Jakarta, INTI - The energy transition has become one of Indonesia’s strategic priorities to strengthen national energy security and promote sustainable development. However, the country’s renewable energy mix currently remains at around 13–14 percent, still below the national target of 23 percent, highlighting the need for faster and more concrete policy implementation.
Secretary General of the Indonesian Renewable Energy Society, Paul Butarbutar, stated that regulatory clarity plays a crucial role in shaping long-term energy policies and attracting investment.
“The biggest challenges in the current energy transition are the continued dominance of fossil fuels, which still account for more than 80 percent of the energy mix, limited fiscal incentives, and project pricing schemes that are not yet competitive. At the same time, investment needs to support the transition are projected to reach hundreds of billions of US dollars by 2060, making regulatory certainty an essential requirement,” Paul said during a Focus Group Discussion (FGD) on the Power Purchase Agreement (PPA) or Electricity Purchase Agreement (PJBL) scheme.
METI Pushes for Bankable Renewable Energy Policies
According to Paul, achieving the national target of a 23 percent renewable energy mix will be difficult without accelerating the implementation of the EBET Law.
“Through this forum, METI encourages reforms in the PPA/PJBL structure to make it more bankable and transparent, while also strengthening cross-sector collaboration between the government, PLN, industry players, and financial institutions,” he explained.
During the discussion, Paul emphasized that METI continues to position itself as a strategic partner of the government in accelerating the implementation of Indonesia’s green energy transition and green economy agenda.
Conclusion
METI emphasized that accelerating Indonesia’s energy transition requires stronger regulatory certainty, more competitive renewable energy schemes, and broader collaboration between government, industry, and financial institutions. With renewable energy adoption still below national targets, policy reform and investment readiness will play a critical role in supporting the country’s long-term green economy and Net Zero ambitions.
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