ENERGY TRANSITION THEMES
Industry Decarbonisation
Indonesia, as ASEAN’s largest economy, is pursuing its Vision 2045 to become a fully industrialized and environmentally sustainable nation. Industry remains central to economic growth, contributing significantly to GDP, exports, and investment. However, it also accounts for a quarter of national emissions. Targeting a 9 million ton CO₂e reduction in the IPPU sector, Indonesia is encouraging energy-efficient and low-carbon industrial practices, aligned with global climate commitments and mechanisms such as CBAM.
ENERGY TRANSITION THEMES
Sustainable Energy Finance
Indonesia has made ambitious climate and energy transition commitments, including Net Zero by 2060 and enhanced NDCs. However, financing remains a key barrier. The Ministry of Finance estimates over IDR 3,500 trillion (USD 246 billion) is needed—far beyond current support such as the JETP pledge.
GIZ supports the Government of Indonesia in developing a robust financing ecosystem that leverages fiscal reforms, de-risking tools, and public-private integration to mobilize meaningful investment in clean energy
Our Mission
GIZ supports the Government of Indonesia in preparing a financing framework for the energy transition through fiscal policy reform, designing implementable financial instruments, and setting up the necessary de-risking facilities to catalyse private investments for supporting the energy transition.
Overall Objective of Thematic Area
What We Do
Implementation Approach
Policy Advisory
Support to reform energy fiscal and finance policies, alignment on energy and carbon finance mechanism, tax reform, enabling environment that mobilises private sector
Integrating Public and Private Financing
We support the development of blended finance frameworks and conduct systematic studies that bridge public and private financial instruments. This includes designing de-risking mechanisms and piloting innovative finance tools to attract private investment into the energy transition.
Capacity Building
We provide tailored workshops and training sessions for regulators, investors, financiers, and project developers. These activities aim to build institutional knowledge, improve financial literacy, and promote best practices in sustainable energy financing
Enabling Dialogue and Project Matchmaking
We organize structured dialogues and matchmaking events that connect stakeholders—such as regulators, financial institutions, and project developers—to build trust, accelerate deal pipelines, and encourage collaboration across sectors.
Contribution to National Targets
Supporting the implementation of NZE 2060 roadmap, achieving 44% renewable energy by 2030 under JETP, advancing Vision 2045, enabling industrial decarbonization by 2050, and operationalizing Presidential Regulations No. 98/2021 and 112/2022
Project List
Our Project
PERFORM
Performing Energy Transition through Fiscal Reform
Performing Energy Transition through Fiscal Reform
- Commissioned by: Federal Ministry for Economic Cooperation and Development
- Regional Focus:Indonesia
- Volume: 5 Million EUR
- Political Patner: Ministry of Finance (Fiscal Policy Agency – BKF, Directorate General of Taxes – DJP), Indonesia Environment Fund (BPDLH), PT Sarana Multi Infrastruktur (PT SMI), national universities
- Overall term: 2023–2027
Case
Clean, Affordable and Secure Energy for Southeast Asia (CASE) – Indonesia Component
Clean, Affordable and Secure Energy for Southeast Asia (CASE) – Indonesia Component
- Commissioned by: Federal Ministry for Economic Affairs and Climate Action, International Climate Initiative
- Regional Focus: Indonesia (ASEAN)
- Volume: 5.18 Million EUR
- Political Patner: Bappenas, EBTKE & DJK, DEN, OJK, Kemenko Perekonomian, SOEs, local governments, donors, ac ademia, NGOs
- Overall term: 2020 to 2027
Impact Stories
Local Heroes, Global Goals
Strategic Steps Toward Industrial Decarbonisation
Implementation Approach
We are the first company to connect a private solar power plant to the "green" tariff in the city
News and Events
Latest Updates in Indonesia’s Energy Transition
Thematic Partners
National Partners & Collaboration
