- Indonesia targets 75 GW of renewable energy in the next 15 years, focusing on solar, hydro, geothermal, and nuclear power, to achieve carbon neutrality by 2060.
- State utility PLN plans to build a 70,000-km green transmission line to support the integration of renewables, while government initiatives also include reforesting 12.7 million hectares of degraded forests.
- Foreign investment opportunities in renewables and carbon offset projects are essential to Indonesia’s green transition, with interest from initiatives like Jeff Bezos’s Earth Fund.
Climate envoy Hashim Djojohadikusumo said Indonesia plans to offer international investors 75 gigawatts (GW) of renewable energy projects over the next 15 years. He announced the initiative at the COP29 summit, aligning with President Prabowo Subianto’s commitment to clean energy development.
Indonesia is one of the largest greenhouse gas emitters. To achieve carbon neutrality by 2060, the government intends to phase out coal-fired power plants and boost renewable energy sources like solar, hydro, geothermal, and nuclear power.
“There will be 100 GW of new energy developed, and 75% will come from renewable sources,” Hashim said during his speech. However, he did not explain how the government plans to achieve the remaining 25 GW of energy.
Indonesia’s power capacity currently exceeds 90 GW, over half of which is generated from coal, while renewables account for less than 15%. Given the country’s vulnerability to earthquakes, the introduction of nuclear power may face opposition.
Perusahaan Listrik Negara (PLN), the state-owned utility, plans to build a 70,000-kilometer green transmission line to support the renewable energy transition. Darmawan Prasodjo, PLN’s CEO, described this network as critical to integrating clean energy into the country’s grid.
Indonesia’s significant renewable potential has yet to fully materialise due to policies favouring coal through subsidies, discouraging investors. However, the government remains determined to push ahead with clean energy projects.
Alongside renewable energy expansion, Indonesia will offer carbon offset projects that could remove hundreds of millions of metric tons of carbon emissions. Hashim did not provide specific details about these projects.
The government also plans to restore 12.7 million hectares of severely degraded forests, relying on foreign funding. Hashim mentioned that the Bezos Earth Fund, a $10 billion green initiative led by Jeff Bezos, has already shown interest in supporting the reforestation efforts.
These initiatives reflect Indonesia’s strategy of balancing economic growth with environmental responsibility. The new administration is accelerating its shift to clean energy, focusing on building a sustainable future.
Indonesia has frequently promoted its renewable potential, but slow development and a lack of favourable policies have hindered progress. The new government’s commitment to scaling renewables signals a shift in focus toward green growth.
Indonesia hopes to position itself as a global leader in climate action by combining renewable energy projects, carbon offsets, and reforestation. The country will need foreign investment and policy changes to meet its ambitious climate goals.
To move forward, Indonesia must create attractive conditions for investors and ensure policies support the transition from coal to clean energy. With a clear focus on renewable growth, the country could make significant strides toward its 2060 carbon neutrality goal, transforming its energy landscape.