IEEFA – Report Unlocking Indonesia's Renewable Energy Investment Potential

Indonesia's renewable energy investment has been stagnant for seven years, attracting only $1.5 billion in 2023, far less than its Southeast Asian neighbors. To meet its 2030 climate targets, the country needs $146 billion in renewable energy investment. Current policies and contractual requirements hinder private investment in solar and wind power. By reforming policies to create transparent procurement procedures and more favorable contractual terms, Indonesia can attract more investors and accelerate its transition to clean energy. The country has the potential to attract investors due to its large population, economic growth, and abundant renewable energy sources. However, regulatory challenges such as the mandatory partner scheme and ownership restrictions create uncertainty for potential investors. By addressing these challenges, Indonesia can increase its renewable energy capacity and meet its climate goals.