Central Java projected to have US$8.26 renewables potential

Central Java Province considers itself considered ready to be a driver for green investment inflow to Indonesia. With renewable energy (renewables) potential reaching 201 gigawatts (GW) and the attraction of leading industrial areas, the province is projected to have US$8.26 billion or around Rp132 trillion (at Rp16,500 per US$1) of renewables investment potential.

The province's green investment opportunitites were presented at Central Java Renewable Energy Investment Forum (CJREIF) 2025 in Semarang City, Central Java on June 26, 2025, a collaboration between the Institute for Essential Services Reform (IESR) and the Central Java Province Investment and One-Stop Integrated Services Office (DPMPTSP). The CJREIF has been held routinely since 2022 to bring together investors, industry actors, and local governments.

Central Java Provincial Government Economic and Development Assistant Sujarwanto Dwiatmoko, representing Central Java Governor Ahmad Lutfi, stated that the local government continues to encourage the entry of new and renewable energy (NRE) investment, including through the development of community-based programs.

"In Central Java, we continue to strive to encourage the realization of a just energy transition based on local wisdom and involving active community participation," he said in Semarang City on June 26, 2025.

Sujarwanto gave an example of the Energy Self-Reliant Village Program as a form of appreciation for villages and communities that have independently developed their renewables potential. He also encouraged for industry actors to utilize rooftop solar power plants (SPPs) in their operations.

Statistically, the manufacturing sector contributed the most to Central Java's gross domestic product (GDP) in 2023 at 34.03 percent. The total realized investment value to the province reached RP88.44 trillion in the 2020-2024 period from Singaporean, Japanese, and Chinese investors, among others. But the renewables portion of Central Java's energy mix is still behind the 21.32 percent target by 2025, with renewables reaching 18.58 percent of the province's energy mix in 2024.

To accelerate the achievement of Central Java's renewables mix target, IESR noted that the province has the capacity for 194 gigawatt (GW) of solar energy with the potential to develop a 13.5 GW  financially feasible SPP project. The potential capacity is spread across 12 regions in Central Java, including Semarang City and the regencies of Wonogiri, Boyolali, Brebes, Kudus, and Banjarnegara.

"Unfortunately, the 2025-2034 RUPTL (Electricity Procurement Business Plan) only plans to develop 3.8 GW for SPPs in Central Java by 2034," said IESR Executive Director Fabby Tumiwa.

He added that the current global trend showed that renewables investment growth is two to three times faster than the fossil fuel sector. Fabby emphasized that many investors are now shifting their funding to projects that prioritize environmental, social, and governance (ESG) principles, especially in the Asia Pacific region.

To accelerate the energy transition and make Central Java a national green industry center, Fabby proposed five priority steps to the Central Java Provincial Government:

1. Prepare a green investment roadmap for 2025–2035 which integrates renewables targets, industrial transformation, and green infrastructure;
2. Establish a special green investment service unit complete with investor-friendly procedures and incentives;
3. Launch green industrial areas in strategic locations which support the circular economy and low-emission manufacturing technology;
4. Strengthen collaboration with financial institutions to ensure an inclusive green financing schemes;
5. Develop human resources, including through training for green skills and joint research with universities.

IESR and the Central Java Provincial Government also published the Book of Prospects, which contains profiles for 16 renewables projects with a combined investment potential reaching US$8.26 billion or around Rp132 trillion. The document is equipped with technical data and infographics, and is intended as an initial guide for prospective investors who want to enter Central Java's green energy industry.