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How start-ups and venture capital can propel Indonesia’s energy transition
The increased rate of natural disasters and mercurial weather patterns is just the beginning of the world’s climate problems.
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Indonesia’s energy transition must balance the needs of the people, the economy and the environment.
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ndonesia’s digital economy has reached an inflection point, and there’s great potential for venture capital (VC) and entrepreneurs to connect tomorrow’s massive data center energy demand to the renewables sector.
The world is in a peculiar moment. In the news today are wars, natural disasters, food and energy crises and a global recession. Amid the backdrop of a post-lockdown world, where many nations are still trying to recover economically, a more sinister threat stands off to the side, biding its time. I’m talking about climate change.
It isn’t anything new, of course – plenty of scientists have been trying to warn everyone about its effects since the 1960s.
Unfortunately, the world now is not in a better state than it previously was. I made my money from coal yesterday, so it's my responsibility to be clear today: Global warming is real, and we have far surpassed the 1.5 degrees Celsius global temperature increase limit needed to reverse its effects.
Compounding the effects of climate change is the fact that a huge chunk of the world, Asia, is growing fast – namely Southeast Asia. The World Economic Forum predicts that the region is on track to become the world’s fourth-largest economy by 2030.
Buoyed by the quick expansion of its middle class, trade development and rapid digitalization, ASEAN’s growth comes with a commensurate need for increased energy capacity.
Let’s take Indonesia as a baseline. It is the largest ASEAN country, spanning 1.86 million square kilometers, and is home to more than 270 million people.
