The Indonesian Chamber of Commerce and Industry highlighted Indonesia’s significant potential in the green and renewable energy sector, noting that it has the second-largest nature-based solutions capacity in the world after Brazil, at up to 1.5 GtCO2 per year.
JAKARTA, July 17 (Xinhua) — Indonesia is seeking investors to finance green and renewable energy projects to support the country’s agenda in combating climate change and promoting sustainable economic growth.
The country’s Coordinating Minister for Economic Affairs Airlangga Hartarto said at a recent event that Indonesia expects green investment funding of around 281 billion U.S. dollars as part of the total 1.1 trillion dollars needed to achieve net-zero emissions by 2060.
As part of efforts to attract foreign investors, the Indonesian government has offered 21 sustainable green infrastructure projects, 19 of which are related to pipeline projects. Hartarto noted that two projects ready for investment are the Green Refinery Cilacap in Cilacap and the Green Refinery Plaju in South Sumatra, each valued at 860 million dollars.
“Investment in green and renewable energy will provide support for clean energy and sustainable infrastructures in Indonesia,” Hartarto said in Jakarta.
In addition to pipeline projects, Indonesia is also focusing on constructing solar power plants nationwide to reduce dependence on finite and polluting fossil fuels.
Meanwhile, Indonesia’s Ministry of Energy and Mineral Resources has offered 12 geothermal power plant development projects to investors, requiring a total investment of up to 2.16 billion dollars. The capacity of these projects ranges from 15 to 60 megawatts.
The ministry’s Director General of New Renewable Energy and Energy Conservation Eniya Listiani Dewi said that the government is currently collecting data on all existing potentials in the country.
“Geothermal and hydropower are open to all investments,” Dewi said in Jakarta on Tuesday.
Separately, Deputy for Infrastructure and Transportation Coordination of the Coordinating Ministry for Maritime Affairs and Investment Rachmat Kaimuddin said that Indonesia possesses rich mineral resources, key materials used in downstream industries for renewable energy and the production of energy transition technologies.
“By utilizing our renewable resources, our goal is not only to meet emission targets but also to make Indonesia a leader in green and renewable energy technology. To realize this vision, the government bears a great responsibility to attract investments that match Indonesia’s economic potential and climate commitments,” Kaimuddin said in a press release.
Meanwhile, the Indonesian Chamber of Commerce and Industry highlighted Indonesia’s significant potential in the green and renewable energy sector, noting that it has the second-largest nature-based solutions capacity in the world after Brazil, at up to 1.5 GtCO2 per year.
“Indonesia has renewable energy resources totaling 3,686 GW (gigawatts), consisting of 3,295 GW of solar power, 95 GW of hydropower, 57 GW of bioenergy, 155 GW of wind power, 24 GW of geothermal energy, and 60 GW of ocean energy. However, only 12.54 MW (megawatts) of this capacity has been utilized,” the chamber’s Vice Chairman for Maritime Affairs, Investment, and Foreign Affairs Shinta Widjaja Kamdani said in a statement.
“By developing this potential, Indonesia could have more than 1.1 terawatts of renewable energy capacity and could become a leader in the global transition to renewable energy,” she added.■