Indonesia has ambitious targets for achieving net-zero emissions by 2060 (or sooner) with renewable energy playing a pivotal role in achieving this goal. However, despite this ambition, ample interest from renewable energy developers, and favorable financing options; the development of renewable energy infrastructure has progressed at a slower pace than anticipated. According to the Indonesia Energy Transition Outlook (IETO) 2022, the share of renewable energy in the country’s primary energy mix declined to 10.4% in 2022, from 11.5% in 2021.
To meet its renewable energy targets, Indonesia must harness a diverse mix of sources. Wind energy, both onshore and offshore, presents a significant opportunity for expansion. Potential estimates range from 17 GW to 155 GW, underscoring its substantial capacity. However, Indonesia’s current wind energy utilization remains limited, with only 154 MW installed capacity from two wind farms in Sulawesi. This disparity highlights the substantial room for growth in this sector.
Addressing this untapped potential requires a concerted effort to create a favorable environment for wind energy development in Indonesia.
The slow development of Indonesia’s wind energy sector is primarily due to a complex regulatory environment, multiple stakeholders with competing interests, and limited clarity for investors.
To address these challenges, the Indonesian Ministry of Energy and Mineral Resources (MEMR) initiated the “Wind Energy Development in Indonesia: Investment Plan” project, in collaboration with the Southeast Asia Energy Transition Partnership (ETP) and the United Nations Office for Project Services (UNOPS) and Pondera Consultancy as the implementing partner.
On the 26th of September, 2024, ETP successfully handed over the results of its wind energy development projects to the Directorate General of New, Renewable Energy, and Energy Conservation (DJEBTKE) at the Ministry of Energy and Mineral Resources (MEMR). The handover event, saw the launch and presentation of crucial literature, including analyses and reports as listed below*:
- Wind Energy Development in Indonesia: Investment Plan (IN) | (EN)
- Investment Opportunities and Access-to-Finance Guide for Wind Energy Projects in Indonesia (IN) | (EN)
- Wind Energy Development Booklet (IN) | (EN)
- Roadmap: Onshore Wind Development In Indonesia (IN) | (EN)
- Access the Wind Development Prospectuses via our Publications Page LINK
*All reports can be accessed via ETP’s Knowledge Library.
These reports aim to attract investors, developers, and funding institutions to support the growth of Indonesia’s wind energy sector, and marks a significant milestone in ETP’s efforts to promote sustainable energy development in Indonesia.
This event is a tangible manifestation of the high value we place on collaboration. The development of wind energy requires multi sectoral cooperation between the government, private sector, society, and international development partners. We hope that the discussions will provide strategic recommendations to accelerate wind energy development in Indonesia, realizing a shared vision of advancing the renewable energy sector for the welfare of society and environmental sustainability.”
-Director General of New Renewable Energy and Energy Conservation Prof. Dr. Eng. Eniya Listiani Dewi
As the ETP’s implementing partner, Pondera delivered a presentation on the study’s key results, which was followed by a panel discussion titled “What is beyond the roadmap for onshore wind?” that explored concrete actions to be taken to accelerate Indonesia’s onshore wind development.
Panelists: Coordinator of Investment and Cooperation of Various NRE MEMR Praptono Adhi Sulistomo, Manager of Various NRE of PT PLN (Persero) Muhammad Indrawan, Chairman of the Indonesian Wind Energy Association (AEAI) Agung Hermawan, and President Director of PT PLN Enjiniring Chairani Rachmatullah, moderated by ETP UNOPS representative Achmed Edianto.