By: Andhika Rachman
Indonesia has again taken an important step towards a green and sustainable economy. Through a new institution called the Daya Anagata Nusantara Investment Management Agency (Danantara), the government is opening the door to foreign investment, particularly in the renewable energy sector, a strategic sector currently under global scrutiny as key to future sustainable development.
Since its inauguration by President Prabowo Subianto, Danantara has carried a significant mandate to manage and optimize state assets to accelerate inclusive, productive, and environmentally friendly national economic growth. This institution functions not merely as a financial entity but also as a strategic platform that bridges collaboration between foreign capital, state-owned enterprises, and the domestic private sector. One of its main focuses is creating a healthy and sustainable investment ecosystem in the new and renewable energy (NRE) sector.
This step comes at an opportune time. The world is currently at a crucial crossroads towards a clean energy transition, and Indonesia, with its rich natural resources ranging from geothermal, solar, wind, and bioenergy, has tremendous potential to become a major player in the region. However, the biggest challenges so far have been financing and accelerating project implementation.
Indonesia’s openness to foreign investors through Danantara is now increasingly clear. Several strategic partnerships underscore the government’s commitment to making the renewable energy sector the backbone of the future economy. One of the most prominent collaborations is between Danantara and BlackRock, the world’s largest asset manager from the United States. Through this partnership, both parties agreed to expand investment in the downstream industry and renewable energy sectors in Indonesia.
Danantara CEO, Rosan P. Roeslani, emphasized that the collaboration with BlackRock is not only about funding, but also about building trust and strengthening Indonesia’s position in the global energy supply chain. He aims to make Danantara a bridge between Indonesia’s vast potential and the confidence of international investors.
Another bold step comes from the collaboration between Danantara and ACWA Power, a leading Saudi Arabian energy company. The two parties signed a memorandum of understanding (MoU) worth US$10 billion, or approximately Rp163 trillion, which will be used to develop green energy projects in Indonesia, including solar power plants and green hydrogen infrastructure. This major initiative is clear evidence that Indonesia is now a leading destination for clean energy investment in Southeast Asia. ACWA Power even calls Indonesia a strategic market with untapped green energy potential.
Furthermore, Danantara is also exploring collaborations with various global climate finance institutions, such as the Green Climate Fund and the International Renewable Energy Agency (IRENA). This step underscores the government’s commitment to expanding green financing sources and opening up opportunities for global investors oriented towards ESG (Environmental, Social, and Governance) values.
Danantara is currently preparing a renewable energy investment portfolio that includes a large-scale solar power plant project in East Kalimantan, geothermal development in North Sulawesi, and investment in a green hydrogen project integrated with a national strategic industrial area. All of these initiatives are aimed at supporting the achievement of the 23 percent renewable energy mix target by 2028 and the goal of achieving net-zero emissions by 2060.
For foreign investors, this opportunity offers various strategic advantages. Through Danantara, they can partner directly with an institution that enjoys full government support, thus guaranteeing stability, clear policy direction, and long-term investment certainty. Furthermore, the government’s ongoing regulatory reforms, such as streamlining permits, providing tax incentives, and supporting clean energy projects, further strengthen Indonesia’s appeal to global investors.
Optimism for the future of renewable energy in Indonesia is also reinforced by the government’s commitment to building a national green industrial ecosystem. Through Danantara, renewable energy projects focus not only on power plant construction but also on fostering the formation of local supply chains, from solar panel and battery manufacturing to energy storage infrastructure.
The Deputy Minister of Energy and Mineral Resources (ESDM), Yuliot Tanjung, also emphasized that Danantara will play a direct role as a shareholder in the Waste-to-Energy (PSEL) project. This waste-to-energy program demonstrates the government’s commitment to addressingaddressing the national waste problem while strengthening energy security.
With the establishment of Danantara, Indonesia is not only opening the door to foreign investment but also inviting the world to join us in building a cleaner, more sustainable, and more inclusive energy future. This is a significant opportunity for Indonesia to demonstrate that economic progress can go hand in hand with environmental sustainability.
Through Danantara, Indonesia is asserting itself as a green energy pioneer in Southeast Asia, a country that is boldly transforming and turning its potential into real strength. In this era of global energy transition, Danantara’s strategic move is not merely a policy, but a symbol of the nation’s courage to move towards a greener, more independent, and more energy-sovereign future.
)* Government Policy Observer
