BKPM's Strategy to Make Renewable Energy Investment Cheaper and More Attractive

Deputy Minister for Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, confirmed the government’s efforts to encourage the expansion of investment and downstream processing into the mineral and coal, oil and gas, fisheries and marine, as well as agriculture and plantation sectors, along with new and renewable energy (EBT).

The Ministry of Investment/BKPM views non-mining sectors as a source of sustainable economic growth for Indonesia, including agriculture and maritime industries. One of the non-mining downstream products being promoted is palm oil, which is being developed into diesel, alongside the development of bioethanol from the downstream processing of plantation products such as maize, cassava, sugar palm, and sugarcane.

The increase in investment and downstream processing is not only aimed at boosting industrial growth but also at its impact on job creation and driving the economy, particularly in non-mineral sectors. Throughout 2025, investment and downstream activities are expected to absorb more than 2.5 million to 3 million workers while simultaneously enhancing the skills of the domestic workforce.

On the other hand, BKPM is also promoting investment and downstream processing in the green energy sector through strategies to address the challenge of high investment costs. To attract investment in the New and Renewable Energy sector, regulatory strengthening, licensing ease, market development, and fiscal incentives are required.