Clean Energy Finance and Investment Policy Review of Indonesia
Thanks to tremendous renewable energy and energy efficiency potential and a stable, dynamic economy, Indonesia has become a coveted destination for investors in the clean energy sector. Clean energy investment, however, remains far below the level needed to realise Indonesia’s ambitious clean energy and sustainable finance goals. Instead, investment in fossil fuels continues to dominate.
This first Clean Energy Finance and Investment Policy Review of Indonesia supports efforts to reverse these trends and achieve a clean energy transition. The report provides a comprehensive overview of the current policy framework, highlighting progress and identifying untapped opportunities for strengthening policy interventions that can help scale up clean energy finance and investment. It also provides a number of tailored recommendations for the Government of Indonesia and development partners. The Review was undertaken within the OECD Clean Energy Finance and Investment Mobilisation (CEFIM) Programme, which supports governments in emerging economies to unlock finance and investment in clean energy.
Also available in: Indonesian
Investment and competition policy
This chapter reviews Indonesia’s investment and competition framework in the context of clean energy. It examines the country’s efforts to level the playing field between the national power utility and independent power producers, as well as to create a fair, efficient and transparent procurement process for renewables. It assesses Indonesia’s foreign direct investment regime, highlighting possible avenues to make it more attractive to foreign investors in the clean energy sector. The chapter also explores other important avenues to improve the framework for clean energy investment, including how to facilitate land access and acquisition and reduce the costs of clean energy equipment (local content requirements) as well as how to better harness public-private partnerships for clean energy.
Also available in: Indonesian
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