Clean Electricity Realization, Indonesia Needs US$1.177 Billion Investment


In the context of building a power plant sourced from new and renewable energy, the government calculates an investment requirement of US$1.177 billion. The planned power plant is predicted to have a capacity of 587 GW by 2060.

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said that to achieve the target of EBT and carbon neutrality in Indonesia, the government will push through fiscal support, regulations, and so on.

“We offer good returns on investments to convince investors,” he said at the 2022 Mandiri Investment Forum event, Wednesday (9/2).

The investment value of the renewable energy power plant, if detailed, is as follows, for construction of US$1.042 trillion or equivalent to Rp. 14.94 thousand trillion and transmission of US$135 billion or equivalent to Rp. 1.93 thousand trillion.

According to him, the Indonesian government is currently preparing a presidential regulation that will be used as a reference for the basic tariff for renewable energy. The goal is to attract investors to invest in this sector.

He added that the government will continue to support the realization of this renewable energy power plant, both physical support, regulation, and other supports.

Related to the recently issued regulation is the regulation of the Minister of Energy and Mineral Resources regarding solar power plants on rooftops to encourage market interest to be involved in the use of EBT.

Furthermore, related to efforts to increase the proportion of NRE in the national energy mix, Arifin and his party plan to make the procurement of goods and services.

He explained Indonesia’s EBT roadmap, the total net stun capacity is 587 GW by 2060. Solar power occupies the first position with a capacity of 361 GW. Then, followed by battery energy storage systems (BESS) of 140 GW and hydroelectric power (PLTA) of 83 GW.

Managing Director and Global Head of Environmental, Social and Governance (ESG) Aniket Shah said Indonesia has the potential to leverage existing technology to undertake decarbonization efforts if financing is available.

Aniket explained, “This is a multi-million dollar investment, investors and multinational institutions must provide the financing. This plan must be implemented through government policies and domestic and international capital.”