Maluku, Indonesia, August 21, 2025 – Maluku has everything it needs to become a center for renewable energy: abundant sunshine, strong coastal winds, and abundant geothermal reserves. According to the Maluku Province Long-Term Development Plan (RPJPD) 2025-2045, the province’s renewable energy potential includes 94 GW of solar power, 23 GW of wind power, more than 1 GW of geothermal energy, and 0.21 GW of hydroelectric power. With this capital, Maluku is targeting 27.3% renewable energy by 2025 and an increase to 43.2% by 2050. 

Limited infrastructure, variable energy supplies, lack of human resource capacity, and funding constraints remain major challenges in realizing a clean energy transition in this province.  

The Maluku Regional Financial and Asset Management Agency (BPKAD) is one of the regional stakeholders contributing to the energy transition. However, BPKAD acknowledges the challenges in designing and implementing renewable energy projects at the regional level that are financially viable or bankable. Projects must not only ensure a return on investment but also deliver social, economic, and environmental benefits. 

Risk reduction instruments and innovative financing mechanisms such as blended finance, small-scale Public-Private Partnership (PPP) schemes, and thematic bonds are innovative ways to bridge these barriers. 

Through the Renewable Energy-Accelerated Transition in Indonesia (RE-ACT) project funded by the New Zealand Government, and in collaboration with the New Zealand–Maluku Access to Renewable Energy Support (NZMATES) program, GGGI organized a training session on “Capacity Building on Alternative Financing Instruments and Risk Reduction for Renewable Energy Development at the Regional Level” in Ambon, Maluku. The two-day training was attended by 31 participants from local government agencies, financial institutions, and local institutions. 

Snapshots of participants during the “Capacity Building on Alternative Financing Instruments and Risk Reduction for Renewable Energy Development at the Regional Level” activity.

According to Neil Andrew Saimima, representative of BPKAD, the training provided a deeper understanding of how to identify risks from the early stages of renewable energy project planning. “After the training, I have a clearer understanding of technical risks such as energy supply variability. For example, how solar power plants depend on sunlight intensity, wind power plants depend on wind speed, and also regarding infrastructure limitations and potential delays in the construction phase,” he added. 

For many participants, this training also provided new insights into alternative funding options. One participant stated, “I just learned that there are many alternative funding schemes, such as green bonds and RBF [Results-Based Financing], which I did not know about before.”  

After the training, participants were invited to put their ideas into concrete terms: how the learning outcomes could be applied in their respective institutions. The discussion resulted in a shared commitment to strengthen coordination between institutions through existing coordination forums in the region, explore the use of small-scale PPP schemes and blended finance, and improve local skills in operating and maintaining renewable energy through collaboration with universities and polytechnics.  

Another equally important commitment from local government representatives was to integrate risk mapping into Regional Development Plans and ensure gender equality and social inclusion in renewable energy projects. 

The results of these activities strengthen Maluku’s readiness to accelerate the implementation of renewable energy in the province, while contributing to national climate targets and strengthening local energy security. Maluku is no longer known only for its energy potential, but also for its human resource capacity to realize a clean, inclusive, and sustainable energy future.