Indonesia Seeks Major Investments in Green and Renewable Energy Projects: As it Aims to Archive it Goals on Green Ecosystem

Indonesia Seeks Major Investments in Green and Renewable Energy Projects: As it Aims to Archive it Goals on Green Ecosystem

Indonesia is actively seeking investors to finance green and renewable energy projects to combat climate change and promote sustainable economic growth. The country’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized the need for around $281 billion in green investment funding, contributing to the $1.1 trillion required to achieve net-zero emissions by 2060.

Highlighting the nation’s significant potential, the Indonesian Chamber of Commerce and Industry noted that Indonesia has the second-largest nature-based solutions capacity in the world, capable of absorbing up to 1.5 GtCO2 per year, second only to Brazil. This potential includes 3,686 GW of renewable energy resources, with vast capacities in solar, hydropower, bioenergy, wind power, geothermal energy, and ocean energy. However, only 12.54 MW of this capacity has been utilized so far.

To attract foreign investors, the Indonesian government has proposed 21 sustainable green infrastructure projects, including 19 pipeline projects. Notable among these are the Green Refinery Cilacap in Cilacap and the Green Refinery Plaju in South Sumatra, each valued at $860 million. Additionally, the Ministry of Energy and Mineral Resources has offered 12 geothermal power plant development projects requiring up to $2.16 billion in investments, with capacities ranging from 15 to 60 megawatts.

Green Refinery Proposed by the Indonesia government 
Image credit: F&L Asia

The government is also focusing on constructing solar power plants nationwide to reduce reliance on fossil fuels. Eniya Listiani Dewi, Director General of New Renewable Energy and Energy Conservation, mentioned that the government is collecting data on all existing potentials in the country. Geothermal and hydropower sectors are open to all investments.

Deputy for Infrastructure and Transportation Coordination of the Coordinating Ministry for Maritime Affairs and Investment, Rachmat Kaimuddin, highlighted Indonesia’s rich mineral resources, crucial for renewable energy and energy transition technologies. He stressed the government’s responsibility to attract investments matching Indonesia’s economic potential and climate commitments, aiming to position the country as a leader in green and renewable energy technology.

By leveraging its vast renewable energy resources, Indonesia aims not only to meet its emission targets but also to become a global leader in renewable energy capacity and technology.