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 and cleantech news coverage? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.

Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

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.


You May Also Like

Clean Transport

The summit season has kicked off big time in Southeast Asia, and green vehicles are in the spotlight. Local police are even riding electric...

Clean Transport

During the G20 Summit in Bali, the Indonesia government provided Zero Motorcycles as tactical electric vehicles for its security forces. As part of Zero...

Clean Transport

Indonesia is hoping to reach zero emissions by 2060 and reduce its carbon footprint by 29% by 2030. One way they plan to tackle...


Australian startup PowerWells has won a $75,000 (USD) CISCO Regional First Runner-Up Prize in the Asia Pacific, Japan and China (APJC) region. The company’s...

Copyright © 2022 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.