Indonesia has established its commitment to renewable energy with the 10-year electricity procurement plan (RUPTL) for 2021-2030, which opens lucrative investment opportunities. The government has shown its initiative by reducing the production of coal-fired power plants (PLTU) while aiming for 22 percent of the nation’s energy mix to be renewable by 2025. This underscores the country’s increasing efforts and potential growth in the renewable energy market.
Electricity generated from renewable sources is mainly governed by the National Long-Term Development Plan (RPJP) 2005-2025 Law, the Energy Law, the Electricity Law, the Investment Law, and other sectoral and implementing regulations in the areas of geothermal power, water, environment and forestry.
There are multiple renewable energy opportunities in Indonesia. Starting from the most “traditional” sources, such as hydro power and geothermal power, local renewable energy players have initiated smaller-scale projects based on solar, wind, biomass, electric smart systems (ESS) and even smart grids to help realize the national shift toward greater renewable energy usage by 2025.