The Net Zero Alignment of Indonesia’s Power Sector Finance

The report analyzes Indonesia's power sector finance from 2015 to 2021, revealing a significant gap between current renewable energy investment and the USD 16 billion annually required for the NZE 2060 scenario. It highlights a projected annual financing gap of USD 13 billion for renewable generation, particularly in solar and hydro, and recommends policy reforms to divest from fossil fuels and scale up renewable energy infrastructure.

• Indonesia's NZE 2060 roadmap requires an annual investment of approximately USD 16 billion in renewable energy, but actual renewable energy finance averaged only USD 3 billion per annum between 2015 and 2021.
• Total tracked finance for the power sector from 2015 to 2021 was USD 35.6 billion (averaging USD 5 billion annually), with renewable energy accounting for 58% of this total.
• There is a projected annual financing gap of USD 13 billion for renewable energy generation, with solar and hydropower each representing a gap of USD 4.6 billion per year.
• The NZE scenario requires a massive increase in solar capacity to 398 GW by 2060, necessitating an annual growth of 10,196 MW, compared to the 30 MW annual average growth observed from 2010 to 2021.
• The Just Energy Transition Partnership (JETP) aims to mobilize at least USD 10 billion in public finance from the International Partners Group and USD 10 billion in private capital via the Glasgow Financial Alliance for Net Zero.

APA

Climate Policy Initiative (2023). The Net Zero Alignment of Indonesia’s Power Sector Finance. https://www.climatepolicyinitiative.org/publication/the-net-zero-alignment-of-indonesias-power-sector-finance/

Chicago

Climate Policy Initiative. The Net Zero Alignment of Indonesia’s Power Sector Finance. 2023. https://www.climatepolicyinitiative.org/publication/the-net-zero-alignment-of-indonesias-power-sector-finance/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=The Net Zero Alignment of Indonesia’s Power Sector Finance |date=14 August 2023 |url=https://www.climatepolicyinitiative.org/publication/the-net-zero-alignment-of-indonesias-power-sector-finance/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2023net, author = {{Climate Policy Initiative}}, title = {{The Net Zero Alignment of Indonesia’s Power Sector Finance}}, institution = {Climate Policy Initiative}, year = {2023}, month = aug, url = {https://www.climatepolicyinitiative.org/publication/the-net-zero-alignment-of-indonesias-power-sector-finance/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }