Indonesia lags behind in renewable energy investment

Four years on from the historic Paris climate conference, Indonesia is still struggling to raise investment to develop renewable energy. Experts say the blame lies partly with government regulations, which stunt the development of renewable energy in Indonesia. Since 2017, Fabby Tumiwa, executive director of the Institute for Essential Services Reform (IESR), a Jakarta-based sustainability think tank, has observed renewable energy capital flight from Indonesia. “The regulations do not reflect the business model of renewable energy projects; the price is not so attractive; [there is] unequal risk-sharing between PLN and the developers, so [investors] all flee,” said Fabby. On the one hand, Indonesia is likely to meet its Paris Agreement targets, but only because the goals were very unambitious to begin with. Such an effort would still be insufficient to curb climate chan...