TEMPO.CO, Jakarta - The Institute for Essential Services Reform (IESR) projects that the development of renewable energy can drive Indonesia's economic growth by up to 8 percent per year in 2029. Additionally, the utilization of clean energy also has the potential to create new job opportunities.
Based on IESR's study, the Executive Director of IESR, Fabby Tumiwa, mentioned that the transition to renewable energy can create 3.6 million green jobs by 2050. According to him, renewable energy requires a workforce that understands the technology and components of operating clean energy systems.
Fabby explained that renewable energy such as solar power, wind, and biomass are more cost-effective compared to conventional power plants that have been used in Indonesia. He also highlighted the potential for saving foreign exchange of up to US$ 15-20 billion per year if Indonesia switches to renewable energy. "If these funds are saved and redirected to other areas, it will have a positive impact on the development of education, health, and even the regional economy," said Fabby during the launch of a study on the development of 100 percent renewable energy-based islands on Monday, July 30, 2025.
He recommended that the government accelerate the utilization of clean energy, especially through the development of solar power plants. Fabby assessed that the price of solar power plant components is now much cheaper than a decade ago. He also mentioned that battery storage technology is now capable of maintaining electricity supply in remote areas and small islands.
However, IESR also highlighted the domination of conventional energy based on fossil fuels that is still massive in Indonesia. Fabby stated that this source of energy is expensive, vulnerable to weather disruptions, and heavily reliant on distribution infrastructure.
According to him, this condition leads to uneven energy distribution. "This is what is currently happening. In several small islands in Indonesia, such as Enggano Island, they experience a power crisis because it is only available for 12 hours. This condition has caused economic impacts on the island," said Fabby.
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