Microsoft Word - Indonesia NDC note_final.docx
Summary
The document outlines the role of business in achieving Indonesia's 2035 NDC, highlighting a USD 3.8 trillion investment opportunity. It identifies critical barriers such as regulatory uncertainty and fragmented institutional responsibilities, while proposing solutions across the power, industry, and transport sectors to align national policy with private sector readiness.
Key insights
- Indonesia's 2035 NDC presents a significant economic opportunity, with BNEF estimating a USD 3.8 trillion investment opportunity to reach net zero by 2060.
- The 2035 NDC outlines two emissions pathways: a higher emissions scenario (LCCP_H) where emissions decrease by 0.2% between 2030 and 2035 to 1,489 MtCO2e, and a lower emissions scenario (LCCP_L) where they decrease by 6.5% to 1,258 MtCO2e.
- Preliminary calculations suggest that implementing the 2035 climate targets will require a total investment of IDR 7,552.5 trillion (USD 472.6 billion).
- The Electricity Supply Business Plan for 2025-2034 (RUPTL) aims to add approximately 70 GW of new power generation capacity by 2034, with around 76% coming from new and renewable energy and energy storage.
- There is a substantial annual financing gap for Indonesia's net-zero transition; while IDR 795 trillion (~USD 50 billion) per year is required, the current gap is approximately IDR 458 trillion (~USD 30 billion) per year.
- Private sector investment is hindered by several systemic barriers, including the lack of a standardized definition for "green investment", fragmented responsibilities between government departments, and limited fiscal incentives.
- In the transport sector, Indonesia is focusing on a vertically integrated EV value chain, with EVs already reaching a 10% market share.
Cite the original document
- APA
- We Mean Business Coalition (n.d.). Microsoft Word - Indonesia NDC note_final.docx. https://www.wemeanbusinesscoalition.org/wp-content/uploads/2025/11/IBCSD-WMBC-2025-Indonesia-NDC-note.pdf
- Chicago
- We Mean Business Coalition. Microsoft Word - Indonesia NDC note_final.docx. n.d. https://www.wemeanbusinesscoalition.org/wp-content/uploads/2025/11/IBCSD-WMBC-2025-Indonesia-NDC-note.pdf.
- Wikipedia
- {{cite report |author=We Mean Business Coalition |title=Microsoft Word - Indonesia NDC note_final.docx |url=https://www.wemeanbusinesscoalition.org/wp-content/uploads/2025/11/IBCSD-WMBC-2025-Indonesia-NDC-note.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{wemeanbusinesscoalitionndmicrosoft, author = {{We Mean Business Coalition}}, title = {{Microsoft Word - Indonesia NDC note\_final.docx}}, institution = {We Mean Business Coalition}, url = {https://www.wemeanbusinesscoalition.org/wp-content/uploads/2025/11/IBCSD-WMBC-2025-Indonesia-NDC-note.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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