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Indonesia must get more clean energy investment, new minister says
According to Investment Minister Rosan Roeslani, data center providers have shown interest in Indonesia but backed off because of a lack of renewable energy and opted to invest in Malaysia instead.
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Rosan Roeslani, who currently serves as investment minister, delivers a speech on Sept. 6, 2023, at the ASEAN-Indo-Pacific Forum (AIPF) in Jakarta, while he was the deputy minister for state-owned enterprises (SOEs). (Antara/Media Center KTT ASEAN 2023/Aditya Pradana Putra)
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nvestment Minister Rosan Roeslani says Indonesia needs to boost supply of renewable energy to meet its targets of attracting Rp 1.65 quadrillion (US$106.24 billion) in investment this year and Rp 1.9 quadrillion next year.
The minister, who was only appointed to the post on Aug. 19, warned that failing to meet the growing demand for clean power from businesses could drive potential investors elsewhere.
“Some investors, such as data center providers, have shown interest in investing in Indonesia but later decided to back off and shift their investment to other countries like Malaysia as they want clean energy,” Rosan explained in a press briefing to announce the latest investment figures on Tuesday.
Rosan said the key for achieving more than 5 percent gross domestic product growth lies in attracting more investment and increasing exports, both of which still have room to grow.
“Our domestic [private] consumption accounts for around 53 percent [of GDP], followed by investment and government spending at around 25 and 8 percent, respectively. The value of exports is still not significant. Thus, our [future] investment theme will be [based] on clean energy and export-oriented businesses,” he noted.
Read also: PLN eyes 60% private role in renewable developments
Indonesia recorded Rp 431.5 trillion in direct investment during the third quarter of this year, marking a 15.24 percent jump from the same period last year. However, quarter-on-quarter (qoq) growth slowed to just 0.7 percent, compared to the 6.7 percent surge seen in the previous quarter.
