Ecobiz.asia — Indonesia is making rapid progress in its energy transition, marked by rising renewable energy adoption, stronger investment flows, and increased digital integration.
The Asia Pacific Energy Transition Readiness Index 2025 by ABB revealed that 40 percent of Indonesian companies now source more than half of their energy needs from renewables, well above the regional average of 25 percent.
Investment is also gaining momentum, with 86 percent of companies allocating more than 10 percent of their capital expenditure (CAPEX) to energy transition projects.
Technological innovation has become a key driver, as 70 percent of business leaders see solutions such as artificial intelligence (AI) and automation as the strongest accelerators of transition.
“Indonesia continues to demonstrate steady progress in its energy transition journey. Strong climate policies, impactful investments, and optimism toward innovative technologies are the driving factors,” said Abhinav Harikumar, Vice President of ABB’s Energy Industries Division for Southeast Asia, presenting the research findings on Wednesday (Sept 24, 2025).
Beyond investment and technology, green talent is also viewed as crucial, with 30 percent of respondents highlighting the need for skilled workers to support transition strategies.
Public–private collaboration, targeted incentives, and stronger intergovernmental coordination were identified as key to accelerating Indonesia’s national energy transition in the coming years. ***
