NTB Explores Green Sukuk to Finance Renewable Energy Infrastructure
The West Nusa Tenggara (NTB) provincial government is exploring the issuance of green sukuk as an alternative source of financing for the development of renewable energy infrastructure to reduce dependence on the regional budget (APBD) or the national budget (APBN). Secretary of the Energy and Mineral Resources (ESDM) Office of NTB, Niken Arumdati, stated that the government is partnering with Bank NTB Syariah to issue the green sukuk. “Why regional bonds? Because we want to explore financing schemes outside of the APBN and APBD for renewable energy development,” she said in a statement in Mataram on Wednesday (6/5/2026). Niken believes that issuing green sukuk can open up investment opportunities and accelerate clean energy development projects that have so far been hampered by financing issues. The involvement of local banks in issuing green sukuk is expected to attract investors interested in sustainable and environmentally friendly financing in West Nusa Tenggara. “The contribution of new renewable energy in NTB is currently around 25 percent. Meanwhile, the rest is still dominated by fossil energy from coal, oil, and gas,” said Niken. The NTB ESDM Office records that the capacity of renewable energy continues to grow in West Nusa Tenggara. The installed capacity of grid-connected solar power plants (PLTS) reaches 21.6 megawatts. Then, off-grid PLTS managed by the mining industry reaches 26.8 megawatts and the existence of micro-hydro power plants (PLTMH) at 18.5 megawatts. Niken revealed that the geothermal energy potential is also being developed in the Hu’u area, Dompu Regency. The estimated electricity capacity generated from the project reaches 65 megawatts. “The permit for geothermal energy development has been obtained since March 2025,” she concluded. The NTB government targets that accelerating the development of renewable energy infrastructure can drive regional energy independence while strengthening its position as a green energy centre in central Indonesia.