BKPM: Green Energy Projects Become Magnet for Global Investors, Indonesia to Accelerate NZE to 2050

The Indonesian government is increasingly serious about positioning itself as a major player in the global green economy. The Minister of Investment and Downstreaming/Head of BKPM, Rosan Roeslani, revealed that New Renewable Energy (EBT) programmes are now the primary magnet attracting significant interest from foreign investors to inject capital into the country.

According to Rosan, the current enthusiasm from overseas investors is closely aligned with the government’s environmental sustainability policies. This was stated during a press conference at the Ministry of Investment/BKPM office in Jakarta on Thursday (23/4/2026).

“The existing programmes are in line with their investment appetite. This alignment of vision is what is driving the upward trend in green sector investments,” said Rosan.

One crucial bargaining point for Indonesia is its more aggressive climate ambition. Rosan explained that the government is committed to accelerating the Net Zero Emission (NZE) target. Previously set for 2060, President Prabowo Subianto is pushing for acceleration so that the zero carbon emission target can be achieved by 2050.

Concrete steps to achieve this target are already being implemented, including the acceleration of converting Diesel Power Plants (PLTD) to Solar Power Plants (PLTS) across remote areas of Indonesia. As well as utilising geothermal energy through a Japanese investment project in Aceh worth US$900 million. This project has reached financial closing and begun construction since 2025.

Interestingly, Rosan emphasised that the government is no longer viewing the size of the investment value as the sole parameter for providing stimulus or incentives. The government now prioritises social impacts, particularly in terms of local job absorption.

“Our parameters are not solely because the investment value is large. We also look at how far that investment can absorb local labour,” he stressed.

As an illustration, Rosan mentioned that the government has given the green light to a coconut industry investment in Morowali worth US$100 million. Although its value is not as large as primary energy projects, this project is considered strategic because it can create jobs for 10,000 people.

With a combination of political stability, progressive green policies, and targeted incentive schemes, Indonesia is optimistic about maintaining the momentum of quality investment growth in the future.