Indonesia needs USD 1 trillion for energy transition in 2060, global investment needed

Jakarta – Indonesia urgently needs global investment to accelerate the country’s energy transition, mining analysts said. The Ministry of Investment said investment in new and renewable energy (NRE) and energy transition in Indonesia until 2060 requires funding of up to USD 1 trillion or around IDR 14,889 trillion. In 2021, the investment was recorded to have increased by 25 per cent.

ReforMiner Executive Director Komaidi Notonegoro said capital from global investors has facilitated the rapid development of renewable energy infrastructure and encouraged technology transfer that has enabled Indonesia to capitalise on its vast renewable energy potential.

He said that only relying on domestic investments will not be optimal because it still has to be divided into all sectors. Notonegoro said collaboration with global investors is better and more optimal.

“If investment comes … employment will also be enjoyed by domestic workers. Then, economic added value will also be created in the country,” Notonegoro said.

Investments support the government’s efforts to diversify the country’s energy mix and mitigate climate change. As Indonesia strives to reduce its dependence on fossil fuels and embrace renewable energy sources, strategic partnerships with international investors drive the country towards a more sustainable future. (Hartatik)

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