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Cleantech market  in Indonesia

Industry highlights

23%

Target renewable energy contribution to Indonesia's

energy mix

#67

Indonesia's ranking in the 2020 Global FDI Attractiveness Index

$ 1.51b USD

Investment for renewable energy projects in 2021

#24

Indonesia's ranking as Canada's trading partner in terms of trading value in 2021.

#73

Indonesia's ranking in World Bank's Ease of Doing Business in 2020

#698

Canadian companies exported merchandise in 2020

$2.2B

Total value of merchandise  exports in 2021

Indonesia is the largest economy in Southeast Asia with an average annual gross domestic product (GDP) growth of 5% over the last decade. The country is one of the largest greenhouse gas (GHG) emitters and has a set target to reduce emission by at least 29% by 2030. It has also announced a coal-fired power plant (CFPP) retirement program for 2040 with the ultimate goal to reach Net Zero emission by 2060. The energy sector will contribute to 50% of total emission reduction (150 m tons CO2 equivalent). Of this number, 60% will come from new renewable energy (RE) power plants, 30% from transportation (biofuel utilization) and the rest from the utilization of biofuel in the industrial sector.

Key opportunities for Canadian cleantech companies in Indonesia:

Notable challenges for Canadian cleantech companies in Indonesia:

Indonesia business landscape:

Upcoming projects and events

Summary

With the Indonesian government setting up new, stronger commitment for climate action and energy transition in 2021, it is expected that there will be better prospects for clean energy projects in the year ahead. Major policies such as the net-zero emission target, CFPP moratorium, and carbon price implementation, provide a solid base for energy transition. Highly anticipated regulations will potentially improve the investment climate next year such as:

For more information on the cleantech sector in the Indonesia market please contact jkrta-td@international.gc.ca.

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