Antara News·Indonesia·Tuesday, September 29, 2026 at 11:47 AM

Govt targets US$618 bln investment in low-carbon sectors by 2040

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Ahmad Muzdaffar Fauzan, Yashinta Difa

Jakarta (ANTARA) - The Indonesian government is deepening low-carbon value chains—spanning electric vehicles (EVs), batteries, solar components, and biofuels—under a US$618.1 billion green downstreaming roadmap targeting completion by 2040.

"The value chains requiring deepening include solar panel components, biofuels, clean molecules—such as sustainable aviation fuel and hydrogen—as well as electric vehicles, batteries, and battery energy storage systems (BESS)," Secretary of the Investment and Downstreaming Ministry M. Rudy Salahuddin said here on Tuesday.

The initiative forms a core part of a national roadmap encompassing 28 strategic commodities across eight key sectors, which officials project will generate up to 3 million new jobs.

The strategic push comes as global demand for clean technology surges.

Citing UN Comtrade data, Rudy noted that global trade in electric vehicles and batteries surged from US$90 billion in 2019 to nearly US$450 billion in 2025, while trade in renewable energy technologies grew from US$210 billion to more than US$350 billion.

Indonesia possesses significant potential to capture these markets, supported by a national renewable energy potential of 3,687 gigawatts (GW)—including 3,294 GW from solar power.

However, utilized renewable capacity as of 2026 remains under 0.5 percent at approximately 16.33 GW.

To support this industrial scaling, the government's 2025–2034 Electricity Supply Business Plan (RUPTL) mandates the addition of 69.5 GW in power generation and energy storage capacity.

Rudy noted that implementing the updated power master plan is set to unlock Rp2,133.7 trillion (approximately $119.2 billion) in total investment opportunities, including Rp1,341.8 trillion (US$75 billion) designated for renewable energy development under independent power producer (IPP) schemes.

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