Indonesia Power Sector Finance Dashboard (2019-2023)

Indonesia faces a significant funding gap to meet its 2030 climate targets, requiring approximately $19 billion annually. Between 2019 and 2023, investment in fossil fuel power plants was nearly double that of renewable energy, heavily driven by international private finance. While renewable energy investment is dominated by baseload sources like hydro and geothermal, variable RE such as solar and wind began growing in 2021. A critical challenge is the rise of captive fossil-fuel power plants used for nickel processing, which are exempt from certain coal-fired power plant bans.

• Indonesia has a substantial investment gap to meet its 2030 climate targets, requiring a total of $246 billion, or roughly $19 billion annually. Currently, there is a gap between the $9.1 billion in annual renewable energy (RE) finance needed and the $1.79 billion actually invested per year.
• Investment in fossil fuel (FF) power plants is nearly twice the size of investment in renewable energy. FF financing is heavily dominated by international private financial institutions, which contributed $7.2 billion (55% of total FF investment).
• Renewable energy investment is primarily concentrated in baseload technologies such as hydro and geothermal due to mature risk profiles and technology. This concentration is attributed to uncompetitive tariffs, high local content requirements, and the preferences of the state-owned electricity firm PLN.
• Despite a Presidential Regulation banning new coal-fired power plants, an exception allows the construction of captive plants for the industrial sector. This has increased demand for captive fossil-fuel power to support nickel processing and smelters in Eastern Indonesia, specifically in areas like Morowali and Weda Bay.
• Actual investment in coal was likely higher than reported data suggests, with an estimated $10.63 billion in unreported investment across 6,765 MW of coal-fired power plants (CFPPs) between 2019 and 2023.

APA

Climate Policy Initiative (2025). Indonesia Power Sector Finance Dashboard (2019-2023). https://www.climatepolicyinitiative.org/dataviz/indonesia-power-sector-finance-dashboard/

Chicago

Climate Policy Initiative. Indonesia Power Sector Finance Dashboard (2019-2023). 2025. https://www.climatepolicyinitiative.org/dataviz/indonesia-power-sector-finance-dashboard/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Indonesia Power Sector Finance Dashboard (2019-2023) |date=10 November 2025 |url=https://www.climatepolicyinitiative.org/dataviz/indonesia-power-sector-finance-dashboard/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2025indonesia, author = {{Climate Policy Initiative}}, title = {{Indonesia Power Sector Finance Dashboard (2019-2023)}}, institution = {Climate Policy Initiative}, year = {2025}, month = nov, url = {https://www.climatepolicyinitiative.org/dataviz/indonesia-power-sector-finance-dashboard/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }