Home Blog 5 Facts About Renewable Energy Investments in Indonesia Business Licenses | Business Setup 5 Facts About Renewable Energy Investments in Indonesia InCorp Editorial Team 25 June 2025 4 minutes reading time Table of Contents The Challenges Behind Renewable Energy Investments 5 Facts about Renewable Energy in Indonesia Energy Investments for Indonesia’s Economy Indonesia shows great intent to transition to renewable energy through various attempts and strategic moves, one of which has been explicitly mentioned by President Joko Widodo, also known as Jokowi. Jokowi has invited G7 countries to invest in Indonesia to smoothen the energy transition plan that spans the next eight years. He continues to emphasize and promote the extraordinary potential of Indonesia below the sea and earth within the Indonesian territory. Retno Marsudi, the Minister of Foreign Affairs, has shared that Indonesia has an apparent and concrete commitment to tackle climate change through the energy transition. She further goes on to share that large amounts of investment are needed to fully recognize Indonesia’s potential. Alongside this, technology transfer is also integral in ensuring success. Thus far, the President elucidates that the transition optimization will help to enhance economic growth, open up business opportunities, and create new jobs. Furthermore, Jokowi has also held at least nine bilateral meetings with various countries, including India, France, and Germany. He has also met with British Prime Minister Boris Johnson, Canadian Prime Minister Justin Trudeau, Japanese Prime Minister Kishida Fumio, and IMF Managing Director Kristalina Georgieva. The Challenges Behind Renewable Energy Investments One of the primary obstacles in transitioning to green energy is the economic value. In terms of investment, energy projects are not economically justified. Due to this, investments in this sector are not as attractive as those in other sectors. Therefore, to ensure that the transition continually occurs, a partnership is an integral part. This is seen through several pilot projects that have begun in Indonesia by big Asian companies. The green industry and projects cannot be treated as usual projects and need special attention in their development. The government can realize the development as Indonesia’s economy progresses and its GDP rises. Consumers can therefore absorb clean energy. Plans of exporting green energy are also in motion despite the products not being cheap yet. The realization target sets for the next 5 (five) years. 5 Facts about Renewable Energy in Indonesia 1. Serious Steps for Transition There are 24 Indonesian provinces that have completed the Regional Energy General Plan. Aside from that, three provinces are also in the process of registering the legislation. One region is currently in discussion with the Ministry of Home Affairs. At the same time, the other three provinces have just started talks with the Regional House of Representatives. 2. Overcoming Challenges The global energy supply is currently disrupted due to current socio-political conflicts that continue to occur. There is a high importance placed on protecting the regional supplies in various regions. 3. Strong Conditions of the Renewable Sector Indonesia is strategically located on the equator, which means that the nation is exposed to abundant sunlight. Indonesia has a lot of wind energy that can be captured by wind power plants and converted into electricity. Indonesia also has a surrounding coastline which can also be developed into electricity. 4. Green Bonds The Indonesian government issued regulations on the usage of greed bonds in 2017, followed by the issuance of the bonds for USD 3 billion in 2018. 5. Low Capacity Green Energy Utilization Indonesia has an abundance of alternative capacity due to the large reserves of geothermal, solar, and wind energy. However, the utilization levels remain low. An example can be seen through Indonesia’s geothermal energy reserves, which have reached 400 gigawatts, but a mere 2.5% has been utilized so far. Energy Investments for Indonesia’s Economy Jakarta is said to have considerable potential from utilizing and managing waste that is then transformed into electricity. The demand for power and electricity in Indonesia continues to increase as the economy grows. The Head of Socio-Economic and Policy at the International Renewable Energy Agency (IRENA) reveals that there is a dire need for policies to be holistic such that they are focused on deploying renewable technology and integrating it with transitional policies and the civil society. InCorp Indonesia (an Ascentium Company) is a one-stop center for all your business needs. The professionals in InCorp are capable and experienced in helping various businesses secure their business licenses and import license, which are vital for operations. Read Full Bio Verified by Daris Salam COO Indonesia at InCorp Indonesia With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships. Frequently Asked Questions How do investors choose a holding jurisdiction for a PMA firm in Indonesia? Investors considering investments in Indonesia should assess existing International Investment Agreements between Indonesia and other countries. Having a business presence in countries with such agreements may offer incentives like stronger investment protection and higher foreign shareholding in Indonesia. What kind of license does a PMA company need to get? In Indonesia, the licensing system has been updated with the implementation of the Omnibus Law. Businesses are categorized into four risk levels based on the PMA company classification. Licensing requirements vary accordingly, with three main types: Business Identification Number (NIB) Low-risk businesses needing only an NIB Standard Certification Standard Certification is necessary for medium-low and medium-high-risk businesses Licenses/Permits High-risk businesses require licenses/permits Additionally, basic requirements, including business location, must be met. Many licensing processes are facilitated through the Online Single Submission (OSS) platform managed by the Investment Coordinating Board (BKPM). What is the minimum shareholder requirement to incorporate a PT? The minimum number of shareholders to incorporate a PT is two Can a foreigner form a CV? A foreigner is not allowed to form a CV in Indonesia Get in touch with us. Lead Form Updates Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Mergers and Acquisitions Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit What you’ll get A prompt response to your inquiry Knowledge for doing business from local experts Ongoing support for your business Disclaimer The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Business Licenses Does Every Business Setup in Indonesia Require Shareholders? Read more 6 Key Insights on Indonesia’s Mining Industry Read more Bonded Zones in Indonesia: Tax and Trade Benefits for Businesses Read more