Investment and Innovation for Sustainable Development
Sustainable development in Indonesia is not just about achieving the Sustainable Development Goals (SDGs). It is an ambitious journey aimed at creating economic resilience and mitigating climate change, with huge investment needs estimated at $272 billion by 2030.
The government has identified a $5 billion fund to increase renewable energy capacity by 2030. The main target of the strategy is to increase energy intensity by 1% per year.
Another target is to increase annual greenhouse gas emissions reduction capacity by 24.5%, from 358 MtCO2e to 446 MtCO2e by 2030, in line with the global zero emissions target by 2060.
This major commitment is supported by Indonesia’s Joint Energy Transition Plan (JETP), which focuses on community preparation and equitable green job creation. The JETP aims to ensure an equitable energy transition that benefits all of society, leaving no one behind.
It is a significant step towards sustainable use of new and renewable energy, supported by an integrated electricity grid and green transport.
The strategy designed by Indonesia is also in line with the “Golden Indonesia” vision, which places the energy transition as one of the key game changers.
Measures in this strategy include subsidy reforms, particularly in renewable energy and targeted fertilisers, to promote efficiency and sustainability.
The acceleration of energy transition is implemented with various strategies, namely limiting the construction of coal-fired power plants, massive construction of renewable energy power plants, strengthening electricity transmission systems integrated with smart grids and the use of Energy Storage System (ESS).
Other strategies include expanding mandatory use of biofuel and co-firing of coal-fired power plants, increasing the use of natural gas in the industrial sector and expanding the application of carbon credits.
With such a comprehensive approach, Indonesia demonstrates that its sustainable development ambitions are not only about meeting SDG targets, but also about ensuring a safe, clean and equitable future for future generations.
Investments in renewable energy, infrastructure renewal and innovative policies are tangible steps towards a greener and more resilient Indonesia
Source : Bappenas
