A worker at the Lahendong geothermal site on Sulawesi Island, Indonesia. The hot steam produced here is fed to a nearby power plant to generate electricity.

Core area "Climate and energy, just transition" Boosting sustainable energy

Roughly one third of Indonesia’s greenhouse gas emissions emanate from the energy sector. Since Indonesia is a country with enormous reserves of coal, the government is continuing to promote the use of this environmentally harmful but cheap source of energy. At the same time, however, it is undertaking efforts to promote the use of renewable energy to generate electricity.

The share of renewable energies in the energy mix is to be increased to 23 per cent by 2025.

In order to protect the climate as a global public good, Germany is assisting the Indonesian government in its efforts to create the political, legal and technical prerequisites for using geothermal energy, hydropower and solar energy. For example, the BMZ is supporting the construction of hydropower stations, the expansion of supply networks, and the electrification of rural areas and remote islands using small-scale hydropower plants and solar installations (mini-grids).

Furthermore, within the framework of the Indonesian-German Green Infrastructure Initiative, the BMZ is working to make urban infrastructure in selected provinces more modern and more eco-friendly. Related efforts address the circular economy and waste management, water supply and wastewater systems, and urban public transport services.