With an ambitious goal to achieve carbon neutrality by 2060, Indonesia offers attractive investment opportunities for global investors, particularly in the renewable energy sector. At the COP29 summit in Baku, Azerbaijan, the Indonesian government officially announced plans to open up investment opportunities for up to 75 gigawatts over the next 15 years.
This commitment, delivered by the President's Special Envoy to the COP29 Summit, Hashim Djojohadikusumo, reflects the vision of Indonesia's newly inaugurated President, Prabowo Subianto.
Speaking in Baku, Hashim outlined Indonesia's ambitious plan to increase its energy capacity to 100 gigawatts within the next 15 years. Of this additional capacity, 75 gigawatts will come from renewable sources, including solar, hydro, geothermal and nuclear power.
Currently, Indonesia has more than 90 gigawatts of installed capacity, with coal still dominating and less than 15 percent coming from renewable sources. To support the development of renewable energy, the state electricity company, PLN, is designing an environmentally friendly 70,000-kilometer transmission network.
Supporting SOEs in Green Initiatives
Hashim also emphasized the government's full support for state-owned enterprises (SOEs) in accelerating the energy transition.
In line with national energy transition goals, PT Pertamina (Persero) is committed to sustainable business development with a focus on low-carbon energy.
At the Conference of the Parties (COP29), Pertamina New and Renewable Energy (PNRE) presented its carbon business development strategy. PNRE's President Director, John Anis, outlined the company's two main approaches to carbon trading: developing technology-based solutions, such as renewable energy, and implementing environmental conservation projects, including mangrove restoration. With its abundant natural resources, Indonesia has the potential to become a major player in the global carbon market.
Anis is confident that the company can capture significant business opportunities in the future, given Indonesia's natural resource potential and the growing global demand for carbon credits.
