Indonesia’s infrastructure minister called for sustainable, low-carbon infrastructure development to advance the country’s energy transition, acknowledging significant challenges in meeting renewable energy targets.

“The future must be built upon sustainable infrastructure, one that is not only strong and efficient, but also low-carbon, climate-resilient, and inclusive,” Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono said at the PYC International Energy Conference 2025..

Indonesia’s renewable energy share reached only 14% in 2024, falling short of the government’s 23% target for 2025, Yudhoyono said. While 99.83% of Indonesians have electricity access, power quality remains problematic with households experiencing outages exceeding five hours annually.

Electricity productivity contributes just 2% to gross domestic product growth, he added, while energy subsidies impose a heavy fiscal burden.

“These numbers are not just data points—they are a call to action,” the minister said, describing the energy transition as an urgent necessity across economic, social and geopolitical dimensions.

Funding remains a major obstacle, requiring strategic financial instruments to support the transition, Yudhoyono noted.

“We need a new financial architecture that turns climate goals into tangible investments,” he said.

The government is prioritizing sustainability in infrastructure development under its 2025-2029 National Medium-Term Development Plan, integrating transportation, maritime and housing sectors under a unified approach.

“This integrated strategy reinforces the vital principle that sustainable infrastructure and energy transition must evolve together,” Yudhoyono said. “Each must strengthen the other to ensure economic growth without compromising our environment.”

Southeast Asia’s largest economy has been working to reduce its dependence on coal and increase renewable energy capacity as part of global climate commitments.

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