In order to accelerate the transition to clean energy, the Indonesian Chamber of Commerce and Industry (Kadin) through the Kadin Transition Energy Working Group held a strategic meeting with the United States government. The meeting was attended by the US Assistant Secretary of Finance, Alexia Latortue, to discuss opportunities and overcome challenges in green investment through the EBT (New Renewable Energy) sector in Indonesia.

At the meeting, Vice Chair for Maritime Affairs, Investment and Foreign Affairs of Kadin Indonesia, Shinta Widjaja Kamdani, explained the many investment opportunities and potentials that Indonesia has in the renewable energy sector. Indonesia is also a country that has the second largest NBS (Nature Based Solutions) in the world after Brazil, up to 1.5 GtCO2/year.

"Indonesia has renewable energy resources totalling 3,686 GW, consisting of 3,295 GW of solar power, 95 GW of hydropower, 57 GW of bioenergy, 155 GW of wind power, 24 GW of geothermal energy, and 60 GW of ocean energy. However, of the total capacity of 3,686 GW, only 12.54 MW has been utilised. By developing this potential, Indonesia can have more than 1.1 terawatts of renewable energy capacity and can become a leader in the global transition to renewable energy,’ said Shinta.

In line with Shinta, Chairman of the Energy Transition Working Group of Kadin Indonesia, Anthony Utomo said the investment made by the US in Indonesia can open more space to increase renewable energy capacity, develop green technology, and attract other countries to participate in investing in Indonesia in the EBT sector. However, there are several challenges that need to be overcome in implementing this, such as infrastructure that needs to be improved, supporting regulations, and adequate human resource readiness.

‘Therefore, through the Kadin Energy Transition Working Group, we will bridge and unite various key stakeholders in the renewable energy sector to work together to implement innovative and sustainable solutions,’ said Anthony.

Anthony also said that the Kadin Energy Transition Working Group has prepared three key initiatives to help prepare companies in Indonesia to attract local and global investors, namely:

1. Encouraging the Implementation of the Green Development Initiative:
   This effort focuses on developing strategies towards a sustainable green industrial ecosystem with the use of clean energy, both from the supply and demand sides.
2. Developing Renewable Energy Manufacturing:
   This effort aims to support domestic supply chain technology independence, especially in supporting the development of clean energy in Indonesia in accordance with Indonesia's TKDN roadmap.
3. Accelerating Distributed Energy:
   This effort aims to accelerate energy distribution or utilisation of independent clean energy generators for industrial consumption, as well as encourage the use of clean energy through various innovative solutions provided by our members.

"Through these initiatives, the Kadin Energy Transition Working Group is optimistic that it can help improve the competitiveness of Indonesian companies and create added value in the eyes of local and global investors. The investment made by the United States is proof that Indonesia has promising investment potential in the EBT sector,’ said Anthony.

For information, Indonesia is the largest recipient of green investment in Southeast Asia in 2023, totalling nearly US$1.6 billion, growing by around 28% over the previous year. With this figure, Indonesia accounts for 25% of the total investment in Southeast Asia. By 2023, the United States has also invested US$500 million in Indonesia in the manufacture of solar panels and solar modules. The United States is the sixth country with the largest investment realisation in Indonesia, where the investment value reached a total of USD9.4 billion during the period 2018 to the first quarter of 2023. Of the total investment realisation, there were 5,683 projects that managed to absorb 82,299 workers.