JAKARTA (TheInsiderStories) – The Indonesian government and IFC, a member of the World Bank Group, are working together to promote the renewable energy investment in the upcoming IMF-World Bank annual meeting, which is set to take place in Bali this October.

Over 100 regulators, market practitioners, policymakers, investors, and executives, are expected to take part in the knowledge-sharing event to develop new partnerships, leverage opportunities, and accelerate Indonesia’s fast-growing market for renewable energy transactions.

The high-level event will commence with a keynote address by Minister of Energy and Natural Resources, Ignasius Jonan. This will be followed by several presentations and discussions on projects from around the world that have demonstrated impact and replicability.

Indonesia is a home for abundant resources, including 40 per cent of the world’s geothermal reserves. Though Southeast Asia’s largest economy has been struggling to unleash its clean energy potential, it has set an ambitious energy target, aiming for renewables to generate 23 percent of the country’s energy mix by 2025.

The Indonesian government aims to add 250 MW to the nation’s installed geothermal power plants’ production capacity in 2018. Based on data from Indonesia’s Energy and Mineral Resources Ministry, Indonesia’s geothermal power capacity stood at 1,808.5 MW at the end of 2017, below the government’s target of 1,858.5 MW. Although the production figure is rising, Indonesia only taps 10.3 per cent of its geothermal potential.

Today, renewables account for 5 per cent of its energy mix. To scale up growth across the renewable energy sector, the country needs greater private sector investment

IFC, the largest global development institution focused on the private sector in emerging markets, is one of the leading renewable energy investors in the world and has played a key role in the development of Indonesia’s renewable energy sector, removing regulatory and environmental constraints, financing several major projects, encouraging private investment, and pioneering innovative financing models.

“IFC is increasing its support and mobilization efforts for climate-smart projects and remains an active supporter of Indonesia’s energy and infrastructure development,” said Vivek Pathak, IFC Regional Director for East Asia and the Pacific.

Globally, over the past decade, IFC has invested US$18.3 billion of its own funds in long-term financing for climate-smart projects and mobilized an additional $11 billion from other investors. Through these investments, IFC has developed expertise in key climate markets including solar, hydropower, wind, energy storage, green buildings, and waste-to-energy.

Finance Minister Sri Mulyani said that infrastructure and financial technology (fintech) development would be among the main agendas of the meetings.

Bank Indonesia Governor Agus Martowardojo added that discussions on ways to ensure inclusive and sustainable global economic growth would also feature prominently in the event.

Written by Elisa Valenta, email: elisa.valenta@theinsiderstories.com