Jakarta — Indonesia’s energy transition from fossil fuels to clean energy requires a significant financial investment. Experts believe that strengthening energy security requires large investments as a driver of new economic growth, ranging from increasing gross domestic product to creating a carbon economy ecosystem.
Deputy Chairman of the Indonesian People’s Consultative Assembly Eddy Soeparno, on Monday, 29 December, in a Media Discussion entitled End of Year Reflections 2025; Solutions to the Energy Paradox Realising Sovereignty, Saving the Environment, said that the transition to new and renewable energy requires an injection of funds of around US$19 billion or the equivalent of Rp318.93 trillion annually for the next decade.
According to Eddy, this large investment has the potential to create around 1.7 million new jobs while boosting the national GDP. Furthermore, clean energy investment also opens up opportunities for the development of a carbon economy, which now has a legal framework through Presidential Regulation No. 110 of 2025.
“This investment is not only about clean electricity, but also encourages the creation of a new economy, including a carbon economy, which we can develop rapidly,” he said.
Eddy said that PLN’s plan to increase new power plant capacity by 70 gigawatts, with around 52 gigawatts of that coming from renewable energy, is “a great opportunity to develop renewable energy, create green jobs, and build a national manufacturing base that will have a broad impact on the economy.”
Funding support has been secured from Danantara Investment Management (DIM), which has signed a head of agreement with PT PLN (Persero) to accelerate the development of renewable energy projects in Indonesia. This collaboration opens up financing opportunities for green power plant projects developed through PLN subsidiaries, namely PLN Nusantara Renewables and PLN Indonesia Power Renewables.
Chief Investment Officer of Danantara Indonesia, Pandu Sjahrir, considers this collaboration strategic in responding to climate change challenges while strengthening national energy self-sufficiency. He emphasised that investment in the renewable energy sector is not only about financial gain, but also long-term sustainability.
“The signing of this HoA marks the beginning of exploring significant strategic investment needs, promoting the development of reliable renewable energy, and strengthening Indonesia’s position in green transformation and energy self-sufficiency,” said Pandu.
According to Pandu, the renewable energy sector has significant multiplier effects, ranging from environmental protection, improved public health, strengthened energy security, to the creation of green jobs. With a combination of policies, a clear roadmap, and financial support, the energy transition is considered not merely a fiscal burden but a great opportunity to drive Indonesia’s low-carbon economy in the future. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)
