How It Works

What we do

Driving Sustainable Growth Through the Green Economic Corridor

Indonesia is a vast archipelago endowed with rich natural resources, with 3,700GW of potential in renewables alone. The Green Economic Corridor will play a part in Indonesia’s epoch-making transition to renewable energy, supercharging the nation’s economy and deliver fair and sustainable development for its population of 282 million. New utility-scale renewable energy projects in the Green Economic Corridor will attract foreign direct investment and support the creation of clean energy supply chains in the region.

From Green Energy Cooperation to Green Industry Development

GCI works with a cross-section of stakeholders in Indonesia and Singapore’s energy sectors to advance renewable energy cooperation, which will reap significant benefits for Indonesia’s economic and industrial development. These benefits will unfold in three phases:

3. Advancing Indonesia’s green growth & industry

Availability of renewable energy will make the Riau Islands an attractive investment destination for industries that require it, including:

  • Manufacturing (e.g. electronics, semiconductors, biotech)
  • Data centres
  • Green hydrogen
  • Industries impacted by the EU’s Carbon Border Adjustment Mechanism
  • National green energy ecosystems
  • The Riau Islands’ development as a green hub can also foster the growth of related industries such as ecotourism, the blue economy and carbon services.

Next 15 Years

Indonesia’s domestic renewable energy projects benefits from developed clean tech ecosystem including:

  • Lower costs due to supply chain and economies of scale;
  • Trained workforce;
  • Advances in technology from R&D
  • Strategic space for ESDM and PLN to develop a domestic renewable energy framework that facilitates future buildout to meet 75GW.
  • Supports Indonesia’s decarbonisation and renewable energy goals

Next 5 years

  • Foreign companies develop utility-scale, TKDN-compliant renewable energy projects in the Riau Islands with energy sold to Singapore
  • Singapore offtake guarantees scale and secures core financing for renewable energy in Indonesia
  • Foreign direct investment attracts supply chain investments and downstreaming in Indonesia
  • Development of the clean energy industry through R&D and upskilling of Indonesia’s workforce

Benefits

The development of the Green Economic Corridor will bring about benefits to Indonesia such as:

USD 50 Billion

USD50 bn/ IDR785 tn of investment in Indonesia, including USD30 bn from construction & operations and USD20 bn from domestic manufacturing

USD 63 Billion

USD63 bn/ IDR998 tn of gross value-add in Indonesia between 2025-2059, translating to USD1.8 bn yearly

232,000+ Jobs

232,000+ full time equivalent jobs created in Indonesia between 2025-2049, including projects and supply chain

USD 13 Billion

USD13 bn in tax benefits for the Indonesia government, including direct and value-added taxes

TKDN

Projects will fulfill Tingkat Komponen Dalam Negeri (TKDN) also known as local content requirements, therefore stimulating supply chain investments to develop local manufacturing

75GW of Renewables

Contributes towards Indonesia’s ambitious RE targets, including an additional 75GW of renewables

Zero by 2050

Supports Indonesia’s Nationally Determined Contributions and net zero by 2050 goal

Carbon & REC Boost

Develop Indonesia’s Renewable Energy Credits and carbon credits industry

Local Impact

And additional benefits for the local economy through infrastructure build and knowledge transfer

Progressing the SDGs

Activities to advance renewable energy co-operation and clean tech industries in the Green Economic Corridor will help progress the UN’s Sustainable Development Goals.

Economy & Jobs

  • Developing and investing in green industries across Indonesia, enabling downstreaming and industrialisation
  • Collaborating on upskilling and R&D
  • Creating green jobs for a just transition

Energy & Emissions

  • Expanding energy self-sufficiency and access to electricity in the Riau Islands
  • Accelerating Indonesia’s journey to net zero by 2050 and progress towards its target of 75GW of additional renewable energy

Industry & Ecosystem

  • Promoting technological innovation
  • Financing clean energy infrastructure
  • Leveraging public-private partnerships
  • Building up local supply chains

Health & Environment

  • Providing clean, non-pollutive energy to industries and communities
  • Exploring opportunities in the green and blue carbon economy in the Riau Islands e.g. ecotourism, seaweed farming