Climate Group: Indonesia Has Opportunity to Accelerate Renewable Energy Adoption
Sam Kimmins, Director of Energy at Climate Group, stated that Indonesia has a significant opportunity to accelerate renewable energy adoption through the RE100 initiative. However, he noted policy challenges still hinder companies from directly accessing green power.
“There are 133 international members of our organisation operating in Indonesia,” Kimmins said during the Climate Group Asia Action Summit in Singapore on Thursday, 21 May 2026.
Kimmins said Climate Group is currently exploring opportunities with Indonesian companies to join the RE100 campaign, a global initiative where companies commit to using 100% renewable electricity.
He added that the RE100 approach in each country involves local organisations. In Indonesia, Climate Group collaborates with the Institute for Essential Services Reform (IESR) to introduce the scheme to businesses and government.
Kimmins explained that local organisations play a crucial role as they understand local policy conditions and can bridge communication with the government. He said the Indonesian government is open to discussions on renewable energy development and green investment mechanisms.
He stated that a key challenge in Indonesia is the lack of a mechanism allowing independent renewable energy producers to sell electricity directly to companies via the PLN grid. Power purchase agreements (PPAs) are vital to lower green electricity prices and open up private financing for renewable projects.
According to Kimmins, Climate Group is currently discussing with the government a shared grid system so independent developers can channel renewable electricity to corporate customers through PLN’s network. This arrangement would benefit all parties as PLN would still earn transmission fees, while developers gain assured buyers.
Beyond grid access issues, Kimmins highlighted Indonesia’s fossil fuel subsidies. He argued subsidies make conventional energy appear cheaper, hindering renewable competitiveness. Despite lower production costs for renewable electricity, market price signals are not fully reflected due to support for the existing energy system.
Kimmins believes Indonesia’s energy market would be more competitive with reduced regulatory barriers. He stated Climate Group generally does not advocate for additional subsidies for renewables but supports opening market access so clean energy can compete naturally.