As the world moves toward a more sustainable future, Indonesia is emerging as a critical player in the global energy transition. With an estimated USD 3.6 trillion in investment potential in the downstream clean energy sector by 2060, the nation is positioning itself as a leading destination for green energy investments. This projection was presented by Edy Junaedi, Deputy for Investment Implementation Control at the Investment Coordinating Board (BKPM), during the Executive Forum on Sustainable Investment, organized by Media Indonesia in Jakarta on November 18.
Edy highlighted that Indonesia’s ambitious goal of achieving net-zero carbon emissions by 2060 is central to its green energy strategy. He pointed out that the downstream energy sector is poised to play a pivotal role in this transition, offering not only immense financial rewards but also the potential to drive long-term societal and environmental benefits. “This sector holds a vast investment potential, approximately IDR 50,000 trillion, or USD 3.6 trillion,” he explained. “It’s not merely about financial figures—it’s about creating tangible impacts that align with our sustainability goals.”
The country’s strategy is deeply intertwined with global trends. As the international community increasingly adopts sustainable practices and enforces mechanisms such as carbon taxes, Indonesia is seizing the opportunity to align its policies with these global priorities. Agreements like the Paris Accord serve as a framework for Indonesia’s commitment to reducing emissions and fostering green growth.
However, Edy emphasized that realizing this potential requires a concerted effort across multiple sectors. He underscored the importance of collaboration between the Ministry of Energy and Mineral Resources, the Ministry of Environment and Forestry, the Ministry of Industry, and the Ministry of Investment. Such coordinated action is essential to ensure that policies not only attract investment but also distribute their benefits equitably across the nation.
The forum provided a platform for in-depth discussions on the practical steps needed to unlock Indonesia’s clean energy potential. Participants explored the role of innovation in renewable energy technologies, including advancements in geothermal, solar, and wind power. Edy reiterated the government’s commitment to fostering a supportive investment climate, emphasizing regulatory clarity and incentives designed to encourage global participation.
Indonesia’s downstream energy sector is a key driver of its broader green economy ambitions. By optimizing its renewable energy resources, the nation is charting a path toward sustainable development while addressing urgent environmental challenges. The forum highlighted the importance of integrating economic, environmental, and social priorities to create a cohesive strategy for growth.
As Indonesia embraces this transformative journey, the USD 3.6 trillion investment potential represents not only an economic opportunity but a profound commitment to building a sustainable future. With its vast natural resources, strategic policies, and collaborative approach, the nation is poised to become a global leader in clean energy innovation and development.
