Jakarta – The Indonesian government is targeting 100 gigawatts (GW) of clean power generation capacity by 2040, with around 75 percent of that capacity coming from renewable energy. The project is estimated to require an investment of USD 235 billion or around IDR 3,710 trillion (exchange rate of IDR 15,790 per USD), with a major focus on the development of solar, wind and geothermal energy.
This target was announced by the Head of the Indonesian Delegation to the UN Climate Change Conference (COP29), Hashim S Djojohadikusumo, at the international forum in Baku, Azerbaijan, on Thursday, November 14. Hashim said the plan is part of Indonesia’s efforts to achieve decarbonisation and significantly reduce carbon emissions.
“Indonesia has set this ambitious target to support global efforts to keep the earth’s temperature rise below 1.5 degrees Celsius. However, to realise it, cross-sector cooperation and huge investments are needed,” Hashim said.
Renewable energy commitments and implementation challenges
The Institute for Essential Services Reform (IESR) sees the government’s move as a positive signal in the energy transition towards cleaner sources. However, IESR’s Executive Director, Fabby Tumiwa, highlighted that although big targets have been set, implementation on the ground still faces many obstacles.
“The development of renewable energy capacity must be accompanied by concrete steps to reduce dependence on coal-based power plants (PLTU). If PLTU is not phased out before 2045, the ambitious emission reduction target will only be a promise without realisation,” Fabby said.
He emphasised that a significant and sustainable investment is needed to achieve the target of 100 GW of clean energy. “An investment of USD 235 billion is not a small amount. Policies that support the entry of foreign investment and strengthen the role of the private sector in renewable energy projects are needed,” Fabby said.
According to Fabby, funding sources should be directed to renewable energy projects that have proven potential to reduce carbon emissions, such as solar power plants (PLTS) and wind power plants (PLTB), and not nuclear, which takes a long time.
As part of its long-term plan, PT PLN (Persero) has strategised to develop renewable energy generation to reach 75 GW by 2040. PLN is also planning the construction of a green transmission network that will help distribute clean energy to various regions, including remote areas with great renewable energy potential, such as solar energy in Nusa Tenggara and wind in Sulawesi. (Hartatik)
Banner photo: Head of the Indonesian Delegation to the UN Climate Change Conference (COP29), Hashim S Djojohadikusumo. Screenshot/DG PPI KLH YouTube channel
