Indonesia Offshore Wind Market Size, Share, Trends and Forecasts 2030

Introduction

The Indonesia Offshore Wind Market is witnessing accelerated growth as the country intensifies its transition toward renewable energy. Offshore wind has emerged as a cornerstone of Indonesia’s decarbonization roadmap due to its high energy yield, scalable capacity, and minimal land use conflicts. With expansive coastlines and favorable wind conditions, Indonesia is strategically positioned to harness offshore wind to meet its energy security and climate targets.

Governments, utilities, and private developers in Indonesia are increasingly collaborating to establish large-scale wind farms in shallow and deep waters. Technological advancements in turbine design, floating platforms, and grid connectivity are lowering costs and enabling broader deployment across coastal zones. Additionally, offshore wind projects are now linked to green hydrogen production, further amplifying their strategic value in Indonesia’s low-carbon economy.

Growth Drivers For The Indonesia Offshore Wind Market

• Renewable Energy Targets and Climate Commitments
  Indonesia has committed to aggressive climate targets, including net-zero emissions by mid-century. Offshore wind is identified as a critical enabler to reduce dependence on fossil fuels and meet national renewable energy quotas.
• Abundant Coastal and Wind Resources
  Indonesia boasts long coastlines with high wind speeds and shallow seabeds, creating ideal conditions for fixed and floating offshore wind installations. These geographical advantages offer a significant edge in project economics and scalability.
• Falling Levelized Cost of Energy (LCOE)
  Continued technological innovation and economies of scale have brought down the cost of offshore wind in Indonesia. Larger turbines, advanced foundations, and efficient installation techniques contribute to improved project viability.
• Government Incentives and Policy Support
  Feed-in tariffs, Contracts for Difference (CfD), tax credits, and offshore leasing frameworks are being introduced or expanded in Indonesia to attract investment and accelerate project pipelines.
• Industrialization and Local Supply Chain Development
  Offshore wind is driving new industrial opportunities in Indonesia, including local manufacturing of turbine components, offshore vessel construction, and port infrastructure development, boosting employment and GDP contribution.
  
  

Market Trends In The Indonesia Offshore Wind Market

• Shift Toward Floating Wind Technology
  Indonesia is exploring deepwater installations using floating wind platforms, unlocking new marine zones previously unsuitable for fixed-bottom turbines. This trend broadens project scope and aligns with global innovation trends.
• Integration with Green Hydrogen Production
  Co-locating offshore wind farms with electrolysis facilities is gaining traction in Indonesia. Offshore wind-powered hydrogen production supports decarbonization of hard-to-abate sectors and energy export strategies.
• Digitalization and Smart Monitoring
  Deployment of AI, IoT, and digital twins in offshore wind projects in Indonesia enhances asset performance, predictive maintenance, and real-time energy forecasting, improving overall system efficiency.
• Hybrid Offshore Projects and Grid Storage Integration
  Developers in Indonesia are combining offshore wind with battery storage and interconnection with solar or tidal energy sources, optimizing grid stability and renewable utilization.
• Cross-Border Grid Interconnectivity
  Offshore wind in Indonesia is becoming a regional energy connector. Plans for international power grids and shared subsea infrastructure are expanding the market’s geopolitical and economic relevance.
  
  

Challenges In The Indonesia Offshore Wind Market

• High Capital Expenditure and Long ROI
  Despite declining costs, offshore wind projects in Indonesia require substantial upfront investments, long permitting processes, and delayed financial returns, posing challenges for smaller developers.
• Grid Integration and Transmission Bottlenecks
  Limited grid capacity and outdated onshore transmission infrastructure in Indonesia can hinder the seamless integration of large-scale offshore wind energy into national grids.
• Environmental and Navigational Concerns
  Offshore wind installations in Indonesia must navigate ecological sensitivities, fisheries impact, and maritime navigation routes, requiring comprehensive environmental assessments and stakeholder consultations.
• Permitting Delays and Regulatory Complexity
  Complex and time-consuming permitting procedures in Indonesia can delay project timelines, increase costs, and reduce investor confidence in offshore wind development.
• Workforce and Skill Gaps
  A lack of trained professionals and offshore engineering talent in Indonesia may impede project delivery and operations, highlighting the need for workforce development programs.
  
  

Indonesia Offshore Wind Market Size And Forecast

The Indonesia Offshore Wind Market is expected to expand at a compound annual growth rate (CAGR) of approximately 12% to 16% from 2024 to 2030, driven by escalating project announcements, governmental backing, and technological maturation. By 2030, installed offshore wind capacity in Indonesia could surpass 8–15 GW, positioning the country as a regional leader in clean energy production.

This growth is supported by major utility-scale tenders, floating wind pilot projects, and port modernization efforts, laying the foundation for a long-term offshore energy ecosystem in Indonesia.

Future Outlook

The future of the offshore wind market in Indonesia is robust, driven by decarbonization imperatives, global investment flows, and sustained policy commitment. Offshore wind will play a central role in powering cities, electrifying industries, and potentially serving as the backbone of a green hydrogen export economy.

Over the next decade, Indonesia is poised to become a hub for offshore innovation—testing next-generation turbines, floating solutions, and co-located offshore energy platforms. Investments in grid expansion, port logistics, and workforce reskilling will be key enablers.

International collaborations, regional power sharing, and participation in global value chains will further elevate Indonesia’s presence in the offshore wind landscape. As the country balances ecological preservation with clean energy goals, offshore wind will stand as a flagship of sustainable development.

Indonesia Offshore Wind Market Segmentation

By Foundation Type:

• Fixed-Bottom Foundation
• Floating Foundation

By Component:

• Turbines
• Substructures
• Electrical Infrastructure (Subsea Cables, Substations)
• Others (Control Systems, Monitoring Equipment)

By Location Depth:

• Shallow Water (<30m)
• Transitional Water (30–60m)
• Deepwater (>60m)

By Application:

• Utility-Scale Power Generation
• Industrial Power Supply
• Green Hydrogen Production
• Offshore Hybrid Energy Systems

By End-User:

• Power Utilities
• Oil & Gas Companies
• Independent Power Producers (IPPs)
• Government Agencies

By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa
  
  

Leading Players

• Orsted
• Siemens Gamesa Renewable Energy
• Vestas Wind Systems
• General Electric (GE)
• Mitsubishi Heavy Industries
• Equinor
• Shell
• RWE Renewables
• BP
• Ocean Winds
  
  

Recent Developments

Orsted secured seabed rights in Indonesia for a 1.2 GW offshore wind project aimed at supplying power to more than 1 million households and supporting local green job creation.

Vestas announced the deployment of next-generation 15 MW turbines in an offshore wind park off the coast of Indonesia, marking a new milestone in turbine scale and efficiency.

Equinor partnered with a domestic utility in Indonesia to co-develop a floating offshore wind farm in deep waters, reinforcing the country’s innovation leadership in floating wind.

Shell launched a feasibility study for integrating offshore wind with hydrogen production facilities in Indonesia, aligning with national clean energy export ambitions.

RWE Renewables began construction of a major offshore substation and grid interconnection system for an upcoming 800 MW project in Indonesia, addressing grid bottlenecks and enhancing transmission reliability.

Other Regional Reports of Offshore Wind Market: