Achieving a clean energy transition in Indonesia will require substantial scale-up in finance and investments for renewable energy and energy efficiency. Indonesia has set ambitious targets to increase the share of renewables in its energy mix as well as to achieve a 1% annual reduction in its energy intensity. Private sector engagement can help make significant progress in meeting these clean energy targets by 2025 and beyond. To facilitate and accelerate this engagement, an enabling policy environment is necessary to strengthen domestic conditions for clean energy finance and investments.
A policy questionnaire was shared with Indonesia earlier this year with questions aimed at gathering factual and policy information for drafting of the Clean Energy Finance and Investment Review. The questionnaire contained 270 questions, which were answered by ten government institutions (including Ministry of Energy and Mineral Resources, Ministry of Finance and finance services authority OJK) as well as PLN (the national electricity utility). Findings from the questionnaire are summarised below.