JakartaGlobe-Jan 27
Chief Economic Affairs Minister Airlangga Hartarto said Tuesday that Indonesia had solid fundamentals to boost its green economy transformation. Indonesia aims for 31.89% reduction in greenhouse gas emissions through its nationally determined contribution (NDC) on its own. It will raise the target to 43.20%. To this end, the country will embrace three main pillars: green energy; green economy; and green job creation. “This grand ambition certainly requires a solid macroeconomic foundation for this transformation to be sustainable,” Airlangga told a seminar in Balikpapan. Indonesia’s economy grew 5.04% year-on-year in Q3 2025. Inflation also remained under control at 2.92% yoy as of Dec. 2025. Maintained credit growth of 9.3% (yoy), primarily driven by investment credit, also provides a strong foundation for economic stability and fiscal space to support strategic investments, including the development of the clean energy sector. Supported by abundant natural resources, Indonesia’s renewable energy potential stands at 3,886 gigawatts (GW), with Kalimantan contributing approximately 517 GW, dominated by solar power. To optimize this potential, the government is eyeing the construction of a green super grid spanning approximately 70,000 kilometers. Indonesia is also ramping up its biofuel policy, ramping up the mandatory palm oil content from 40% (B40) to 50% (B50). Read more at: https://jakartaglobe.id/special-updates/indonesia-boasts-strong-basis-for-green-economy-transition
