Indonesia eyes US$3.8 trillion energy transition investment by 2050

Jakarta (ANTARA) - Indonesia has a strong opportunity to attract investment in the energy transition, with investment opportunities estimated at up to US$3.8 trillion through 2050, while global investment in the sector reached US$2.3 trillion in 2025.

"The energy transition is increasingly becoming an agenda of economic competitiveness, energy security, and industrial strategy, and this is very important for Indonesia," the Indonesian Chamber of Commerce and Industry (Kadin) Chairperson Anindya Bakrie said in a statement here on Monday.

According to Bakrie, investment opportunities in the energy transition sector remain open amid geopolitical uncertainty, shifting trade patterns, and growing attention to energy security.

Global investment in the energy transition reached a record US$2.3 trillion in 2025, with the Asia-Pacific region accounting for nearly half of the global total. For Indonesia, the opportunity is also considered significant.

Based on a study, Indonesia's pathway to net zero is estimated to create investment opportunities of up to US$3.8 trillion through 2050.

Bakrie said Indonesia has strong capital to seize the opportunity, including its critical mineral wealth, abundant renewable energy potential, large domestic market, and developing electric vehicle, battery, biofuel, and geothermal sectors.

"That is a strong foundation for Indonesia to increase added value and build higher-value industries with lower carbon emissions in the country," he stated.

He outlined three priorities that Indonesia needs to strengthen in driving the energy transition.

First, the energy transition must strengthen national competitiveness and energy security. The transition needs to deliver reliable, affordable, and increasingly low-carbon energy to strengthen industry, attract investment, and create jobs.

Second, Indonesia needs to capture more added value from the clean energy economy by moving from merely a raw material supplier toward green industrialization.

Third, efforts are needed to bridge the gap between capital availability and bankable projects. This can be achieved through greater regulatory certainty, credible projects, strengthened infrastructure, and financing mechanisms that make sustainable investments viable at scale.

"This is where collaboration between the government and the private sector becomes very important," Bakrie said.

Furthermore, he affirmed that Kadin continues to promote the "Indonesia Incorporated" spirit, bringing together the government, state-owned enterprises (SOEs), private companies, investors, financial institutions, and international partners to work together in supporting national development goals.

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Translator: Ahmad, Kenzu
Editor: M Razi Rahman
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