Indonesia’s state-owned electricity company PT PLN, with support from the government, has committed to achieving net zero emission in the electricity sector in 2060 or earlier through the early retirement of CFPPs, development of smart grids, as well as the adoption of more renewable power plants. Such commitments mean a lot of opportunities for RE projects in Indonesia and its investments. In the past years, PT PLN has signed a memorandum of understanding (MoU) with Japanese financial institutions and corporations to accelerate renewable energy development in Indonesia. These financial institutions and corporations include Mitsubishi Heavy Industries (MHI), Ishikawajima-Harima Heavy Industries (IHI Corporation), JGC, JERA, and J-Power.

Aside from PLN’s deals, Japan is committed to supporting Indonesia achieve its NZE target under the AZEC mechanism through the AZEC Japan-Indonesia Joint Task Force. Under this framework, Japan and Indonesia will jointly hold discussions on challenges that projects for decarbonization may face and solutions thereto. Through this mechanism, Indonesia has received the support of Japan for 24 energy transition projects. During the 2^nd AZEC ministerial meetings in Jakarta in August 2024, AZEC ministers agreed to launch zero emission power initiative that include increasing renewable energy capacity and reducing emissions from existing fossil-fuel thermal power plants.

Japan, the United States, other partner countries, and Indonesia launched a landmark partnership in 2022 called Just Energy Transition Partnership (JETP) Indonesia. Co-led by Japan and the United States, this partnership commits to mobilize an initial US$20 billion in public and private financing to decarbonize Indonesia’s energy sector to achieve NZE in 2060 or earlier.

Recently, PLN introduced the Accelerated Renewable Energy Development (ARED) program, which is set to be a cornerstone of the upcoming national electricity supply business plan—the greenest in the nation's history. ARED aims to transform Indonesia's energy mix by ensuring the upcoming electricity generation addition up to 2040 will be 75% from renewable energy sources (EBT) and 25% from natural gas. Furthermore, ARED is driving a transformative effort toward equitable national electrification through the Green Enabling Super Grid. This visionary initiative will integrate previously disconnected electricity systems across the Indonesian archipelago, creating a unified national grid. As a result, Indonesia will be able to tap into its vast, previously underutilized renewable energy resources, especially in remote regions, unlocking the full potential of large-scale EBT capacity from 22 GW to 61 GW in 2040. In total the ARED investment requires massive amount of investment, US$ 166 billion.

With this in mind, this session will discuss the opportunities and challenges presented by Indonesia’s unique energy transition landscape, and what’s in it for Japanese renewable energy players to succeed Indonesia’s greenest national electricity supply business plan through Japan-Indonesia collaboration.

Speakers

Febrio Kacaribu

Head of Fiscal Policy Body of the Ministry of Finance

Nurul Ichwan

Deputy for Investment Promotion at the Ministry of Investment/BKPM

Edo Mahendra

Head of the Implementation Joint Office of the Indonesian Energy Transition (Rumah PATEN)

Moderator

Riyadi Suparno

Executive Director of Tenggara Strategics

Japan is a global player in the new and renewable energy, with its variety of new and renewable energy sources such as nuclear, geothermal, hydropower, wind, and solar. Japan is also a global leader in renewable technology, notably in solar energy, controlling global photovoltaic market with 45% of photovoltaic cells produced in the country. Japan is also in the forefront in transitioning thermal energy toward zero emission through ammonia co-firing in coal-fired power plants, alongside CCS and biomass.

Japan has several arrangements to support Indonesia's energy transition to achieve NZE, including through AZEC and JETP mechanisms. While both AZEC and JETP are under government-to-government arrangement, they offer good opportunities for Japanese private investors and financiers to invest in Indonesia’s energy transition projects. JETP Indonesia, for example, offers energy transition projects under JETP’s five investment focus areas: (1) early coal-fired power plant retirement; (2) transmission and grid expansion; (3) acceleration of dispatchable RE deployment; (4) acceleration of variable RE deployment; and (5) renewable energy (RE) value chain enhancement.

Japanese investors and financers have been active in Indonesia’s energy transition, from early retirement of a coal-fired power plant (CFPP), to investing in geothermal and hydro power plants, and even in smart grid projects. More investments are expected from Japanese investors and financiers in Indonesia’s energy transition projects.

This session will hear Japanese investors and financiers’ perspectives on investing in Indonesia’s renewable sector, particularly to support Indonesia’s energy transition through Japan-Indonesia collaboration.

Speakers

Ohira Eiji

Strategy Architect Hydrogen and Ammonia Department, New Energy and Industrial Technology Department Organization (NEDO)

Okuma Takuya

Director of Division 3, New Energy and Power Finance Department I, Japan Bank for International Cooperation (JBIC)

Takenori Nasu

Director of Southeast Asian Division 1, Southeast Asia and Pacific Development, Japan International Cooperation Agency (JICA)

Yokoi Hachiman

General Manager of Energy Solution & Healthcare Division, Sojiitz Corporation

Gita Sjahrir

Head of Investment, BNI Ventures

Moderator

Muhammad Aziz

Renewable energy expert from the University of Tokyo

In pursuing energy transition, the Indonesian government and PT PLN are taking a two-prong approach, reducing or limited the fossil-fueled power plants on one hand and developing more dispatchable (baseload) and variable renewable power plants. While reducing and limiting the use of fossil-fueled power plants are driven more by government policy, building more renewable power plants need huge investments, especially for Indonesia where renewable energy constitutes a small portion of the total energy mix.

Under PLN's Accelerated Renewable Energy Development (ARED) program, Indonesia plans to build extensive renewable energy infrastructure by 2040. The projected investment required to achieve these goals is substantial, from total US$ 166 billion required investment, estimated US$ 139 billion is needed for the development of renewable energy generation capacity and an additional US$ 27 billion is deemed to upgrade and expand the transmission system.

Given the scale of investment required, the ARED program highlights the need for significant foreign investments to help finance the transition and realize Indonesia's ambitious renewable energy goals. This collaboration will be essential to expand the nation's renewable energy portfolio and support Indonesia's commitment to reducing emissions and achieving a sustainable energy future

This session will showcase a number of renewable energy projects under PLN subsidiaries, especially PT Nusantara Power and PT Indonesia Power, the two energy companies with the largest power generations in Indonesia. The session will hear explanations on projects on offer for Japanese investors.

Speakers

Darmawan Prasodjo

President Director of PT PLN (Persero)

Ruly Firmansyah

President Director of PT PLN Nusantara Power

Edwin Nugraha Putra

President Director of PT PLN Indonesia Power

Reynaldi Hermansjah

President Director of PT Sarana Multi Infrastruktur (SMI)

Moderator

Ananda Setiyo Ivannanto

CEO of PT Awina Sinergi International

In addition to the main forum, the fourth Japan RE Invest Indonesia will also organize a business matching event on the side-lines. The business matching event is an effort to accelerate the realization of the goals of this series of forums. It is intended to connect Indonesian renewable energy project owners in Indonesia, especially PT Nusantara Power and PT Indonesia Power with Japanese investors and financiers from Japan by connecting the two parties in an initial meeting. The session aims to provide project owners with potential B-to-B partnerships to complete their projects.

As part of this session, the IET Channel will also be highlighted as a dedicated platform to facilitate ongoing connections between developer and investors, specifically supporting renewable energy growth in Indonesia. By integrating the platform into the session, project owners and investors from Japan are encouraged to join its ecosystem, enabling continuous engagement and collaboration.