Connect with us

Hi, what are you looking for?


Policy & Politics

Indonesia Plans Incentives To Boost Renewable Energy

Indonesia is planning to introduce incentives aimed at attracting investment in its renewable energy sector.

The country’s Minister of Energy and Mineral Resources recently announced that the government is mulling several incentives to bring large investments into its renewable energy sector, one of which could reduce the import duty on equipment used in the development of renewable energy projects. The planned incentives would play a critical role in Indonesia’s endeavour to boost the share of renewable energy sources in the total energy mix to 19% by 2019 and to 25% by 2025, up from its current share of renewable energy sources of between 5% and 6%.

Renewable energy potential (PDF) in Indonesia remains largely untapped, and investment from national and international companies is critical to turning this situation around. According to Perusahaan Listrik Negara (PLN), the government-owned electricity distribution company in Indonesia, the country has 75 GW of hydro power potential, 27.5 GW of geothermal energy potential, 50 GW of biomass energy potential, and 9 GW of wind energy potential.

However, over 90% of the potential in almost all renewable energy technologies remained untapped.

The government is nevertheless taking significant measures to make the renewable energy sector more attractive for investors, indicating that the budget for renewable energy development could be increased five-fold next year to around $800 million.

Policy guidance by the government is slowly reaping results. Construction of the country’s first large-scale wind energy project has already started, with the 50 MW project being constructed by a joint venture between an Indonesian and American company, and is expected to be commissioned in 2019. The government was also reported to be working to have 4 to 5 GW of geothermal capacity operational by the end of this year.

Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

Smiti works as a senior solar engineer at a reputed engineering and management consultancy. She has conducted due diligence of several solar PV projects in India and Southeast Asia. She has keen interest in renewable energy, green buildings, environmental sustainability, and biofuels. She currently resides in New Delhi, India.


#1 most loved electric vehicle, solar energy, and battery news & analysis site in the world.


Support our work today!


Power CleanTechnica: $3/Month

Tesla News Solar News EV News Data Reports


EV Sales Charts, Graphs, & Stats


Our Electric Car Driver Report

30 Electric Car Benefits

Tesla Model 3 Video

Renewable Energy 101 In Depth

solar power facts

Tesla News

EV Reviews

Home Efficiency

You May Also Like

Clean Power

Sunseap Group plans to build the world's largest floating solar farm in Indonesia.


Hyundai and Grab, which provides taxis and rental cars in markets in Southeast Asia, are in the mood to electrify. Down in Southeast Asia,...

Clean Power

System Operator CEOs and Energy Leaders from Around the World Discussed Paths to Net-Zero Emissions During Launch Event for Global Power System Transformation Consortium

Clean Power

So far, more than 189 countries ratified or otherwise joined the Paris Climate Agreement, representing more than 81% of global greenhouse gas emissions and 93% once the United...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.