Indonesia is positioning itself at the forefront of the global renewable energy transition under the leadership of President Prabowo Subianto. In a significant announcement during the G20 Summit in November 2024, President Prabowo unveiled an ambitious plan to phase out all coal-fired and fossil fuel power plants within the next 15 years, aiming for net zero emissions by 2050—ten years ahead of the previous target.

Central to this vision is the development of over 75 gigawatts (GW) of renewable energy capacity, leveraging Indonesia's abundant geothermal, solar, wind, and hydropower resources.

This initiative aligns with the government's broader strategy to accelerate economic growth to 8% and achieve energy self-sufficiency within five years.

Despite these ambitious plans, Indonesia faces significant challenges in meeting its renewable energy targets. The nation had set a goal to increase the share of renewables to 23% of the national energy mix by 2025. However, as of 2023, the share of renewable energy in the electricity mix was only 13.1%, falling short of the interim target of 17.9%.

This shortfall has prompted discussions about revising the 2025 target to between 17% and 19%.

To bridge this gap, the Indonesian government is encouraging greater private sector involvement in power generation. Energy Minister Bahlil Lahadalia announced plans for 60% of new power plants to be developed by private investors, with the government focusing on building 48,000 circuit kilometers of transmission lines to support renewable energy distribution.

However, experts caution that achieving these goals will require substantial policy reforms and increased investment in renewable energy infrastructure. The International Energy Agency emphasizes the need for system-wide changes, including eliminating policies that favor fossil fuels and enhancing clean energy infrastructure. Significant financial investments, estimated at over $1.2 trillion by 2050, are also crucial to meet these targets.

In conclusion, while Indonesia's commitment to renewable energy under President Prabowo's leadership is commendable, realizing these ambitious targets necessitates a concerted effort involving policy reforms, private sector participation, and substantial financial investment. The nation's progress in the coming years will be pivotal in determining its role as a leader in the global renewable energy transition.