Indonesia eases renewable investment, removes local content requirements for foreign loans and grants-based NRE projects

Jakarta – To accelerate the transition to clean energy, Indonesia is taking a significant step by removing local content requirements for renewable energy projects funded through foreign loans or grants, according to the Ministry of Energy and Mineral Resources (EMR). This policy is expected to attract more foreign investment to support clean energy development in Indonesia.

The EMR Director General of New, Renewable Energy and Energy Conservation (EBTKE), Eniya Listiani Dewi, said this in an official statement Friday, May 17, at the Clean Energy Ministerial (CEM) international forum in Badung, Bali.

“Realising Indonesia’s energy transition roadmap requires a huge investment. Although the generation capacity of renewable energy (NRE) continues to increase, it still requires a lot of money to accelerate in meeting national development targets,” she said.

According to Dewi, eliminating local content requirements is a strategic step toward creating an ecosystem that supports clean energy investment. She said this policy is expected to minimise obstacles in developing NRE in Indonesia, thus accelerating the energy transition process.

In addition, Dewi emphasised that Indonesia has a very large and diverse NRE resource capital, with the potential to reach 3680 GW, which can be optimised to meet future national energy needs.

In the energy transition roadmap, Indonesia has determined that power plants will only be constructed after 2030 using renewable energy sources. It is projected that by 2060, the installed capacity of renewable energy generation will reach 350GW, with solar power plants (PLTS) increasing significantly from 2030.

“Another innovation is the commercialisation phase of aviation fuel using bioavtur J2.4 based on biodiesel, as well as the development of floating solar power plants with large capacities, such as in Cirata with a capacity of 193 MW, which is the third largest floating solar power plant in the world,” she said. (Hartatik)

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