The Purnomo Yusgiantoro Center (PYC), an energy think tank, has emphasized that the development of renewable energy (RE) in Indonesia is a critical factor for attracting multinational companies to invest in the country.
According to PYC’s research coordinator, Massita Ayu, global firms may reconsider their investments if they encounter difficulties accessing renewable energy resources in Indonesia.
“Given the current market demand for clean energy, developing renewable energy in Indonesia is essential. Many multinational companies are now part of the RE100 initiative, which mandates that their operations use 100 percent clean energy,” Ayu told a press conference in Jakarta on Thursday, October 31, 2024.
RE100 is a global initiative that encourages businesses to transition to renewable energy by pledging to achieve this target by 2050, thereby promoting a sustainable future for enterprises worldwide.
Ayu pointed out that several major global companies have faced challenges in investing in Indonesia due to the lack of electricity from renewable energy sources.
Additionally, companies looking to establish factories in industrial zones are insisting on the availability of clean energy to support their operations.
“If they cannot secure this, they threaten to withdraw from Indonesia,” Ayu said.
She cited that clean energy is no longer just an attractive option for industries exporting products to various countries; it has become essential. Industries that do not utilize clean energy risk facing export rejections from several European countries.
“For many of these companies, having access to 100 percent renewable energy is a matter of survival. Without it, they may be unable to export to certain nations,” Ayu concluded.
