Jakarta — The government has reaffirmed its commitment to strengthening national energy security by injecting significant funds into the clean energy sector. In the 2026 State Budget Bill, an allocation of Rp37.5 trillion has been set aside specifically for the development of new and renewable energy (NRE) and rural electrification programs.
Finance Minister Sri Mulyani Indrawati explained that the funds are part of a total energy security expenditure of Rp402.4 trillion. “This is for NRE, which is quite significant at Rp37.5 trillion,” Sri Mulyani said at a press conference on Friday, August 15.
According to the Ministry of Finance, next year’s energy security allocation includes tax incentives in the energy sector of Rp16.7 trillion, renewable energy development of Rp37.5 trillion, energy infrastructure of Rp4.5 trillion, rural electrification programs of Rp5 trillion, and other support of Rp600 billion.
The funds will be used to build 63 renewable energy power plants, provide 14,000 fuel-to-gas converter kits, and reform energy subsidy policies based on the National Socioeconomic Data System (DTSEN) to ensure more targeted distribution.
President Prabowo Subianto, in his 2026 Budget Speech, emphasised Indonesia’s ambitious goal of transitioning to clean energy. He aims to achieve 100 per cent renewable energy-based power generation by 2035 at the latest.
“We must achieve 100 per cent electricity generation from new and renewable energy within 10 years or sooner. Indonesia can become a pioneer in clean energy worldwide,” said Prabowo.
This step is expected to not only strengthen national energy security but also pave the way for Indonesia to become a major player in the global energy transition, particularly through the development of solar, hydro, geothermal, and bioenergy. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)
