President Prabowo Subianto’s bold pledge to achieve 100 percent renewable energy by 2035 will require substantial financing and significant policy reform, particularly from the Ministry of Energy and Mineral Resources (ESDM) and the Ministry of Finance, according to the Indonesian Foundation for Sustainable Welfare (SUSTAIN).

The commitment, reiterated during Prabowo’s recent visit to Brazil and previously at the G20 forum, includes an additional target of installing 75 gigawatts of renewable energy capacity and accelerating Indonesia’s Net Zero Emissions goal by a decade − now set for 2050 instead of 2060.

In the new 2025–2034 Electricity Supply Business Plan (RUPTL), the government aims to generate 61 percent of electricity from renewable sources over the next ten years, reducing the role of fossil fuels, including coal and gas, to just 24 percent. But to reach Prabowo’s 100 percent renewable goal, the country must phase out planned fossil fuel projects, retire existing coal-fired power plants (PLTUs) early, and dramatically scale up renewable generation.

Tata Mustasya, Executive Director of SUSTAIN, warned that under the current pace of renewable development, Indonesia will need to multiply its annual installation rate 4.5 times between 2025 and 2029, and 11 times between 2030 and 2034.

“The government often cites lack of funding as the key obstacle to renewable energy expansion,” he said in a statement on Monday, July 14, 2025.

Funding opportunities

SUSTAIN’s latest report identifies two major financing sources that could support this transition: increased coal production levies and bilateral investment from China.

“We’ve calculated that these two sources could jointly generate up to Rp819.6 trillion (US$51 billion) over the next decade,” Tata said.

Specifically, a scaled-up coal levy could raise IDR 675.6 trillion, while China − Indonesia’s top energy investor under the Belt and Road Initiative (BRI) − could provide at least Rp144 trillion in renewable energy finance during the 2025–2034 period.

These combined funds would be sufficient to cover 77 percent of private renewable power generation, transmission, and distribution projects listed in the RUPTL during President Prabowo’s current administration term (2025–2029).

Broader energy, fiscal reforms

Despite the significant funding potential, Tata emphasized that these sources alone would not be enough. “The government must also implement bold policy reforms in the energy and fiscal sectors to shift capital towards domestic and foreign investment in renewables,” he said.

According to data from the Institute for Energy Economics and Financial Analysis (IEEFA), Indonesia attracted only USD 1.5 billion in renewable energy investment in 2023 − far below the estimated US$105.2 billion (Rp1,682.4 trillion) needed over the next decade as outlined in the RUPTL.

Danantara’s role

To streamline funding, Tata proposed that the national investment management body Danantara be tasked with overseeing the disbursement of these new financial streams.

“Danantara can directly channel both funding sources into renewable energy projects listed in the RUPTL,” he said.

Tata concluded by underscoring the urgency of aligning policy and financing strategies with the President’s ambitious climate and energy agenda. Without immediate structural reform and targeted funding, Indonesia risks falling short of its 100 percent renewable energy goal.