Indonesia sets renewable energy investment worth US$20 billion until 2024

Jakarta (Indonesia Window) – The Indonesian government has set investment in the renewable energy and energy conservation sector worth US$20 billion until 2024.

A spokesperson of the Indonesian Ministry of Energy and Mineral Resources, Agung Pribadi, explained that the investment value was required to reach the national renewable energy mix target by 23 percent by 2025.

“If the US$20 billion target is realized, it will open new jobs while at the same time meeting the target of energy mix,” Agung said here on Wednesday (Feb 19).

The renewable energy sector value is expected to be US$2 billion in 2020, US$4 billion in 2021, US$5 billion in 2022, US$4 billion in 2023, and US$5 billion in 2025.

“We estimate the values will able to absorb labour more than those in previous years,” Agung added.

The government is committed to increasing the renewable energy power plant capacity to 9,051 megawatts (MW) in five years, with details of 687 MW in 2020, 1,001 MW (2021), 1,922 MW (2022), 1,778 MW (2023) and 3,664 MW in 2024.

According to Agung, the electrification in remote areas is still the main focus in the renewable energy development program.

“Local potentials can be utilized for power generations with affordable prices, such as micro hydro, solar, biogas, and biomass,” Agung said.

Other efforts made by the Ministry of Energy and Mineral Resources to increase investment and create extensive employment opportunities in the sector are simplifying regulations, utilizing ex-mining lands, and implementing biodiesel programs.

Reporting by Indonesia Window