Indonesia faces challenges in transitioning to a low-carbon economy. It is estimated that Indonesia’s energy transition needs will reach USD 20-40 billion per year by 2050. However, the current realisation of funding is significantly lower, with only USD 1.47 billion invested in new and renewable energy in 2023. Indonesia’s success in achieving its net-zero emissions goal will depend on its ability to overcome these obstacles and accelerate its energy transition.
The assessment of financing needs for a fast and fair energy transition is especially important ahead of the upcoming NDCs update. In this report, Indonesian Climate Transparency partner, Institute for Essential Services Reform (IESR), examines the current state of climate finance and the progress of policy implementation in their country.
This publication is a part of a series of national papers that analyse the status of climate finance regulations and exploring existing gaps in implementation in Indonesia, Argentina, Mexico and Brazil with support by the Climate Emergency Collaboration Group.