Indonesia’s vision to build 100 gigawatts (GW) of solar energy is gathering real momentum, fuelled by growing Chinese investment under the Belt and Road Initiative (BRI). According to TanahAir.com, this wave of green financing, valued at around $900mn, is seen as one of the primary forces driving Indonesia’s energy transition during President Prabowo Subianto’s administration. Experts believe this marks the beginning of a decade-long collaboration that could reshape the country’s renewable energy landscape, create thousands of jobs, and strengthen its position as a regional clean energy hub.

BRI financing

Health and Environment solution provider SUSTAIN Foundation has called on the Indonesian government to fully harness China’s BRI investment to accelerate the transition to renewable energy. During the launch of SUSTAIN and CERAH’s report “Leveraging China’s Green Momentum to Advance Indonesia’s Economic Development” on November 5, SUSTAIN Executive Director Tata Mustasya revealed that Indonesia was the largest BRI investment recipient in 2024, receiving $9.3bn (IDR148.8 trillion) in total. Of that figure, approximately $900mn (IDR14.4 trillion) flowed into the energy sector, with a majority directed toward renewable energy projects.

Mustasya explained that this amount represents just the starting point of long-term financing potential. Based on SUSTAIN’s historical analysis of BRI data, the total investment “could be allocated for renewable development over the next ten years, and the actual figure could certainly be even higher,” he told TanahAir.com.

SUSTAIN’s simulation showed that if the entire BRI energy allocation were redirected to renewables, Indonesia could generate IDR144 trillion ($8.6bn) in economic value over a decade. “If optimised, this could create the equivalent of 80 Cirata Floating Solar Power Plants,” Mustasya said, referring to the country’s largest solar project. Such a scenario could also create 112,000 jobs, reduce 17mn tonnes of CO₂ emissions, and supply clean electricity to 4mn households, according to Indonesian Business Post reports.

The SUSTAIN–CERAH study also analysed West Java as a case study for regional renewable investment. The province, home to 17mn PLN (State Electricity Company) customers, around 19% of Indonesia’s total, is projected to see a 43% increase in electricity demand over the next decade, Indonesian Business Post reports.

According to Mustasya, 30% of current BRI funding, about IDR42.7 trillion, could be used to finance 3.6 GW of solar power projects under the 2025–2034 Electricity Supply Business Plan (RUPTL) in West Java alone. This would create 33,000 new jobs and reduce 5.14mn tonnes of carbon emissions annually.

He added that West Java also presents opportunities in the electric vehicle (EV) manufacturing sector, thanks to its established industrial infrastructure. “The EV market in Indonesia is growing rapidly, driven by incentives for both producers and consumers. Localisation of Chinese EV manufacturing is ongoing in Subang, where factory construction is underway,” Mustasya said. He further estimated that four EV manufacturing plants equivalent to BYD’s size could be developed in the province, creating up to 70,000 formal jobs with wages higher than those in informal employment, Indonesian Business Post reports.

Electric vehicles and the expansion of China–Indonesia industrial ties

According to TanahAir.com, green investment from China is not limited to renewable power generation. Indonesia is also positioning itself as Southeast Asia’s electric vehicle (EV) manufacturing hub, directly challenging Thailand’s dominance. Two large-scale projects are central to this effort: the $1.3bn BYD factory in Subang and CATL’s battery production facility in Karawang.

The China World Resources Institute (WRI) underscores that collaboration will be most effective when it includes local knowledge transfer and community participation. WRI Finance Director Shuang Lin told TanahAir.com that Chinese investors are complementing capital inflows with technical training and workforce development programmes. “Investors are providing equipment and specialised vocational training to build local capabilities, which will drive the success of this collaboration,” Lin said.

While the potential of green investment is substantial, experts urge caution in projecting job creation figures. Yeremia Lalisang, Senior Assistant Professor of International Relations at the University of Indonesia, told Indonesian Business Post reports that employment in renewable energy projects may be lower than in other industries, such as manufacturing or agriculture.

“After solar plants begin operation, manpower needs decline significantly. Operation and maintenance only require a small team; solar technology is designed for minimal staffing,” Yeremia explained. He also questioned the broad use of the term localisation in investment discussions, noting that high-tech industries require specialised skills that are often scarce in rural areas. As a result, companies may bring in workers from other regions who already possess the necessary expertise.

Nevertheless, Yeremia acknowledged that these projects could still stimulate local economies indirectly. “Even if the workforce comes from elsewhere, they contribute to local economic activity, paying rent, buying food, and using local services,” he concluded.

Both TanahAir.com and Indonesian Business Post reports highlight that the success of Indonesia’s green transformation will depend on inclusive policy frameworks that balance economic, social, and environmental goals. Ardhitya Eduard Yeremia Lalisang, another lecturer at the University of Indonesia, stressed that the government must ensure investment benefits reach local communities, particularly those near project sites.

“Regulations must shift from a top-down to a community-oriented approach. Before formulating policies, we must ask how they can benefit those who truly need them,” she told TanahAir.com.

As Indonesia advances toward its 100 GW solar energy target and deepens industrial cooperation with China, it faces a defining challenge: ensuring that the energy transition delivers both sustainability and equity. With continued BRI support and inclusive governance, the country stands poised to turn its renewable energy ambitions into a transformative force for green growth, economic diversification, and climate resilience across the archipelago.