Climate Group\u2019s Energy Director, Sam Kimmins, believes Indonesian\nindustrial zones have strong interest in renewable energy use, though\nimplementation is hindered by costs and government policies. He states\nthat the high cost of renewable energy in Indonesia stems from a policy\nenvironment that does not support direct corporate investment in clean\nenergy projects.<\/p>\n
This situation makes developers struggle to secure low-cost\nfinancing, keeping renewable electricity prices high. \u2018The reason\nrenewable energy is more expensive than it should be is due to the\npolicy environment. If companies can\u2019t make direct investments, it\u2019s\nhard to lower prices,\u2019 Kimmins said during the Climate Group Asia Action\nSummit in Singapore on Thursday, 21 May 2026.<\/p>\n
Kimmins said Climate Group aims to drive change by developing\nrenewable energy-based industrial zones. Green electricity demand in\nthese zones is rising due to export and global supply chain\nrequirements, including the EU\u2019s Carbon Border Adjustment Mechanism\n(CBAM).<\/p>\n
Kimmins added that renewable energy adoption would boost the appeal\nof Indonesian industrial zones to global firms such as Nike, Adidas, and\nNew Balance and their suppliers. He explained many suppliers in\nIndonesia work for multiple brands, making it difficult to build their\nown renewable infrastructure.<\/p>\n
He noted that developing renewable energy at the industrial zone\nlevel could resolve this issue, as companies can simply purchase green\nelectricity provided by the zone managers. Kimmins also mentioned the\nRE100 campaign\u2019s progress in various countries, stating success often\nbegins when one local company joins, followed by others seeing that a\nclean energy transition is feasible.<\/p>\n
Kimmins said the process happens quickly in some countries\u2014within\nweeks\u2014while others take months or years. He also noted that 122 RE100\nmember companies are currently purchasing renewable electricity in\nIndonesia.<\/p>\n
Kimmins stated that multinational RE100 members can transfer\nknowledge to Indonesian firms on purchasing renewable electricity and\nbuilding low-emission supply chains. He believes the larger the RE100\nmovement, the greater companies\u2019 confidence in switching to clean\nenergy.<\/p>\n
Additionally, Kimmins viewed Indonesia\u2019s commitment to 100 gigawatts\nof renewable energy as a positive signal for investors. He said\ncompanies need assurance that the government is moving and responding to\nmarket needs, citing LEGO\u2019s decision to build facilities in Vietnam\npartly due to power purchase agreements and shared grid access\nthere.<\/p>\n
Kimmins said access to renewable electricity is now a critical factor\nin global companies\u2019 investment decisions. Therefore, the government\nmust act swiftly to keep Indonesia competitive as an international\nsupply chain investment destination.<\/p>\n
However, he noted Indonesia\u2019s government is open to energy transition\ndiscussions. Kimmins said there is constructive dialogue and willingness\nto drive change, though reforming a decades-old fossil fuel-dependent\nenergy market is no easy task.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/two-barriers-to-renewable-energy-adoption-in-indonesia-1780328702", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }