The race is on for Indonesia to achieve its announced goal of achieving net zero carbon emissions by 2060. Achieving this landmark goal, however, will require the country to triple its investments into renewable energy by 2030 – equivalent to an additional US$8 billion a year by the end of the decade, according to the International Energy Agency.
While the US$20 billion Just Energy Transition Partnership — announced by Indonesian President Joko Widodo and other world leaders in November 2022 to help Indonesia reduce its reliance on coal power — may provide some aid over the next five years, it is far from enough to cover the long-term expenses needed to achieve its net zero goal.
Challenges such as the high cost and lack of infrastructure for renewable energy technologies, Indonesia’s heavy reliance on its manufacturing and industrial sectors, the need to address ongoing social issues such as poverty, inequality, and a lack of public awareness around climate change, add complexities to achieving carbon neutrality.
How can Indonesia gain access to capital for a just and equitable transition? What policy changes and capital allocations are needed to decarbonise or reduce the country’s fossil fuel dependence? How will the nation prioritise its fight against climate change, all while safeguarding the livelihood of its people?
Unlocking capital for sustainability 2023: Indonesia will convene leaders and decision-makers to discuss developments in the country’s sustainability journey, the many obstacles ahead, and the best way forward.