Indonesia has committed to achieving net zero emissions (NZE) by 2060 or sooner. In 2022, Indonesia agreed to the Just Energy Transition Partnership (JETP) worth USD 20 billion, one of which targets peak emissions of 290 million tons of CO2 and a renewable energy mix of 34% by 2030. This commitment reflects a major investment opportunity to accelerate the energy transition. The availability of renewable energy project data, planning, and auction information are key factors in attracting clean investment. The Institute for Essential Services Reform (IESR) encourages the availability of data on potential renewable energy projects so that it can trigger significant emission reductions. IESR Energy System Transformation Program Manager, Deon Arinaldo, said that although Indonesia's technical potential for renewable energy reaches more than 3,700 GW, its utilization, especially PLTS and PLTB, is still far from optimal.
Through its latest study, Unlocking Indonesia’s Renewable Future, IESR analyzes the potential of renewable energy projects based on current tariff regulations, such as Presidential Regulation No. 112/2022 and the availability of electricity network infrastructure such as substations and transmission. This study identifies the potential for developing renewable energy projects of up to 333 GW, which can be supplied by PLTS, PLTB and PLTM. The potential for renewable energy development consists of onshore PLTB (167 GW), ground-mounted PLTS (165.9 GW), and PLTM (0.7 GW). This figure was obtained from the results of financial simulations and private-public partnership schemes in 1,500 locations that are technically potential. Of this number, 205.9 GW or around 61% of the total financially feasible potential is indicated to have an Equity Internal Rate of Return/EIRR above 10%, indicating promising investment potential.
