Renewables, batteries key to Indonesia's energy future: IEEFA

These technologies provide affordable investment opportunities, it said.

Indonesia can cushion the impact of volatile energy and dollar markets by maximising investment opportunities in renewables and battery technologies.

“This is an opportunity to show what is possible for Indonesia under the newly formed government: renewables technologies, energy efficiency, and electrification are great economic levelers that provide affordable investment opportunities,” Grant Hauber, strategic energy finance advisor for Asia at the Institute for Energy Economics and Financial Analysis (IEEFA), was quoted as saying in an event.

Hauber’s January report has shown that this is true for solar energy since Indonesia’s current energy plan has the region’s fewest near-term planned solar additions despite its substantial solar generation potential.

“You can add hundreds of megawatts of solar in six to 12 months, not years, and we've seen countries throughout the region take advantage of this,” the expert said.

To further leverage international cooperation and private investments, clear, and efficient processes need to be established to attract capital.

“For Indonesia to create an environment that welcomes renewables investments, implementing procurement protocols and bidding processes that are consistent, fair, and transparent are crucial,” said Hauber.