The Institute for Essential Services Reform (IESR) has called for stronger government policies in an attempt to boost renewable investment in Indonesia amidst the government's difficulties in achieving renewable energy investment targets.

IESR Executive Director, Fabby Tumiwa, said that the low interest in investing in renewable energy in recent years indicates an unsupportive investment climate.

"Community rejections that occur in a number of renewable energy projects such as geothermal in Flores, Floating Solar Power Plant (PLTS) in West Sumatra, and Hydroelectric Power Plant (PLTA) increase the risk of renewable energy projects in the eyes of business actors and financing institutions," Fabby said on Friday, March 21, 2025.

He said IESR welcomed and appreciated the establishment of the Energy Transition and Green Economy Task Force (Satgas TEH) through the Decree of the Coordinating Minister for the Economy No. 141/2025.

The existence of this Task Force demonstrates the commitment of President Prabowo Subianto's government to continuing the energy transition agenda that was designed by the previous government.

Fabby said the formation of the Task Force was a positive signal that the government was prioritizing Indonesia's energy transition.

Expectation

It is largely expected that this Task Force can accelerate the energy transition in accordance with the objectives of the Paris Agreement and implement the Bali Energy Transition Roadmap and Bali Compact agreed upon in the 2022 G20 Summit under Indonesia's leadership.

"The formation of the TEH Task Force is also a form of Indonesia's moral responsibility in implementing the results of the G20 decisions, including the nine principles of the Bali Compact and three priorities in the Bali Energy Transitions Roadmap for the global energy transition, namely ensuring energy access, increasing the use of clean and smart energy technology and encouraging renewable energy funding," Fabby said.

IESR encourages the TEH Task Force to become a coordination forum between ministries and government agencies to accelerate the energy transition. As well as addressing barriers to renewable energy investment and designing policies that better support clean energy.

In addition, this Task Force is also expected to strengthen Indonesia's role in the implementation of the Just Energy Transition Partnership (JETP) and Energy Transition Mechanism (ETM).

So that Indonesia's credibility in managing energy transition financing in the electricity sector increases, and achieves the Net Zero Emission target of 2050 and electricity sector emissions by 2030.

IESR also believes that the transition from fossil fuels to renewable energy in Indonesia can be done quickly and cost-effectively.

"Europe will soon impose a carbon tax on goods and services entering its territory, signaling that global trade and economic development are moving in a low-carbon direction," he said.

Indonesia must ensure its industry is ready to remain competitive. The TEH Task Force plays a key role in accelerating the green economic transformation by driving decarbonization in the industrial sector.

"This is a crucial step to ensure Indonesia's sustainable economic development in the future," Fabby explained.

In addition, IESR also encourages the TEH Task Force to ensure inclusive communication with various stakeholders, including civil society organizations, business actors and other private sectors.