Indonesia to Invest $700 Bn in Renewables to Attain Net Zero Target

Indonesia is mulling over capitalising on its renewable energy potential and raising its share in the energy mix. Indonesia’s Coordinating Minister for Maritime Affairs and Investment, Luhut Pandjaitan, delivered a keynote in BNEF Summit in Bali and held that Indonesia will stand on its commitment to achieve net-zero emissions target by 2060.

Pandjaitan mentioned that net zero target is achievable as Indonesia has new and renewable energy potential of 437 GW and the government is looking to develop the clean energy sources through PT PLN (Persero), a government-owned electricity firm.

Pandjaitan further added, “Pak Darmawan (PLN President Director) mentioned and reminded me that until 2060, the potential for renewable energy investment is around $700 billion. This is a big cake, and that’s why I am very confident that Indonesia can accelerate the energy transition as there is so much potential that we can do in this country, if we manage it well.”

At the end of 2021, the South East Asian country had more than 11 GW of renewable capacity. According to IRENA, the present renewable energy capacity of Indonesia is 21 per cent in the energy mix but most come from hydro, marine and bioenergy.

The renewable push can also become a medium of international cooperation as countries around the world want to reduce carbon emissions jointly. PLN president director Darmawan Prasodjo said that the energy transition of Indonesia is necessary for the good future of the children of the country.

Prasodjo mentioned, “In this regard, PLN has decided that we have full commitment. We do it not only because there is an international agreement, not just because of a policy. We do it because we really care,” he said.

Use of gas helps in energy transition. PLN focuses on developing large-scale RE projects in Indonesia with storage and interconnection in the long run. In 2022 alone, PLN reduced some 35 million tonnes of emissions. The PLN President Director added, “We have succeeded in removing 13 GW of coal power plants in the planning phase. This means that we can avoid 1.8 billion tonnes of CO2 emissions over 25 years.”