Indonesia Eyes Bigger Share of Global Energy Transition Investment

RRI.CO.ID, Jakarta – Indonesia could get a larger share of global energy transition investments. The Indonesian Chamber of Commerce and Industry (Kadin Indonesia) considers green industrialization to be the key to turning that potential into investment and domestic value added.

Global investment in the energy transition is projected to reach a record USD 2.3 trillion by 2025, with the Asia-Pacific region accounting for nearly half of that total. Meanwhile, a study on Indonesia’s path to net zero estimates that national investment needs and opportunities will reach USD 3.8 trillion by 2050.

“The energy transition is increasingly becoming a key agenda for economic competitiveness, energy security, and industrial strategy, and this is crucial for Indonesia,” said Chairman of Kadin Indonesia, Anindya Bakrie, in his statement in Jakarta on Monday, October 5, 2026, as quoted by Antara.

According to Anindya, investment opportunities remain open despite increasing geopolitical uncertainty and shifting trade patterns. Indonesia possesses critical minerals, renewable energy potential, a large domestic market, and advancements in electric vehicles (EVs), batteries, biofuels, and geothermal energy.

“These factors form a strong foundation for Indonesia to increase value-added and build higher-value industries with lower carbon emissions domestically,” said Anindya.

Anindya urged Indonesia to transition from a raw-materials supplier to a hub for green industrialization. Reliable, affordable, and low-carbon energy is considered crucial for attracting investment, strengthening industries, and creating jobs.

Another challenge lies in financing. Kadin Indonesia assesses that the gap between available capital and projects ready for financing needs to be narrowed through regulatory certainty, credible projects, infrastructure, and large-scale financing schemes.

“This is what makes collaboration between the government and the private sector so crucial,” said Anindya.

Kadin Indonesia also promotes the Indonesia Incorporated concept, which brings together the government, state-owned enterprises (SOEs), the private sector, investors, financial institutions, and international partners to accelerate investment in the energy transition. ***