JakartaGlobe-Sept 21
The Indonesian government is trying to bring in more investment into the green sector with incentives and less red tape, as the coal-reliant country seeks to transition to renewables. Indonesia is aiming for 23 percent renewables in its energy mix by 2025. The country has also set a goal to achieve net-zero emissions by 2060 or sooner. Southeast Asia’s biggest country has a large renewable energy potential, which the government reported to reach a whopping 3,686 gigawatt. But for Indonesia, shifting to renewables would be no easy feat. In addition to the heavy coal reliance, energy transition requires substantial investment. The government also projected that it would need $1,108 billion in investment to achieve net zero by 2060. In November 2020, President Joko “Jokowi” Widodo enacted the Omnibus Law on Job Creation which streamlines Indonesia’s complex regulatory environment. According to the Investment Coordinating Board (BKPM), the Omnibus Law becomes a linchpin to Indonesia’s strategy in enticing investors, including those involved in green industries. In 2021, Indonesia’s investment realization in the energy sector reached $28.2 billion, of which only $1.4 billion came from the renewables sub-sector. Oil and gas accounted for most of last year’s energy sector investment realization, amounting to $15.9 billion, data showed. This year, the government is aiming for $32.6 billion in realized energy sector investment. About $3 billion will come from investments in renewables. Read more at: https://jakartaglobe.id/business/indonesia-offers-incentives-cuts-red-tape-for-green-investment
