The Indonesia Net Zero Emission (NZE) Roadmap for the energy sector, launched by the Ministry of Energy and Mineral Resources (MEMR) in September 2022, has laid out the plan to eliminate coal-fired power as a national energy source by 2030 and achieve 87% renewable energy mix by 2060. New energy sources, such as nuclear, make up the remaining 13%. Achieving this target will require investment in renewable energy of around USD 16 billion annually, far from current levels of investment or even the stated commitments towards renewable energy investment. CPI’s most recent tracking of Indonesia power sector finance shows renewable energy finance only reached USD 3 billion per annum from 2015 to 2021, suggesting that investments must increase by more than five times to meet Indonesia’s NZE 2060 scenario. To better understand this gap, and ways to address it, CPI examines two key areas — the financing gap and the corresponding energy capacity gap — as well as opportunities to better align power sector finance with Indonesia’s NZE 2060 commitment.
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