Clean Energy Can Drive Indonesia’s Industrialization, Indef Says

Clean energy should become an engine of Indonesian industrialization rather than remain only an environmental priority, according to the Institute for Development of Economics and Finance, or Indef.

Esther Sri Astuti, Indef’s executive director, said renewable-energy development should connect directly with manufacturing industrial zones. That would allow clean power supplies to serve growing industrial demand and help create a new source of economic growth.

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Clean energy has become a necessity

“Clean energy has become a necessity,” Esther said at the 100 Economists Forum in Jakarta on September 3, 2026. She said countries were increasing clean-energy investment in response to global economic pressures and the effects of geopolitical conflicts, and Indonesia needed to respond by expanding investment in renewable energy.

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The 100 Economists agenda is positioned not merely as an environmental agenda, but also as an investment and industrialization agenda

Esther said investment in new and renewable energy, conservation and energy technology currently covered about 7.2 percent in Indonesia. She described that figure as evidence that the country still has substantial room to expand clean-energy investment and increase its contribution to the economy.

Indef proposed creating renewable-energy zones linked to Indonesia’s special economic zones. Esther said the connection would bring energy supply and industrial demand together, forming a renewable-powered industrial ecosystem. In Indef’s view, the model could make Indonesia more attractive to investors and support manufacturing development as the government seeks new sources of growth to meet its 8 percent target.

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The renewable energy zone must match, or connect, with the Special Economic Zone, so that energy supply and demand can meet