Business energy storage project financing options in Indonesia 2026

Why is Indonesia focusing on energy transition and infrastructure development?

Despite global economic challenges, including rising interest rates, Indonesia’s focus on energy transition and infrastructure development has opened up new opportunities ‒ particularly in renewable energy, social impact projects, and digitalisation in financing mechanisms. Rise of green and sustainable financing

Why is battery energy storage system important in Indonesia?

However, given the challenge of Indonesia’s geological landscape, with many off-grid and remote areas, there is growing intermittency issue that hamper the development of solar and wind generation. Hence, the battery energy storage system (BESS) technologies have a critical role in the development of Indonesia’s renewable energy.

How can Indonesia increase funding and financing for infrastructure?

It sets out Indonesia’s ambition to increase funding and financing for infrastructure by developing innovative schemes from the public sector, such as public private partnerships, asset recycling and blended finance. Indonesia is the world’s sixth largest greenhouse gas emiter.

What is the project financing landscape in Indonesia?

The project financing landscape in Indonesia continues to evolve, with a stronger emphasis on sustainability, regulatory improvements, and innovative financial structures. The market has seen a shift towards green energy projects, more defined local content requirements, and increased involvement from multilateral agencies.

How will the World Bank support Indonesia's solar and wind projects?

The World Bank also announced that the financing package is expected to mobilize an additional USD 345 million in private investments to further support solar and wind projects in Indonesia.

Does Indonesia need more financing for green energy projects?

This highlights that much of the GSS+ bonds issued both by the government and private sector in Indonesia are primarily directed towards the energy sector. The evolving policy landscape in Indonesia further underscores the urgent need for increased financing in green energy projects.