OECD: Indonesia Could Become A World Leader in Clean Energy

A recent report released by the Organization for Economic Co-operation and Development (OECD) mentioned that Indonesia could become a world leader in clean energy development with further reforms to mobilize investment in renewables and energy efficiency. The OECD Clean Energy Finance and Investment Policy Review of Indonesia stated that Indonesia’s abundant and untapped financial and investment potential in renewables and energy efficiency. Indonesia’s key sectors are also important to accelerate the green energy transition and support sustainable recovery from the COVID-19 crisis.

The OECD stated that reforms to create a clear and consistent regulatory environment for renewables, such as competitive tenders to encourage healthy competition and cut costs, could fix the investment shortfall. The recent introduction of the country's first energy performance standard should improve the further uptake of efficiency solutions.

"The clean energy sector will play a crucial role in supporting Indonesia's green recovery," OECD Secretary-General, Mathias Cormann, stated when presenting the report virtually on Monday (6/28). Cormann said that a sound, transparent, and predictable regulatory environment is key to attract hundreds of billions of dollars of private investment. Such an investment could drive Indonesia’s clean energy transition and broad green recovery.