Bappenas Pushes for Further Renewable Energy Investment

Jakarta – The Ministry of National Development Planning/Bappenas remains steadfast in its commitment to advancing the transition to renewable energy as part of Indonesia's sustainable development agenda. 

In collaboration with Sustainable Energy for All (SEforALL), the Ministry has been working to boost investments in renewable energy deployment across the country. Deputy for Maritime and Natural Resources Affairs at Bappenas, Vivi Yulaswati, emphasized the urgency of more robust efforts to ensure energy transition implementation. “Indonesia must keep pushing forward. We cannot settle for business as usual. Climate change and emission reductions are game changers that can drive Indonesia’s growth,” Deputy Vivi remarked on Tuesday (5/11).

The discussions centered on Indonesia’s green energy transition, addressing critical topics such as climate change, low-carbon strategies, green financing incentives, progress toward Sustainable Development Goal (SDG) 7, and the green energy development outlook. Key issues explored included policies, risks, challenges, and investment opportunities in the sector. Infrastructure for energy transmission and distribution was highlighted as a significant hurdle, alongside the relatively high costs of renewable energy compared to fossil fuels.

Despite these challenges, Indonesia is resolute in its green energy commitment. Deputy Vivi highlighted that the transition is embedded in the 2025-2045 National Long-Term Development Plan. Achieving green energy goals, however, requires multi-stakeholder support, particularly in financing. 

“The transition to green energy demands an investment of up to USD 51.6 billion annually, sourced not only from public funds but also private sector contributions,” she explained.

The meeting brought together stakeholders from diverse sectors, including representatives from PLN, KADIN, UNOPS, UNRC, the World Bank, and both state-owned and private banks. Investors underscored the need for new governance frameworks to facilitate green financing and accelerate renewable energy adoption. They also noted the growing global demand for renewable energy, particularly from the United States, Europe, and China, further driving the urgency for Indonesia to expedite its energy transition.