JAKARTA (RambuEnergy) – IFC, a member of the World Bank Group, and the Government of Indonesia are working together to significantly accelerate renewable energy investment and development in the country. The multilateral agency is looking to increase its exposure in renewable sector, including in Indonesia.
“IFC is increasing its support and mobilization efforts for climate-smart projects and remains an active supporter of Indonesia’s energy and infrastructure development,” said Vivek Pathak, IFC Regional Director for East Asia and the Pacific.
“By embracing innovation and inviting private sector investment, the world’s largest archipelago has the potential to build a pipeline of sustainable and diverse projects that will underpin this strong, growing economy,” he said.
As part of the drive, IFC hosted a symposium, entitled ‘Transformational Business Day: Indonesia Energy, Gas & Renewables’ for industry experts and policymakers.
Over 100 regulators, market practitioners, policymakers, investors, and executives gathered to take part in the knowledge-sharing event to develop new partnerships, leverage opportunities, and accelerate Indonesia’s fast-growing market for renewable energy transactions.
The symposium is IFC’s first Voyage to Indonesia event, which is part of a collaborative program organized by the government of Indonesia, the International Monetary Fund (IMF), and the World Bank Group, in the lead up to the 2018 IMF-World Bank Group Annual Meetings in Bali.
Indonesia is home to some of the planet’s most abundant resources, including 40% of the world’s geothermal reserves. Though Southeast Asia’s largest economy has been struggling to unleash its clean energy potential, it has set an ambitious energy target, aiming for renewables to generate 23 percent of the country’s power by 2025.
Today, renewables account for 5% of its energy mix. To scale up growth across the renewable energy sector, the country needs greater private sector investment.
IFC, the largest global development institution focused on the private sector in emerging markets, is one of the leading renewable energy investors in the world and has played a key role in the development of Indonesia’s renewable energy sector, removing regulatory and environmental constraints, financing several major projects, encouraging private investment, and pioneering innovative financing models.
“IFC is committed to creating markets and crowding-in private investment to unlock and scale up renewable energy projects in Indonesia,” said Azam Khan, IFC Country Manager for Indonesia, Malaysia and Timor-Leste. “Globally, we have seen how private business can help spur development and investment in clean energy opportunities, and renewables in Indonesia remains one of our key priorities.”
Globally, over the past decade, IFC has invested $18.3 billion of its own funds in long-term financing for climate-smart projects and mobilized an additional $11 billion from other investors. Through these investments, IFC has developed expertise in key climate markets including solar, hydropower, wind, energy storage, green buildings, and waste-to-energy. (*)