JAKARTA — The United Nations in Indonesia is collaborating with the Indonesian government on initiatives to support national renewable energy targets. This partnership encompasses grid modernization, industrial efficiency improvements, clean financing mechanisms, and the development of community-based solar projects.

Indonesia aims to add nearly 43 gigawatts of renewable energy capacity by 2034. Achieving this target could require up to $188 billion in investment. The United Nations Development Programme is working with the government to develop innovative financing mechanisms, including blended finance approaches, to help meet this investment need.

Several United Nations agencies are involved in specific aspects of this effort. The United Nations Office for Project Services is collaborating with the state-owned electricity company PLN to identify over two gigawatts of solar energy potential for grid connection and has also supported energy-efficiency audits and policy reforms. The United Nations Industrial Development Organization is assisting energy-intensive industries in Indonesia to reduce energy consumption and improve productivity. Measures in the fertilizer sector supported by the organization have helped participating companies avoid an estimated 328,000 metric tons of carbon emissions annually. The organization is also supporting Indonesia's Ministry of Industry in developing eco-industrial parks.

Beyond industrial efforts, the United Nations Development Programme has supported the installation of 1.1 megawatts of solar mini-grid capacity across 22 remote villages. These systems provide reliable electricity to more than 3,400 households and public facilities, reducing energy costs by up to 40% and lowering carbon emissions by an estimated 1,800 metric tons annually. Local operators, with nearly half being women, have received training to manage and maintain these systems.

The International Labour Organization is helping regions across Indonesia prepare for the social and economic impacts of the energy transition. UN Women and the United Nations Environment Programme have helped more than 400 women entrepreneurs access green finance and adopt climate-smart technologies, such as solar drying systems, biogas cooking solutions, and solar-powered water pumps. Additionally, the United Nations Development Programme has helped over 2,400 small-scale fishers adopt cleaner technologies, including solar-powered boat engines, environmentally friendly cooler boxes, and improved cold-storage systems.

Gita Sabharwal, United Nations Resident Coordinator in Indonesia, said, "From grid modernization to industrial efficiency, from securing funding to community-based solar systems, the UN is partnering with the Government to support its groundbreaking work in strengthening the country's energy security." She added, "These initiatives reduce dependence on volatile global energy markets, boost supply reliability, and ensure that communities, from major industrial centres to remote villages, are contributing to a resilient future."

The United Nations Office for Project Services has also supported the Ministry of Environment's Climate Village initiative in South Sumatra, where roughly 285,000 residents have received training on renewable energy, low-emission technologies, and circular economy practices. Solar power is widely utilized on the islands of Java, Madura, and Bali.

Why It Matters

Indonesia's national goal of adding nearly 43 gigawatts of renewable energy capacity by 2034 represents a substantial increase in clean energy infrastructure. The estimated investment requirement of up to $188 billion highlights the scale of financial commitment needed for this transition. Coordinated efforts by various United Nations agencies, including investments in grid modernization and innovative financing, impact the country's ability to achieve these renewable energy objectives while managing the economic and social implications of the energy transition across its diverse regions.