Kadin Pushes Green Investment to Close Rp 394 Trillion Funding Gap and Drive Indonesia’s 2026 Growth

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JAKARTA, Investortrust.id — The Indonesian Chamber of Commerce and Industry, or Kadin, says Indonesia must rapidly expand green investment to help close the country’s Rp 394 trillion annual climate-funding gap and support the government’s ambition to reach 8 percent economic growth in 2026, as the nation intensifies its shift toward a low-carbon future.

The chamber said Indonesia’s move toward net zero emission by 2060 or sooner had created urgent investment needs that far exceeded state-budget capacity.

Deputy Chairman for Investment, Downstreaming, Energy and Environment Bobby Gafur Umar said Indonesia’s renewable energy potential reached 3,600 gigawatts, although actual development remained only 0.41 percent. He said accelerated expansion over the next decade could generate about 760,000 new jobs and reduce emissions by 129.5 million tons of carbon dioxide.

Bobby said the Power Supply Business Plan for 2025–2034 targeted 69.5 gigawatts of new capacity, with more than three-quarters coming from renewable energy and storage. He added that this marked a structural transformation in the energy sector and that the chamber needed to synchronize its work program with national green-transition priorities.

At the chamber’s national coordination meeting, Deputy Environment Minister Diaz Hendropriyono said Indonesia required about Rp 470 trillion per year for climate-change mitigation, while the state budget could provide only Rp 76 trillion. He said the resulting Rp 394 trillion funding gap made private-sector participation indispensable.

Diaz said stronger collaboration with business groups was particularly critical for waste-to-energy and Refuse Derived Fuel projects. He said the government designated seven priority regions for early waste-to-energy development, including Bali, Yogyakarta, Greater Bogor, Greater Tangerang, the city of Semarang, Greater Bekasi and Greater Medan.

Diaz said each region was required to secure at least five hectares of land and daily waste volumes of at least 1,000 tons to support operations. He said Indonesia needed multiple waste-processing technologies instead of relying on one approach and that the chamber’s involvement could accelerate field implementation.

With climate risks intensifying and the national energy strategy shifting toward cleaner sources, the government said green investment had become a structural necessity for competitiveness, not merely an economic opportunity.

The chamber is expected to help mobilize capital, advance technology adoption and strengthen strategic partnerships to drive sustainable economic growth in 2026.