below 100 MWh, Between 100 to 500 MWh, Above 500 MWh) and By Application (Residential, Commercial, Utility) - Forecast to 2035

Indonesia APAC Battery Energy Storage System Market Overview

As per MRFR analysis, the Indonesia APAC Battery Energy Storage System Market Size was estimated at 78.13 (USD Million) in 2023. The Indonesia APAC Battery Energy Storage System Market Industry is expected to grow from 99.22(USD Million) in 2024 to 515.73 (USD Million) by 2035. The Indonesia APAC Battery Energy Storage System Market CAGR (growth rate) is expected to be around 16.165% during the forecast period (2025 - 2035)

Key Indonesia APAC Battery Energy Storage System Market Trends Highlighted

Indonesia's market for Battery Energy Storage Systems (BESS) is experiencing significant developments, primarily driven by the government's commitment to renewable energy sources. The nation's aggressive goal of producing 23 percent of its energy from renewable sources by 2025 is encouraging the use of battery energy storage systems as a way to control the intermittent nature of renewable energy production and guarantee a steady electricity supply. This legislative framework presents a wealth of opportunities for BESS investment as companies and power producers seek to reduce their reliance on fossil fuels and improve energy reliability. Furthermore, Indonesia's geographical difficulties—such as its extensive archipelago structure—emphasize the necessity of regional energy solutions.

The development of battery energy storage systems can help achieve the national goal of increasing energy equity by providing a reliable electricity supply to rural places. Technological developments are also receiving more attention, with both domestic and foreign businesses working together to improve the effectiveness and affordability of energy storage systems. By using the knowledge required to meet Indonesia's particular market demands, these collaborations help accelerate market expansion. Battery storage integration into current energy systems is gaining popularity in both the public and private sectors, according to recent trends. More resilient energy infrastructure can be achieved as a result of many stakeholders being more conscious of BESS's capacity to maintain grid stability and offer ancillary services to power systems.

Consumers' increased awareness of environmental issues is driving up demand for sustainable energy solutions, which is supporting Indonesia's BESS investment environment. The market is anticipated to grow and offer a plethora of opportunities for businesses operating in the energy industry with sufficient legislative backing and ongoing innovation.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Indonesia APAC Battery Energy Storage System Market Drivers

Government Initiatives Supporting Renewable Energy

The Indonesian government is placing significant emphasis on renewable energy development as part of its energy transition policy, aiming for 23% energy generation from renewable sources by 2025. This policy includes the integration of Battery Energy Storage Systems, which are crucial for handling the variability of renewable energy sources like wind and solar. The Ministry of Energy and Mineral Resources has outlined plans to incentivize investments in energy storage technology, which will directly bolster the Indonesia APAC Battery Energy Storage System Market Industry.

Notably, in early 2022, the government announced IDR 30 trillion (approximately USD 2 billion) worth of funding for renewable energy initiatives that encompass energy storage solutions. This funding demonstrates strong governmental support that is likely to enhance market growth and attract investments from companies like the State Electricity Company (PLN) and international firms looking to contribute to energy stability and sustainability in Indonesia.

Rising Energy Demand in Indonesia

Indonesia's energy consumption has been on a steady rise, projected to increase significantly by over 50% by 2030 due to rapid industrial growth and urbanization. This increase in energy demand drives the need for Battery Energy Storage Systems to ensure a reliable and resilient power supply. The Indonesian Energy Statistics report indicates that electricity consumption reached 283 terawatt hours in 2021, up from 260 terawatt hours in 2020. Such trends underscore the urgency for efficient storage solutions to manage peak load and reduce dependency on fossil fuels.

Companies like Siemens and ABB are likely to capitalize on this growing demand by offering advanced storage technologies, thus positively impacting the Indonesia APAC Battery Energy Storage System Market Industry.

Decline in Battery Costs and Technological Advances

The continuous decline in lithium-ion battery prices, which have dropped by nearly 85% over the past decade, is significantly making energy storage solutions more affordable. According to industry reports, the average cost of lithium-ion battery packs fell to about USD 137 per kWh in 2020, which is pivotal for enhancing the economic feasibility of Battery Energy Storage Systems. This trend allows for broader adoption of battery technology in Indonesia, especially as the country transitions towards cleaner energy solutions.

Companies such as Tesla and LG Chem are at the forefront of these technological advancements, pushing the boundaries of energy density and efficiency, thus contributing to the growth potential of the Indonesia APAC Battery Energy Storage System Market Industry as more operators consider investing in this promising sector.

Indonesia APAC Battery Energy Storage System Market Segment Insights

APAC Battery Energy Storage System Market Element Insights  

The Element segment of the Indonesia APAC Battery Energy Storage System Market has gained considerable attention due to its vital role in supporting the growing energy demands and sustainability efforts in the region. This segment is essentially categorized into two primary aspects: Battery and Other Elements. The Battery segment is pivotal as it serves as the core component responsible for energy storage and management, directly impacting the efficiency and reliability of energy systems. As Indonesia continues to transition towards renewable energy sources, the emphasis on advanced battery technologies is increasing, which is driving innovations in materials and designs aimed at enhancing energy density, lifespan, and cost-effectiveness.

On the other hand, the Other Elements category entails various auxiliary components that complement battery systems, including inverters, converters, and energy management systems. These elements are crucial for optimizing the performance of the entire battery energy storage system by facilitating energy flow, ensuring system stability, and enhancing operational control. The significance of this segment extends beyond technology; Indonesia's government initiatives and policies aimed at promoting renewable energy have created a robust environment for investment and development in battery storage solutions.

These elements are being integrated into various applications, such as grid stabilization, peak shaving, and renewable energy integration, which are essential for managing Indonesia's unique energy challenges, such as its archipelagic nature and diverse energy needs across its many islands. Overall, the Element segment, encompassing Battery and Other Elements, is integral to the maturation and expansion of the Indonesia APAC Battery Energy Storage System Market, aligning with the national goals of reducing carbon emissions and increasing energy independence while fostering economic growth through innovative technologies.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

APAC Battery Energy Storage System Market Battery Type Insights  

The Indonesia APAC Battery Energy Storage System Market showcases significant growth potential, particularly across various Battery Type segments. Lithium-ion Batteries are expected to lead the market due to their high energy density, efficiency, and decreasing costs, making them a preferred choice for renewable energy integration and electric vehicles in Indonesia. Advanced Lead-Acid Batteries represent a cost-effective alternative, primarily deployed in stationary storage applications, contributing to the reliability of power infrastructure in remote areas.

Flow Batteries, while still emerging, offer substantial advantages in terms of scalability and long cycle life, which aligns with Indonesia's goals in sustainability and energy resilience. Meanwhile, the 'Others' category includes various innovative battery technologies that are gaining traction, presenting new opportunities for energy storage solutions. The diverse Battery Type segmentation illustrates the robust landscape of the Indonesia APAC Battery Energy Storage System Market, driven by government initiatives to enhance renewable energy adoption, energy security, and grid stability.

Additionally, the trends toward smart grids and energy management systems further augment the significance of these battery technologies in supporting Indonesia's energy transition efforts.

APAC Battery Energy Storage System Market Connection Type Insights  

The Indonesia APAC Battery Energy Storage System Market is increasingly segmented by Connection Type, focusing on On-grid and Off-grid systems. Indonesia's commitment to renewable energy and energy diversification has positioned On-grid systems as crucial for grid stability and the integration of renewable energy sources, reflecting the government's plans to increase the share of renewables in its energy mix. These systems provide valuable grid services, reducing reliance on fossil fuels and enhancing energy efficiency. Conversely, Off-grid systems are gaining significance in remote areas of Indonesia where grid connectivity is limited or non-existent.

These systems offer energy independence and sustainable solutions for rural electrification, catering to communities that are traditionally underserved. The growth in Off-grid solutions aligns with Indonesia’s national goals to improve energy access and foster economic development in rural regions. Both Connection Types are critical to addressing the unique energy challenges faced by Indonesia, with strong growth opportunities driven by technological advancements and supportive government policies. Overall, the dynamics between On-grid and Off-grid systems highlight the diverse approach needed to strengthen the nation's energy infrastructure, drive sustainability initiatives, and support economic inclusion.

APAC Battery Energy Storage System Market Ownership Insights  

The Ownership segment of the Indonesia APAC Battery Energy Storage System Market showcases diverse options that cater to varying consumer needs and preferences. Customer-owned systems have been pivotal, enabling individuals and businesses to leverage energy storage for self-consumption and enhancing energy independence. This trend can be attributed to the growing awareness among consumers about the benefits of renewable energy and energy management. Third-party-owned solutions have also gained traction, particularly in urban areas, as they allow stakeholders to utilize battery systems without large upfront investments.

Such models typically include leasing or power purchase agreements, making them accessible to a wider range of customers. Utility-owned systems play a crucial role in grid stability and large-scale energy management, allowing utilities to store energy during low demand and supply during peak hours, thus facilitating a more balanced energy environment. Each of these ownership forms contributes significantly to the overall development and adaption of battery energy storage technology in Indonesia, aligning with government initiatives to promote sustainable energy solutions.

The focus on these distinct ownership options demonstrates the increasing commitment towards efficient energy use and the transition to a more resilient energy infrastructure.

APAC Battery Energy Storage System Market Energy Capacity Insights  

The Indonesia APAC Battery Energy Storage System Market, particularly in the Energy Capacity segment, exhibits a notable diversification among various capacity ranges, reflecting distinct applications and opportunities in energy management. The segment below 100 MWh often addresses localized energy storage needs, supporting renewable integration and enhancing grid stability in smaller urban and rural settings. In contrast, the category between 100 to 500 MWh plays a critical role in larger industrial applications and commercial setups, offering substantial capacity for energy dispatch and demand charge management.

This segment significantly contributes to optimizing energy costs and improving overall system resilience. Furthermore, the segment above 500 MWh encompasses utility-scale projects that are increasingly viewed as vital in the transition towards a more sustainable energy landscape, particularly as Indonesia aims to boost its renewable energy share. As the country progresses towards its energy transition goals, the adoption of advanced battery technologies and the growing emphasis on energy security drive market growth, underlining the potential of these various capacity categories within the broader Indonesia APAC Battery Energy Storage System Market landscape.

The ongoing commitment to renewable energy policies further enhances the importance of these segments, showcasing an increasing alignment with national electrification objectives and carbon reduction commitments.

APAC Battery Energy Storage System Market Application Insights  

The Indonesia APAC Battery Energy Storage System Market, centered on various applications, represents a dynamic landscape where energy efficiency and sustainability are paramount. The market encompasses diverse segments such as Residential, Commercial, and Utility applications. The Residential segment plays a crucial role in enabling homeowners to effectively manage energy use, particularly in the growing movement towards rooftop solar installations and sustainable living. Commercial applications focus on energy cost management and reliability, allowing businesses to mitigate peak demand charges and leverage renewable energy sources, which aligns with Indonesia's commitment to reducing carbon emissions.

The Utility sector, on the other hand, is recognized for its capability to stabilize the grid and enhance energy storage solutions, particularly as Indonesia boosts its renewable energy transition. These segments collectively contribute to meeting rising energy demands while addressing environmental concerns. As the country moves towards smart grid initiatives, the emphasis on energy storage technology is expected to play a vital role in augmenting energy resilience and efficiency across these applications, paving the way for a more sustainable energy future in Indonesia.

Indonesia APAC Battery Energy Storage System Market Key Players and Competitive Insights

The competitive landscape of the Indonesia APAC Battery Energy Storage System market is rapidly evolving, driven by advancements in battery technology, increased demand for renewable energy sources, and supportive government initiatives. With Indonesia aiming for a significant transition toward sustainable energy solutions to combat climate change and promote energy independence, various players are stepping up to establish their foothold in the market. The increasing integration of renewable energy into the grid has created a robust opportunity for energy storage systems that ensure stability, reliability, and efficiency in energy supply. As investments grow and technological innovations emerge, stakeholders are vying for market share, highlighting the importance of strategic partnerships, mergers, and the development of cutting-edge products to stay ahead in this competitive arena.

Samsung SDI stands out in the Indonesia APAC Battery Energy Storage System market for its innovative solutions and strong technological capabilities. The company has developed a reputation for producing high-performance lithium-ion batteries, which are integral to energy storage systems that support grid stabilization and renewable energy integration. With its robust manufacturing capabilities and established supply chain, Samsung SDI has managed to create a solid market presence in Indonesia, providing ample batteries that cater to both utility-scale and commercial energy storage needs. The company's ongoing research and development efforts emphasize efficiency and advanced safety technologies, enabling it to maintain a leading edge over competitors. Furthermore, Samsung SDI's commitment to sustainability aligns well with Indonesia's ambition for cleaner energy solutions, making it a pivotal player in addressing the nation’s energy challenges.

General Electric has made significant inroads in the Indonesia APAC Battery Energy Storage System market, distinguishing itself with a comprehensive portfolio of energy management solutions and services. The company excels in providing integrated battery storage systems that seamlessly align with renewable energy generation, especially solar and wind power. Its product offerings not only enhance grid reliability but also facilitate cost savings for utility providers and consumers alike. GE's strength lies in its extensive experience in energy infrastructure and its commitment to innovation, allowing it to deliver advanced energy storage solutions tailored specifically to the Indonesian market's unique challenges and requirements. Additionally, GE has engaged in strategic collaborations and partnerships within the region to empower its market presence further, bolstering its ambition to support Indonesia’s energy transition. Through these initiatives and a focus on continuous improvement, General Electric enhances its capacity to meet the growing demand for efficient energy storage systems while contributing to the wider goal of sustainability in Indonesia.

Key Companies in the Indonesia APAC Battery Energy Storage System Market Include

• Samsung SDI


• General Electric


• Schneider Electric


• CATL


• AESC


• Panasonic


• Tesla


• BYD


• Hitachi


• Siemens


• Engie


• ABB


• LG Energy Solution


• EDF Renewables


• Fluence

Indonesia APAC Battery Energy Storage System Market Industry Developments

Recent news in the Indonesia APAC Battery Energy Storage System Market showcases significant advancements and partnerships among major companies. In October 2023, CATL announced plans to expand its production facility in Indonesia to meet the growing demand for battery storage solutions, while LG Energy Solution is focusing on enhancing its battery technology to support renewable energy integration in the region. Schneider Electric and Siemens have been collaborating on innovative energy management systems designed to optimize energy storage and distribution for Indonesian businesses. In July 2023, Fluence and General Electric formed a strategic alliance to develop advanced energy storage projects that contribute to Indonesia's electrification goals.

Moreover, there has been a notable growth in market valuation attributed to increased investments in renewable energy and supportive government regulations aimed at enhancing energy sustainability. Over the last two years, the Indonesian government has ramped up incentives for battery storage solutions, highlighting its commitment to achieving a more sustainable energy future. Recent developments underscore the crucial role that companies like Tesla, Panasonic, and ABB are expected to play in shaping the battery energy landscape in Indonesia.

Apac Battery Energy Storage System Market Segmentation Insights

APAC Battery Energy Storage System Market Element Outlook

• Battery


• Other Elements

APAC Battery Energy Storage System Market Battery Type Outlook

• Lithium-ion Batteries


• Advanced Lead-Acid Batteries


• Flow Batteries


• Others

APAC Battery Energy Storage System Market Connection Type Outlook

• On-grid


• Off-grid

APAC Battery Energy Storage System Market Ownership Outlook

• Customer-Owned


• Third-Party Owned


• Utility-Owned

APAC Battery Energy Storage System Market Energy Capacity Outlook

• Below 100 MWh


• Between 100 to 500 MWh


• Above 500 MWh

APAC Battery Energy Storage System Market Application Outlook

• Residential


• Commercial


• Utility

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	78.13(USD Million)
MARKET SIZE 2024	99.22(USD Million)
MARKET SIZE 2035	515.73(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	16.165% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Million
KEY COMPANIES PROFILED	Samsung SDI, General Electric, Schneider Electric, CATL, AESC, Panasonic, Tesla, BYD, Hitachi, Siemens, Engie, ABB, LG Energy Solution, EDF Renewables, Fluence
SEGMENTS COVERED	Element, Battery Type, Connection Type, Ownership, Energy Capacity, Application
KEY MARKET OPPORTUNITIES	Renewable energy integration, Government incentives support, Industrial energy cost reduction, Off-grid energy solutions, Electric vehicle charging infrastructure
KEY MARKET DYNAMICS	growing renewable energy adoption, increasing energy storage investments, government incentives and regulations, rising electricity demand, declining battery costs
COUNTRIES COVERED	Indonesia