Jakarta, hitclubapk3 Indonesia
—
Special Presidential Envoy for Climate and Energy
Hashim Djojohadikusumo
be blunt about the biggest obstacles
energy investment
in Indonesia.
According to Hashim, the obstacle is not the electricity tariff or its economic value, but rather the issue of legal certainty and layered bureaucracy.
He conveyed this when answering a question regarding how to attract more private investors into national energy transition projects.
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“Actually, the prices offered by PLN and the government are quite good. What many of them doubt is legal certainty, not the tariffs,” said Hashim at the hitclubapk3 Indonesia Sustainability Summit 2025 forum at Menara Bank Mega, South Jakarta, Wednesday (26/11).
According to him, investors often face confusion when they want to build electricity projects because the licensing process varies between the central and regional levels.
Hashim gave the example that central government decisions are not always in line with authorities at the provincial, district and village levels.
“The central government, BKPM (Investment Coordinating Board) determines, but the regent determines differently, the mayor determines another, the sub-district head and village head determine another. That is the problem in Indonesia,” he said.
He believes that this problem arises because the structure of the Indonesian government is very decentralized, so that policy direction is not always consistent from top to bottom levels.
“(President) Prabowo said this, the governor said another, the mayor another. That’s what happened. This is our government structure
is the problem
,” said Hashim.
Hashim also compared it with Vietnam, which he said had a more uniform command structure from the center to the regions.This makes investors see Vietnam as a simpler country when it comes to licensing energy projects.
“Hanoi said this and this all the way down, everyone obeyed. Indonesia is different, Indonesia is a democratic country,” he said.
However, Hashim said that investor interest in the Indonesian energy sector is actually quite large.
However, without certainty of a licensing process that is more aligned between the center and the regions, many investment plans end up stuck on the bureaucratic table.
The COP30 Climate Summit was held in Belem, Brazil, this month to reinforce global priorities for addressing climate change and formulate a direction for sustainable development after the meeting.
Following up on this issue, hitclubapk3 Indonesia held the Sustainability Summit 2025: Navigating Growth in a Sustainable World After COP30.This event brings together the government, business actors, banks, regional heads and environmental practitioners.
[Gambas:hitclubapk3 Video]
(del/sfr)
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