The World Resources Institute (WRI) Indonesia has assessed that Indonesia needs to include funding options from the private sector to achieve the target of developing new renewable energy power plants of 75 gigawatts (GW) as planned by President Prabowo Subianto.
Reza Rahmaditio, Critical Minerals Project Lead, said that the role of the private sector was a topic discussed at the recently concluded Conference of the Parties (COP) 29 climate summit in Baku, Azerbaijan.
A number of global banks have also encouraged the private sector to play a greater role in supporting developing countries in achieving net zero emissions (NZE).
“In the context of Indonesia, it is actually quite relevant. Because in the future we will face energy growth from the private sector,” Reza said on Tuesday, November 26, 2024.
He cited that the private sector can help Indonesia achieve its clean energy mix target through the development of power plants for industry.
Currently, the world has begun to encourage the use of clean enerfy for products produced by industry.
Reza suggested that the government must simplify regulations governing the development of clean electricity in order to attract investors in the development of EBT power plants in Indonesia.
In addition, the government is expected to prepare a fair competitive climate between renewable energy and fossil energy generators by among others not providing subsidies to fossil-based power plants.
Previously, President Prabowo through Hashim Djojohadikusumo, Indonesia’s special representative at the COP29 event, had offered the construction of clean energy generators, which required funds worth US$234 billion (Rp3,709 trillion).
The program offered by President Prabowo to the world is a program to add 100 GW of power plants that will be implemented by the government in the next 15 years.
