Amidst various global challenges, Indonesia is prepared to embark on an energy transformation and reinforce its national green economy, leveraging its abundant and high-potential natural resources. This was stated by Deputy Minister of Trade Dyah Roro Esti Widya Putri during the ABB Formula E "Engineered to Outrun" business event in Jakarta on Friday (June 20th). “These global uncertainties demand that developing nations, including Indonesia, transition to a green economy based on renewable energy and low-carbon resources,” said Vice Minister Roro. She further detailed that Indonesia possesses significant potential in solar, wind, hydro, and bioenergy.
As part of its commitment to the Paris Agreement, Indonesia has set a carbon emissions reduction target of 31.89% by 2030, with the potential to increase to 43.2% with international support. This demonstrates that Indonesia not only cares about the environment but also views it as an opportunity to boost global competitiveness through clean technology innovation. Vice Minister Roro noted that energy transformation is integral to Indonesia’s trade strategy. The government is committed to creating an ecosystem supporting clean energy innovation by facilitating green investment and electric mobility. Policy measures such as Renewable Energy Certificates (REC) and launching the Indonesia Carbon Exchange in 2023 have provided market-based incentives for industries committed to renewable energy and carbon reduction. Moreover, Indonesia is focused on decarbonizing the transportation sector, especially by promoting low-carbon mobility such as electric vehicles. As a climate-conscious nation, Indonesia is also preparing to comply with increasingly stringent international policies, including the European Union Deforestation Regulation (EUDR) and the Carbon Border Adjustment Mechanism (CBAM) implemented by the EU and other developed nations.
