Ecobiz.asia — A recent survey conducted by Petromindo Survey highlights growing industry concern over the slow pace of renewable energy development in Indonesia, despite strong expectations for its role in the national energy mix.
The survey, titled “Renewable Energy Progress in Indonesia: Industry Perspectives,” gathered responses from stakeholders across the energy ecosystem, including independent power producers (IPPs), EPC and technology providers, investors, industrial off-takers, and consultants.
“The findings show that 56.8% of respondents believe renewable energy development in Indonesia has progressed but remains relatively stagnant, indicating that existing momentum has yet to translate into large-scale deployment,” said Petromindo Survey Researcher Muna Suhailah, as quoted Monday (April 27, 2026).
The survey was conducted between February 11 and March 26, 2026. Most respondents were professionals aged 26–35, with a significant portion working in the EPC and technology provider segment and having indirect involvement in renewable energy projects.
Muna added that a notable gap persists between industry expectations and current conditions. Renewable energy is widely viewed as essential for Indonesia’s future energy mix, receiving a high importance score of 4.74 out of 5. However, the regulatory framework was rated significantly lower at 3.33, reflecting concerns over its attractiveness for investment.
Regulatory and bureaucratic challenges remain the primary barriers to project expansion. Respondents cited regulatory uncertainty and lengthy permitting processes as the most significant obstacles, a view consistent across all stakeholder groups.
Financing constraints also pose challenges, with high project risks and uncertainty surrounding power purchase agreements (PPAs) affecting project bankability. These concerns are shared not only by developers and investors but also by industrial off-takers, underscoring systemic issues across the sector.
Despite these barriers, stakeholders largely agree on the solutions needed. Regulatory clarity, policy consistency, and streamlined permitting processes were identified as the most critical actions to accelerate renewable energy deployment.
In terms of technology priorities, solar photovoltaic (PV) and geothermal energy were identified as the most promising sources for large-scale development. Solar PV is favored for its scalability, lower costs, and faster deployment, while geothermal is seen as a reliable baseload power source for long-term energy security.
Overall, industry sentiment remains cautiously optimistic. Respondents expressed confidence in Indonesia’s ability to achieve its net zero emissions target by 2060, although the survey did not specify an exact average confidence score.
The findings suggest that while Indonesia’s renewable energy ambitions are well recognized, stronger policy execution and regulatory reforms will be essential to unlock large-scale investment and accelerate the energy transition. ***
