Indonesia aims for 2-3% growth boost from expanding green economy by 2029

Indonesia’s current growth rate stands at 5.45%, and officials claim that a large-scale rollout of green energy projects could lift that figure by an additional 2-3%. By 2029, the green economy is expected to provide jobs for 5.3 million workers, requiring higher-skill labour. The nation’s strategic mineral deposits and abundant silica sand are positioned to support downstream industries such as electric vehicles and solar panels, with potential solar capacity of 111 GW per year.

However, U.S. import duties of up to 110% on solar panels and 50% on stainless steel threaten competitiveness. The government plans to finance the transition through green bonds, blended finance, and the Just Energy Transition Partnership, which has pledged over $20 billion. The minister also linked green energy development to the expansion of Indonesia’s $100 billion digital economy.