Accelerating investments in renewables in Indonesia: drivers, risks, and opportunities

This report discusses the risks constraining renewable energy (RE) investments in Indonesia. Part of a series, which assesses barriers to the flow of capital into RE markets in emerging economies, it focuses on solar and wind energy, which are the major drivers of global RE investments. It follows an issue brief, which found five types of investment risks prevalent in emerging economies: demand, transmission and evacuation, macro, off taker (purchaser of RE), and political. This report also provides a snapshot of the political economy of renewables in Indonesia, incorporating national priorities pertaining to electricity planning and implementation; the country’s RE potential and pace of capacity addition; and a description of the key stakeholders in the RE ecosystem. It provides recommendations to leverage RE investments in Indonesia, which could be considered by policymakers while planning interventions.