As per the estimates of the Indonesian government, to develop new renewable energy power plants an investment of $1,043 billion would be required in order to achieve the target of carbon neutrality by 2060.
The new investment would produce 707.7 GW capacity of electricity. Currently, Southeast Asian countries rely on coal for generating power.
Dadan Kusdiana, Director-General of New Renewable Energy (NRE) at the Energy and Mineral Resources (ESDM) Ministry said that most of the investment would be spent on developing new renewable energy projects.
In order to achieve carbon neutrality by 2060, more private investment is needed in renewable energy in the country. Indonesia is the biggest exporter of thermal coal and one of the top emitters of greenhouse gases.
Only 12% of Indonesia’s energy sources are renewables, and 60% are coal. The use of RE has only reached 0.3% of the total capacity of Indonesia.
