Jakarta, September 29, 2025 – Indonesian Finance Minister Purbaya Yudhi Sadewa expressed his confidence that Indonesia can achieve 8% economic growth, in line with President Prabowo’s vision and mission. Responding to this optimism, Fabby Tumiwa, CEO of the Institute for Essential Services Reform (IESR), emphasized that Indonesia needs to invest significantly in the renewable energy sector to achieve high economic growth. Fabby emphasized the importance of smart and planned investment through the development of a domestic renewable energy industry.
“Indonesia must focus on local production and not rely solely on imported technology such as solar panels and batteries. If Indonesia continues to rely on imports, other countries will reap the benefits. We need to encourage the growth of the domestic renewable energy industry so that the energy transition envisioned by the president can be realized,” Fabby said in the GASPOL Kompas.com podcast broadcast on Saturday (September 27).
Fabby highlighted that several countries, such as Vietnam, have demonstrated that significant targets in the energy transition can be achieved in a short time. Vietnam has successfully built 15-20 gigawatts of solar energy capacity in just one year. Reflecting on this situation, Indonesia, as a tropical country with significant potential for financially viable renewable energy projects, estimated at around 333 GW, according to an IESR study, can also achieve a similar target, particularly by building modular solar power plants (PLTS) that can be installed in various locations.
“Vietnam has succeeded in building significant renewable energy capacity thanks to supportive policies, such as providing incentives for solar energy use. Furthermore, they have opened up access to the electricity grid to make it easier for renewable energy developers to sell their electricity to the national grid. This policy is implemented through Direct Power Purchase Agreement (DPPA) contracts, which allow electricity consumers to purchase electricity from renewable energy sources. Indonesia can learn from Vietnam’s policy and create similar policies that can support the development of solar energy and other renewable energy sources domestically,” Fabby explained.
Furthermore, Fabby emphasized the need for the government to decide on the right steps today to realize Indonesia as a developed nation, fully utilizing renewable energy, and achieving Net Zero Emissions (NZE) by 2050. He stated that in addition to strengthening political commitment, detailed, thorough planning, including public involvement, is also necessary. The government must consider how to gradually replace fossil fuels with renewable energy to mitigate the socio-economic impacts.
“The biggest challenge is the political and economic changes that will occur on the path to the energy transition. Many sectors will be affected, including the coal industry, which has been a source of state revenue. Therefore, a mature and coordinated strategy is needed to manage this transition without causing socio-economic shocks,” Fabby emphasized.