Industrial energy storage project financing options in Indonesia 2026

What is the project financing landscape in Indonesia?

The project financing landscape in Indonesia continues to evolve, with a stronger emphasis on sustainability, regulatory improvements, and innovative financial structures. The market has seen a shift towards green energy projects, more defined local content requirements, and increased involvement from multilateral agencies.

Why is Indonesia focusing on energy transition and infrastructure development?

Despite global economic challenges, including rising interest rates, Indonesia’s focus on energy transition and infrastructure development has opened up new opportunities ‒ particularly in renewable energy, social impact projects, and digitalisation in financing mechanisms. Rise of green and sustainable financing

Is Indonesia a market in the energy transition?

Indonesia is a market in the energy transition as the country is moving from fossil fuels to clean energy resources. In 2023, Indonesia derived approximately 60% of its energy from coal, while renewable energy’s contribution is estimated at about 15%.

Does Indonesia need more financing for green energy projects?

This highlights that much of the GSS+ bonds issued both by the government and private sector in Indonesia are primarily directed towards the energy sector. The evolving policy landscape in Indonesia further underscores the urgent need for increased financing in green energy projects.

Why is battery energy storage system important in Indonesia?

However, given the challenge of Indonesia’s geological landscape, with many off-grid and remote areas, there is growing intermittency issue that hamper the development of solar and wind generation. Hence, the battery energy storage system (BESS) technologies have a critical role in the development of Indonesia’s renewable energy.

How is Indonesia transforming the energy sector?

Indonesia has initiated its energy transition in the electricity sector by increasing clean energy power plants and planning early retirement of 15 CFPPs, with a total capacity of 4.8 GW, by 2030 (Antaranews, 2023).