Indonesia Potentially Gets US$600 Billion Investment from green infrastructure

Green Energy

Bank Indonesia said that Indonesia has the potential to get a super large investment fund of up to US$600 billion from green infrastructure. This is because the natural potential of Indonesia’s renewable energy is very large.

Senior Deputy Governor of Bank Indonesia (BI) Destry Damayanti said that one of these potentials comes from green infrastructure, especially electric vehicles.

Moreover, she said, currently it is very difficult to get electric vehicles because production is still limited, but the demand is very high. That way, she sees Indonesia being able to reap an investment of US$600 billion from electric vehicles.

“Other potential also comes from the green infrastructure sector with investment potential estimated at more than US$600 billion in electric vehicles which are projected to require an investment of at least US$35 billion in the next 5-10 years to build lithium batteries and an electric vehicle ecosystem,” Destry said in a statement. Mandiri Sustainability Forum 2022, Wednesday (2/11/2022).

In addition, Destry, citing data from the Coordinating Ministry for Maritime Affairs and Fisheries, said that 4,400 rivers in Indonesia are capable of providing up to 24 gigawatts of electricity, wind power with a potential of up to 100 gigawatts, geothermal power with a potential of 23 points up to 76 gigawatts and also potential applications for solar power plants.

Meanwhile, Destry, citing data from the Ministry of National Development Planning/Bappenas, said that the transition to a green economy also provides an opportunity for Indonesia to create 1.8 million green jobs in 2030.

Furthermore, the acceleration of Indonesia’s energy transition is also fully supported by Pertamina by developing green energy.

An environmental health expert from the University of Indonesia, Professor Budi Haryanto, stated that PT Pertamina (Persero)’s efforts to develop green energy will affect environmental health, including reducing global warming and climate change.

“It must always be supported because the development of green energy will have a positive impact on health and the environment,” he said in Jakarta, Tuesday.

Therefore, he hopes Pertamina is consistent in developing green energy because it will reduce emissions to a minimum.

“Thus, it also reduces global warming and climate change,” he said.

Sartono Hutomo, a member of Commission VII DPR RI, expressed similar support because the world is currently competing to transform through the use of clean energy.

He gave an example of Pertamina’s green refinery, as a national strategic program, its production level must also continue to be optimized so that the biodiesel development target can continue up to B100.

On the other hand, he continued, the government must be able to develop the domestic market to use green energy, so that domestic demand will be large, both in the form of biodiesel and biofuels such as HVO/ Hydrotreated Vegetable Oil which is currently being developed by Pertamina.

According to him, the use of clean energy is a must. Indonesia has reached a “point of no return” in climate change and energy security so new and renewable energy is a concrete solution.