Some 430 large global businesses have strongly encouraged Indonesia to increase its ambition on renewable electricity and unlock greater investment in the country’s energy transition. In a letter to President Joko Widodo of Indonesia, penned by CEO Helen Clarkson of Climate Group on behalf of RE100’s 430+ member companies, the letter warns that failing to do so will influence corporate investment in Indonesia. The letter urges Indonesia to get ready for upcoming carbon tariff regulations, such as the EU’s Carbon Border Adjustment Mechanism and Australia’s Carbon Tariff, that are pushing for greener supply chains from large corporates.
This letter, also copied to the President-elect of Indonesia and several ministries, specifically encourages Indonesia to focus on renewables in the redraft of its National Energy Plan and other upcoming policies.
The letter sets out three key areas that RE100 members see as critical to unlocking private investment in Indonesia’s renewable future: Increase ambition by setting a 34% renewable energy target for 2030; increase the amount and pace of new renewable projects coming onto the grid; and create an electricity market that allows more direct sourcing options between corporate buyers and electricity producers, with an emphasis on power wheeling.
RE100, Climate Group’s global initiative which brings together over 430 of the world’s biggest companies, including 121 companies who work in Indonesia, represent 2.1TWh of the country’s electricity consumption. RE100 members are committed to using 100% renewable electricity by 2050 at the very latest, including in Indonesia. This month RE100 formally launched in Indonesia, announcing a partnership with the Institute for Essential Services Reform (IESR) at the Indonesia Solar Summit.
Encouraged by the steps already taken in the country’s Net Zero Plan, Indonesia has an important opportunity to realise the economic and social benefits of the energy transition by increasing the availability, affordability and accessibility of renewable electricity, said the RE100 letter. Strong leadership on climate change will send a strong market signal on the future of renewables in Indonesia, enhance Indonesia’s geopolitical standing, drive sustainable economic growth, and encourage substantial skilled job creation, the letter continued.
RE100 Letter to His Excellency President Joko Widodo
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Date added: 13/09/24
“At COP28, more than 130 countries pledged to triple installed renewable energy capacity by 2030, including many of Indonesia’s neighbours and competitors. For Indonesia, it’s time to act on renewable electricity. Doing so will help the country stay competitive. Large global businesses are looking for more ambition and greater investment in renewables in Indonesia, so that they can confidently up their investment in renewables in support of their RE100 targets. With Indonesia’s National Energy Plan being confirmed in October, this is a critical time to make or break Indonesia’s commitment to net zero,”
“At COP28, more than 130 countries pledged to triple installed renewable energy capacity by 2030, including many of Indonesia’s neighbours and competitors. For Indonesia, it’s time to act on renewable electricity. Doing so will help the country stay competitive. Large global businesses are looking for more ambition and greater investment in renewables in Indonesia, so that they can confidently up their investment in renewables in support of their RE100 targets. With Indonesia’s National Energy Plan being confirmed in October, this is a critical time to make or break Indonesia’s commitment to net zero,”
