Indonesia urged to maximize China’s BRI investments for renewable energy transition
Health and Environment Solution provider, Sustain Foundation, has urged the Indonesian government to seize investment opportunities from China’s Belt and Road Initiative (BRI) to accelerate the country’s shift toward renewable energy.
Tata Mutasya, Executive Director of Sustain Foundation, said Indonesia became the largest BRI investment recipient in 2024, receiving US$9.3 billion (Rp148.8 trillion). Of that total, around US$900 million was directed toward the energy sector, including renewable projects.
He emphasized that the government should redirect more of China’s investment flows into renewable energy. Sustain’s simulation showed that if the entire BRI energy investment were allocated to renewable sources, Indonesia could generate Rp144 trillion (US$8.6 billion) over 10 years.
“If optimized, this could create the equivalent of 80 Cirata floating solar power plants,” Tata said during the launch of SUSTAIN and CERAH’s report, “Leveraging China’s Green Momentum to Advance Indonesia’s Economic Development,” on Wednesday, November 5, 2025.
The simulation also indicated that such investment could create 112,000 jobs, cut 17 million tons of CO₂ emissions, and supply electricity to 4 million households nationwide.
SUSTAIN further analyzed West Java as a case study for regional investment distribution.
“West Java has the largest population and the highest number of PLN (State electricity company) customers − 17 million, or about 19 percent of Indonesia’s total,” Tata said, while citing that electricity demand in the province is projected to grow by 43 percent in the next decade.
According to the study, 30 percent of current BRI funding − around Rp42.7 trillion − could finance 3.6 GW of solar power projects under Indonesia’s 2025–2034 Electricity Supply Business Plan (RUPTL) in West Java. This could generate 33,000 jobs and reduce 5.14 million tons of carbon emissions annually.
Beyond power generation, opportunities also lie in the electric vehicle (EV) manufacturing sector, as West Java already has the necessary infrastructure and industrial base.
“The EV market in Indonesia is growing rapidly, driven by incentives for both producers and consumers. Localization of Chinese EV manufacturing is ongoing in Subang, West Java, where factory construction is still underway,” Tata noted. “In West Java alone, we could potentially build four EV manufacturing plants comparable to BYD’s size, creating 70,000 formal jobs with higher incomes than informal employment,” she added.
Yeremia Lalisang, Senior Assistant Professor of International Relations at the University of Indonesia, urged caution in projecting job creation figures. While acknowledging the positive impact of investments, he noted that solar power plants require fewer workers once operational.
“After solar plants begin operation, manpower needs decline significantly. Operation and maintenance only require a small team − solar technology is designed for minimal staffing,” Yeremia said.
He added that the job potential in renewable energy is generally lower than in manufacturing or agriculture, despite its distinct industrial nature. Yeremia also questioned the report’s use of the term ‘localization,’ which covers local capacity building and employment but may lack clarity in scale.
“High-tech manufacturing requires specialized skills, which many rural areas lack. This means companies may bring in workers from other regions who have the right expertise,” he said.
Still, Yeremia acknowledged that such projects can stimulate local economies indirectly.
“Even if the workforce comes from elsewhere, they contribute to local economic activity − paying rent, buying food, and using local services,” he concluded.
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