Indonesia's renewable energy industry holds up to US$551 billion in potential

  • Published on 26/03/2025 GMT+7

  • Reading time 2 minutes

  • Author: Julian Isaac

  • Editor: Imanuddin Razak

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Indonesia has potential in three sectors of manufacturing development in new renewable energy such as solar power plants (PLTS), wind power plants (PLTB) and battery storage systems with economic potential reaching US$551 billion (Rp9,146 trillion), says an energy expert.

Executive Director of the Institute for Essential Services Reform (IESR), Fabby Tumiwa, said that the three sectors, one of which is PLTS, has the potential to contribute the largest economic value, reaching US$236 billion.

He said the development of wind turbines for PLTB provides an economic value of up to US$75 billion, while the economic development of battery systems can provide economic value of up to US$240 billion.

In addition to having the potential to provide great economic value, the development of the renewable energy manufacturing industry can also open up to 9.7 million jobs.

The largest employment is in the manufacturing industry in the solar power sector with a contribution of 5.7 million people, then the battery energy storage system with 2.2 million people and wind turbine development with 1.8 million jobs.

Fabby said that the renewable energy industry could be part of Indonesia's long-term economic transformation if its potential could be maximized.

“If the renewable energy manufacturing industry develops, Indonesia does not have to benefit from economic growth from the sale of raw material commodities, but maximizing the use of this potential will drive long-term economic growth,” he concluded.

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