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Clean Energy Finance and Investment Policy Review of Indonesia

image of Clean Energy Finance and Investment Policy Review of Indonesia

Thanks to tremendous renewable energy and energy efficiency potential and a stable, dynamic economy, Indonesia has become a coveted destination for investors in the clean energy sector. Clean energy investment, however, remains far below the level needed to realise Indonesia’s ambitious clean energy and sustainable finance goals. Instead, investment in fossil fuels continues to dominate.

This first Clean Energy Finance and Investment Policy Review of Indonesia supports efforts to reverse these trends and achieve a clean energy transition. The report provides a comprehensive overview of the current policy framework, highlighting progress and identifying untapped opportunities for strengthening policy interventions that can help scale up clean energy finance and investment. It also provides a number of tailored recommendations for the Government of Indonesia and development partners. The Review was undertaken within the OECD Clean Energy Finance and Investment Mobilisation (CEFIM) Programme, which supports governments in emerging economies to unlock finance and investment in clean energy.

English Also available in: Indonesian

Financial market policy

This chapter examines the current status and future requirements of clean energy finance in Indonesia. It reviews the current state of the Indonesian financial markets and highlights the need to deepen capital market development. It highlights financial market regulation, including the role of sustainable finance policies and targeted green finance instruments in mobilising finance for clean energy projects. The chapter also examines the role of development finance in mobilising private capital and opportunities for institutional innovation to catalyse private sector finance and investment.

English Also available in: Indonesian

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