Mentari Programme: UK Government’s Support for Indonesian Renewable Energy Projects

Indonesia has a huge potential of more than 4 GW for renewable energy. The government of Indonesia also has a target of 23% portion of the energy mix derived from new and renewable sources by 2025. However, the development of the renewable energy sector has not been in line with the target achievement. Indonesia currently stands at 12% portion of renewables. There are common obstacles identified by the industry including an unfavourable regulation landscape and a lack of access to finance. Therefore, to help Indonesia grow its renewable energy sector, the UK government’s Prosperity Fund has launched a bilateral technical assistance program in low carbon energy titled Mentari. Mentari itself stands for ‘Menuju Transisi Energi Rendah karbon Indonesia’ or ‘Progress towards a Low Carbon Energy Transition in Indonesia’.

The MENTARI Programme, led by the British Embassy Jakarta and its partners, aims to deliver inclusive economic growth and poverty reduction in Indonesia, by supporting the uptake of low carbon energy. The main counterpart of the program is Indonesia’s Ministry of Energy and Mineral Resources (ESDM). The programme has a specific focus on developing the low carbon energy sector to best support disadvantaged communities, and specifically those in eastern Indonesia. The program consists of work strands in policy, brokerage of commercial projects, demonstration projects, and collaborating & networking with industry stakeholders. This time we focus on the brokerage strand . This strand aims to bridge the gap between investors/donors who want to fund quality renewable projects and project owners/developers who face difficulties to access investment. This strand comprises technical assistance and potential project preparation funding for Indonesian projects owned/developed by Indonesian and international companies. The speakers presented and discussed how Indonesian and International companies can get involved in Mentari.