Video: Prabowo Drives Energy Transition, Is Banking Finance Adequate?

The Financial Services Authority (OJK), in its support for accelerating Indonesia’s energy transition, continues to encourage the development of sustainable financing, primarily in business sectors that generate emissions, including energy, manufacturing, transport, agriculture, and forestry.

Assessing the role of the banking sector in driving sustainable financing for clean energy, Luthfyana K. Larasati, Senior Manager at the Climate Policy Initiative, noted that the banking sector has begun entering the energy transition sector over the last 5-7 years, although this progress is not yet uniform. Currently, large-cap banks have initiated policies related to the sustainable sector, specifically through green bonds and sustainability bonds.

Meanwhile, Agung Budiono, Executive Director of the Yayasan Indonesia Cerah, stated that the banking sector has significant opportunities to drive financing for the accelerated energy transition, such as the 100 Gigawatt Solar Power Plant (PLTS) project. At present, the liquidity, asset quality, and expansion capacity of banks remain very large for entry into the New and Renewable Energy (EBT) sector.

However, CERAH highlighted that while investment credit is growing at a high rate, it is being driven more by the mining and processing industry sectors rather than the renewable energy sector.

What, then, are the prospects and challenges in encouraging banking finance to enter the energy transition sector? For more details, watch the dialogue between Andi Shalini with Luthified K. Larasati, Senior Manager of the Climate Policy Initiative, and Agung Budiono, Executive Director of Yayasan Indonesia Cerah, on Power Lunch, CNBC (Monday, 31/08/2026).