Source: Bisnis.com | September 30, 2026

Indonesia’s green economy ambitions are still hindered by a significant gap in increasing the national new and renewable energy (NRE) mix. The massive potential within the renewable energy sector still faces challenges regarding revenue certainty, grid infrastructure, energy storage, and financing viability.

National Energy Council (DEN) member Satya Widya Yudha stated that increasing the national NRE mix is ​​a foundational element of Indonesia’s energy transition strategy toward a green economy.

Satya noted that the national energy strategy must align with three key agendas: energy transition, achieving economic growth, and the goal of becoming a developed nation by 2045.

According to him, these three agendas have been integrated into the National Energy Policy (KEN). The NRE mix target serves as a crucial instrument to ensure economic growth continues while simultaneously curbing emissions.

“In general, there are several equally important elements in our national energy policy strategy. We are transitioning, we are pursuing growth, and we must succeed in becoming a developed nation by 2045,” Satya said during the Green Economy 2045 National Seminar in Jakarta on Tuesday (September 29, 2026).

Under the KEN—stipulated in Government Regulation (PP) No. 40/2025—Indonesia targets an NRE mix of approximately 19%–23% by 2030, rising to 70%–72% by 2060. These targets align with Indonesia’s commitment to achieving net-zero emissions (NZE) by 2060.

Satya added that the energy transition strategy cannot be separated from the economic growth agenda. The government targets economic growth of up to 8% by 2029, requiring all economic sectors to boost their performance. According to Satya, increased economic activity will directly generate additional demand for energy. Therefore, the National Energy Council (DEN) must ensure that this rise in demand is matched by a readiness in supply.

By way of illustration, Satya noted that Indonesia’s electricity demand could reach approximately 770 terawatt-hours (TWh) by 2030 if economic growth hits 6%.

“This demonstrates that the green economy strategy is not solely about reducing emissions, but also about how Indonesia provides sufficient energy to sustain economic expansion,” Satya said.

Meanwhile, Rudy Salahuddin, Principal Secretary of the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM), stated that Indonesia possesses immense potential for new and renewable energy (NRE), yet its utilization remains relatively low to date.

Based on data updated by the Ministry of Energy and Mineral Resources (ESDM), the national potential for New and Renewable Energy (NRE) stands at approximately 3,687 gigawatts (GW), with solar power accounting for about 3,294 GW. However, the utilized NRE capacity is currently only around 16.33 GW, representing less than 0.5% of the total potential.

“Consequently, there is still immense room for investment—whether in power plants, grids, energy storage, or supporting industries,” said Rudy.

According to him, the challenge is compounded by the fact that the energy transition involves more than just building NRE power plants; it also requires the provision of clean energy that is reliable and affordable to meet industrial needs.

This is crucial because the availability of clean energy will determine Indonesia’s ability to attract investment in future industries—ranging from electric vehicles, batteries, green metals, and advanced materials to data centers and the digital economy.

Rudy noted that the strategic direction for developing the national electricity system has effectively opened up significant opportunities to accelerate the energy transition.

Under the 2025–2034 Electricity Supply Business Plan (RUPTL), Indonesia requires an additional 69.5 GW of generation and storage capacity.

Of this requirement, 42.6 GW (61%) is to come from NRE, 10.3 GW (15%) from energy storage, and 16.6 GW (24%) from fossil-fuel power plants. Solar power plants (PLTS) represent the largest source of additional NRE capacity, contributing 17.1 GW.

Implementation of the RUPTL is projected to unlock investment opportunities worth approximately IDR 2,133.7 trillion, including around IDR 1,341.8 trillion for NRE development through Independent Power Producer (IPP) schemes.

Rudy emphasized that accelerating the energy transition is increasingly vital, as clean energy will serve as the foundation for Indonesia’s green economic development. He explained that a reliable and affordable supply of clean energy could expand investment opportunities across sectors ranging from electric vehicles, green metals, and advanced materials to low-carbon chemicals and fuels—such as hydrogen, sustainable aviation fuel (SAF), and biofuels.

This need is also increasingly relevant to the growth of the digital economy. According to him, the availability of clean electricity is a crucial factor in attracting high-quality digital investments and the development of data centers.

“With a cleaner energy foundation, Indonesia can pave the way for future industries such as green ammonia, CCS or CCUS, carbon markets, and the circular economy,” he said.