Future Indonesian Diesel Generator Market: Key Dynamics, Size & Share Analysis

The Indonesian Diesel Generator Market size was valued at around USD 486.43 million in 2024 and is expected to reach USD 1,055.28 million by 2030. Along with this, the market is estimated to grow at a CAGR of around 13.70% during the forecast period, i.e., 2025-30. The major factors behind the growth of the DG market in Indonesia include the high frequency of power outages and blackouts in the country, and the government initiatives, such as diesel blending programs to achieve sustainability, which increase the affordability of diesel generators among the population and thus contribute to the growth of the market. Indonesia, the largest palm oil producer, offers this as a simultaneous fuel with diesel to be blended as a combined fuel to achieve the goal of biodiesel blending in the country. Encouragement towards adopting biodiesel through the government’s support also enhances market growth.

Top Challenges Impacting the Indonesian Diesel Generator Market Growth

High Initial & Operational Costs Hinder the Market Growth – Fluctuations in fuel prices have increased the costs of diesel in the country. For instance, as per the Global Petrol & Diesel Prices (2025), diesel currently costs about USD0.86 per liter, approx. 117% more than in 2022. It created an obstacle to the growth of the DG market. Also, the government has started reducing the subsidized rates on fuels, including diesel.

As per the World Bank report (2024), the subsidies on diesel have been set to be reduced by 50% in 2020. Ultimately, diesel prices have risen, and this has led to high operational costs for diesel generators. The maintenance costs of DGs and increased spare parts prices have also contributed to the hindrance of the market.

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Understanding the Core Segments in the Indonesian Diesel Generator Market

Indonesian Diesel Generator Market Size, Share & Industry Trends Analysis- By kVA Rating (Up to 20 kVA, 20.1 kVA to 75kVA, 75.1 kVA to 375 kVA, 375.1 kVA to 750 kVA, 750.1 kVA to 1,000 kVA, above 1,000 kVA) By Application (Stand By, Prime & Continuous Power, Peak Shaving) By End Users (Residential, Commercial, Healthcare, Government & Transport, Industrial, Equipment Rental Companies, Construction, Mining, Oil & Gas) and others

Geographical Analysis of the Indonesian Diesel Generator Market

• Java
• Sumatra
• Kalimantan
• Sulawesi
• Rest of Indonesia

Who Dominates the Indonesian Diesel Generator Market Insights on Key Industry Players?

Companies are strengthening their presence in the Indonesian Diesel Generator market by adopting strategies such as forming strategic alliances, leveraging AI, entering partnerships, pursuing mergers and acquisitions, expanding into new regions, and introducing innovative products and services.

• Caterpillar Inc.
• Cummins Inc.
• Airman Asia Sdn Bhd (AMA)
• Denyo Co., Ltd.
• YANMAR Marine International
• Kubota Corporation
• Mitsubishi Heavy Industries Ltd.
• Aggreko Ltd.
• Weichai Indonesia
• Rolls-Royce Power Systems AG (MTU)
• Atlas Copco
• Others

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