Govt Boosts Low-Emission Industry & Transportation to Achieve 2060 NZE Target

RRI.CO.ID, Jakarta – The Indonesian government is committed to fostering low-emission industries and the transportation sector to achieve the Net Zero Emissions (NZE) target by 2060. This strategic move is intended to maintain high national economic growth while attracting the attention of global investors in Southeast Asia’s green energy transition.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, made this statement at The Big Idea Forum in Jakarta on Wednesday, August 26, 2026. According to him, Indonesia’s economic growth in the first half of 2026 reached 5.45 percent, with inflation remaining low.

“Economic growth in the first half of the year was already at 5.45 percent. Compared to other ASEAN countries or G20 nations, Indonesia ranks among the top three. And we’ve been able to achieve high growth with low inflation,” he said, as quoted from a written press release issued by the ministry on Thursday, August 27, 2026.

To support this economic sustainability, the government is diversifying domestic energy sources by expanding the use of the Biodiesel 50 (B50) program. This energy policy is expected to reduce dependence on fossil fuel imports while curbing domestic inflationary pressures.

The government is also continuing to strengthen the national automotive industry ecosystem through the development of electric vehicle production, batteries, and locally manufactured components. These efforts to improve the ecosystem are expected to increase domestic value added, given that the industrial sector contributes approximately 18 to 19 percent to the economy.

“As the prices of unsubsidized fuel fluctuate, the public is also realizing that using electric vehicles (EVs) will save them money. Consequently, in the first half of this year, the growth rate of hybrid vehicles increased by 40 percent compared to last year. This is an excellent figure, indicating that the public is becoming more aware of the benefits of using electric power,” the Coordinating Minister stated.

To ensure that all investment initiatives proceed smoothly, the government has established a special task force to help resolve various obstacles faced by investors. The existence of this task force demonstrates Indonesia’s commitment to maintaining a healthy investment climate in line with the targets of the Paris Agreement.