In a previous essay, we argued that Indonesia’s sovereign wealth fund, Danantara, could serve as a bridge between the Gulf’s immense pools of capital and Indonesia’s vast renewable energy potential. That argument remains valid. As Gulf Cooperation Council (GCC) countries diversify beyond hydrocarbons and seek long-term investments in emerging markets, Indonesia stands out as one of the world’s most promising destinations for renewable energy development.

Yet capital alone cannot deliver an energy transition. If Indonesia is serious about achieving President Prabowo Subianto’s ambition to build up to 75 gigawatts of renewable energy capacity in the coming decades—a transformation that could require at least US$235 billion in investment—it will need not only GCC investors, but also something far less discussed: a pipeline of bankable green projects.

This distinction matters because green investment has become one of the defining economic priorities of our era. The Monetary Authority of Singapore estimates that ASEAN requires approximately US$200 billion in green investment annually through 2030 to meet climate and development goals. Despite this enormous demand, investment flows continue to fall short, reflecting not only financing gaps but also the difficulty of generating commercially viable projects capable of attracting capital at scale. 

Indonesia exemplifies this challenge. For years, the country has announced increasingly ambitious renewable energy targets while paying insufficient attention to the institutional, social and bureaucratic foundations necessary to achieve them.

Indonesia exemplifies this challenge. For years, the country has announced increasingly ambitious renewable energy targets while paying insufficient attention to the institutional, social and bureaucratic foundations necessary to achieve them.

Renewable energy plans are unveiled, investment figures are celebrated and gigawatts are promised. Yet much less attention is devoted to........

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