Indonesia's DEN Pushes Accelerated Clean Energy Transition for Industry Competitiveness

4 days ago 11

August 27, 2025 | 06:25 pm

TEMPO.CO, Jakarta - The deputy chair of the National Economic Council (DEN), Mari Elka Pangestu, highlighted the necessity of clean energy transition in Indonesia. According to her, clean and affordable energy availability is one of the primary challenges to industry competitiveness.

"It won't be green (energy) if we don't utilize clean energy. Especially batteries for electric vehicles, which supposedly are green products. Using fossil fuels will make it questionable for buyers," Mari said at the Indonesia Summit 2025 event at The Tribrata Dharmawangsa, South Jakarta, on Wednesday, August 27, 2025.

Mari gave examples of various industries that are heavily dependent on energy, such as textiles for export, glass, and electric vehicle batteries. Furthermore, significant energy needs also come from digital sectors such as data centers.

"This is a challenge for energy transition. We may not easily move away from fossil fuels, but we must speed up clean energy for future needs," she said.

The former Minister of Trade assessed that there are several unaddressed tasks, including the ratification of the Renewable Energy bill, reforms within the state electricity company (PLN), and the implementation of the latest government regulations regarding waste-to-energy.

Mari also mentioned the untapped potential of geothermal energy. "Why, as a country with abundant geothermal resources, are we not making more use of geothermal energy?" she said.

Mari emphasized that without an adequate source of clean energy, the competitiveness of Indonesian industries, especially those oriented towards exports, will face significant pressure from global demands for green products.

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