Jakarta, INTI - Southeast Asia, with its abundant natural resources, holds great potential to lead the global energy transition. As part of ASEAN, Indonesia is moving rapidly to seize this opportunity. During the thematic session "Decarbonization Opportunities in ASEAN" at the Indonesia International Sustainability Forum 2024, Coordinating Minister for Maritime Affairs and Investment (Menko Marves), Luhut B. Pandjaitan, highlighted Indonesia's vast potential as a major exporter of renewable energy.
“Indonesia has a solar energy potential of 3,300 GW, one of the largest in the world. This is not only important for Indonesia but also for supporting global decarbonization efforts,” explained Menko Luhut at the forum held in Jakarta, Friday (6/9).
Indonesia’s solar energy potential can be harnessed to produce and export green electricity to neighboring countries like Singapore. Menko Luhut explained that the partnership between Indonesia and Singapore in green electricity trade is expected to attract investments of USD 30-50 billion for the development of solar power plants and PV manufacturing in Indonesia.
Green Investment and ASEAN Market Potential
This green electricity trade partnership serves as a gateway for Indonesia to enter the renewable energy market in ASEAN. According to Menko Luhut, Southeast Asia holds a huge market potential for clean energy, especially amid global efforts to reduce carbon emissions.
"This USD 30-50 billion investment will not only boost Indonesia's renewable energy production capacity but also strengthen Indonesia’s position as a leading clean energy supplier in the ASEAN region," said Luhut.
Furthermore, Luhut emphasized that this step would pave the way for further collaboration with other ASEAN countries to expand clean energy trade. "This is the first step towards making ASEAN a greener and more sustainable region," he added.
Electric Vehicles and Biofuel: Innovations for a Clean Energy Future
In addition to its solar energy potential, Indonesia has also launched various initiatives to support the transition to clean energy in the transportation sector. One of them is the incentive program for battery electric vehicles (BEV), which doubled sales between 2022 and 2024 and attracted investments of around USD 10 billion.
Additionally, Indonesia, as the largest producer of crude palm oil (CPO) and seaweed, also sees a great opportunity in producing biofuels as an alternative renewable energy source. "Biofuels can be an environmentally friendly and sustainable solution, especially with Indonesia’s abundant natural resources," said Luhut.
Indonesia’s Contribution to Carbon Emission Reduction
Apart from becoming a renewable energy exporter, Indonesia is also making a significant contribution to carbon emission reduction. According to Menko Luhut, with large-scale forest rehabilitation programs and carbon storage, Indonesia has the potential to reduce emissions by up to 1,860 MtCO2e. This program is complemented by a 400-Gigaton storage capacity for Carbon Capture Storage (CCS) technology.
However, Menko Luhut stressed that while Indonesia has great potential, the success of these decarbonization efforts requires global cooperation. "International collaboration is essential to ensure the necessary technology and investment are available for Indonesia to achieve its decarbonization goals," he explained.
Indonesia is ready to lead ASEAN in the clean energy transition by leveraging its vast renewable energy potential. Through green electricity trade, electric vehicle development, and biofuel innovations, Indonesia plays a key role in global efforts to reduce carbon emissions. However, the success of this endeavor requires strong collaboration with other nations to accelerate the shift towards a sustainable clean energy future.