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5 Facts on Financing Indonesia’s Renewable Energy (RE) Mix Target by 2025

1. The Renewable Energy (RE) mix target by 2025 is 23%

Indonesia requires a large budget of up to USD 167 billion to encourage the use of renewable energy by 2050 as well as to support the commitment to achieve the Nationally Determined Contribution (NDC) targets by 2030. (Source: Renewable Energy Investment Funding Mechanism Report by Bappenas and GGGI)

2. Potential utilization of RE is 417.8 GW

According to a study by the Ministry of Energy and Mineral Resources, renewable energy serves as a significant source for our national energy security. Renewable energy potential that we can utilize amounts to 417.8 GW, which comes from:

  • Ocean at 17.9 GW
  • Geothermal at 23.9 GW
  • Bioenergy at 32.6 GW
  • Wind power at 60.6 GW
  • Hydro power at 75 GW
  • Solar power at 207.8 GW

3. Indonesia is the most promising country in Southeast Asia

Indonesia is a country with high economic growth compared to several other countries in Southeast Asia. It has great opportunities to encourage the development of renewable energy investment, and is also included in the list of 40 attractive countries for renewable energy investment. (Source: RECAI Index)

4. Green finance facilities as alternative sources of funding

Currently, green finance facilities are being used as alternative sources of funding for low-carbon investment, including investment in renewable energy development and construction.

5. The launch of green bonds as an effort to mobilize international funding for climate projects in Indonesia

The Government of Indonesia has issued regulations on green bonds in 2017, followed by green bonds in the amount of USD 3 billion launched in 2018.