Indonesia Aims for 100% Renewable Energy by 2035, Backed by Increased Plant Expansion and Financing Push

Indonesian President Prabowo Subianto has reaffirmed his government’s commitment to achieving a 100% renewable energy target by 2035, a goal he highlighted during a recent joint press conference with Brazilian President Luiz Inácio Lula da Silva on July 9, 2025, at the Planalto Palace in Brasília.

Prabowo echoed the same commitment earlier at the G20 forum, where he also outlined plans to add 75 gigawatts (GW) of renewable energy capacity and accelerate Indonesia’s Net Zero Emissions goal to 2050. “The official target is 2040,” he said, “but my experts believe we can achieve it even sooner,” according to an official statement released on July 10.

However, reaching this ambitious target will require significant investment and comprehensive policy reforms. The government’s 2025–2034 General Electricity Supply Plan (RUPTL) sets a target of 61% of the national energy mix from renewable sources, while approximately 24% would still come from fossil fuels, such as coal and natural gas.

To meet this target, the government will need to accelerate early retirement of coal-fired power plants, cancel fossil fuel projects listed in the current RUPTL, and expand large-scale renewable energy infrastructure.

According to Tata Mustasya, Executive Director of the Indonesian Sustainable Welfare Foundation (SUSTAIN), renewable energy generation capacity must grow 4.5 times faster between 2025 and 2029, and 11 times faster from 2030 to 2034, compared to the current pace.

Tata pointed out that financing remains the most critical hurdle. Based on SUSTAIN’s estimates, a combination of increased revenue from coal production levies and Chinese investment under the Belt and Road Initiative (BRI) could provide Rp 819.6 trillion over the next decade to support RUPTL implementation.

Of that total, approximately Rp 675.6 trillion could be sourced from additional coal levies, while Rp 144 trillion might come from BRI-related investments. SUSTAIN projects that this combined funding could cover around 77% of the financial needs for private-sector power generation, transmission, and distribution projects during Prabowo’s 2025–2029 term.

Still, Tata emphasized that these two funding sources alone are insufficient. He called on the government to introduce fiscal and energy policy reforms to better support the energy transition. In 2023, Indonesia attracted just US$1.5 billion in renewable energy investment, far short of the US$105.2 billion (Rp 1,682 trillion) required by the RUPTL over ten years.

To ensure better coordination and efficient fund allocation, Tata proposed that the Danantara Investment Management Agency be tasked with managing both funding streams. “Danantara can directly channel these funds into renewable energy projects outlined in the RUPTL,” he added.