Jakarta, INTI - Minister of National Development Planning/Head of Bappenas, Rachmat Pambudy, emphasized the need to accelerate Indonesia's energy transition by strengthening project readiness, financing, and investment in alignment with national development priorities. He conveyed this message in his speech at Indonesia Sustainable Energy Week (ISEW) 2026 in Jakarta on Wednesday, August 19, 2026.
ISEW 2026 serves as a key platform for Indonesia-Germany energy cooperation, bringing together high-level policy dialogue with the business sector, technology utilization, and investment-oriented exchanges.
"The next phase of Indonesia's energy transition must focus on implementation. Every major energy policy must have a clear project pipeline. Every project pipeline must have a financing pathway. And every investment must contribute directly to our national development priorities," said Rachmat.
Indonesia’s Phases of Energy Transition
Currently, Indonesia is in the first phase of accelerating its energy transition by strengthening the foundation until 2029. This phase encompasses limiting the construction of new coal-fired power plants, developing renewable energy and energy storage, expanding the power grid, shifting fossil fuel subsidies to renewable energy, and formulating regulations for nuclear energy, hydrogen, and low-carbon ammonia.
The second phase, extending to 2034, will focus on accelerating the transition. Measures include the phased retirement of coal-fired power plants, the implementation of carbon capture technology in hard-to-abate sectors, the exploration of marine energy potential, and the operation of the first commercial nuclear power plant.
The third phase, running until 2039, will focus on global expansion through increased development of offshore wind power, low-carbon hydrogen and ammonia, and enhanced electrification within the industrial sector.
In the final phase in 2045, Indonesia aims to achieve technological self-reliance in the development of commercial nuclear and marine energy. These stages form part of the roadmap toward achieving net-zero emissions.
Indonesia–Germany Long-Term Partnership
Indonesia and Germany have established a long-term partnership in sustainable development, including the energy transition. Cooperation between the two nations has contributed to policy strengthening, institutional capacity building, technical assistance, and the development of multi-stakeholder dialogue.
The partnership has also yielded various studies and evidence bases, dialogue forums, technical assistance, institutional strengthening, and enhanced public understanding of the energy transition. The outcomes of this cooperation have served as inputs for policy formulation, governance reform, and the integration of the energy transition agenda into various national planning documents, including the RPJPN 2025–2045 and RPJMN 2025–2029, as well as Bappenas’s knowledge product, KOMENS.
At the implementation stage, the Indonesia–Germany partnership has supported blended financing schemes, investment readiness, and clean energy development. However, the next challenge lies in ensuring that the designed agenda is translated into concrete projects that are fully funded and operational on the ground.
Therefore, Rachmat believes that Indonesia–Germany cooperation needs to be increasingly directed toward investment and project implementation, as well as driving shared growth and realizing greener development as part of efforts to build a sustainable future.
“The energy transition is not merely part of efforts to reduce emissions. It can also serve as a new engine for industrialization, strengthen energy security, create new economic opportunities across Indonesia, and support the country’s transformation toward a 2045 that is faster, more resilient, inclusive, and sustainable,” he said.
In line with this, Germany’s Federal Minister for Economic Cooperation and Development, Reem Alabali-Radovan, affirmed the German government's commitment to continuing its support for the development of investments oriented toward environmental sustainability.
This support is expected to further strengthen the Indonesia–Germany partnership in driving sustainable development and accelerating the energy transition. ISEW 2026 is also expected to serve as a platform to strengthen Indonesia's progress toward a sustainable, secure, and inclusive energy system.
Conclusion
Indonesia is currently entering the first phase of its energy transition, running through 2029, with a focus on strengthening foundations. By 2039, Indonesia will enter a phase of broad expansion before aiming for technological self-reliance in nuclear and marine energy by 2045. Throughout this process, the Indonesia-Germany partnership plays a role by providing policy support, capacity building, technical assistance, blended financing, and investment readiness for clean energy projects.
Read more: PT Semen Indonesia Utilizes Renewable Energy and Alternative Fuels to Reduce Carbon Emissions