Indonesia’s renewable energy sector is experiencing unprecedented growth as the government intensifies efforts to reach its 23% clean energy target by 2030. Investment in solar, geothermal, hydro, and biomass projects reached a record $4.8 billion in Q1 2025, signaling strong market confidence in the country’s green transition.
The Ministry of Energy and Mineral Resources recently announced enhanced incentives for renewable projects, including guaranteed power purchase agreements, tax holidays of up to 15 years for qualifying developments, and simplified land acquisition procedures.
Particularly promising opportunities exist in Indonesia’s eastern regions, where abundant solar and geothermal resources coincide with growing industrial and residential demand. The government has designated 12 priority renewable energy zones with pre-approved environmental assessments to accelerate project development.
“Indonesia offers a rare combination of resource abundance, supportive policies, and rapidly growing energy demand,” notes Budi Santoso, Energy Investment Specialist at ProSpace Indonesia. “We’re seeing strong interest from international developers and equipment suppliers looking to participate in this dynamic market.”
For comprehensive guidance on renewable energy investment opportunities, contact ProSpace Indonesia at +62 877 8887 7678 or email info@prospaceindonesia.com. Follow @prospace.indonesia on Instagram for updates on Indonesia’s evolving energy landscape.