Towards Net-Zero, the Government Allocates Rp402.4 Trillion for Energy Resilience 2026

JAKARTA - The Indonesian government continues to emphasize its role in strengthening regional economic resilience amid global dynamics marked by geopolitical uncertainty, financial market turmoil, and the challenge of transitioning to a low-carbon economy.

Coordinating Minister for the Economy Airlangga Hartarto said that in the green economy and energy security sectors, President Prabowo Subianto had set a firm policy direction through Asta Cita.

"In 2026, the Government has set energy security as a national priority with a budget allocation of Rp. 402.4 trillion," he explained in his statement, Wednesday, February 11.

Airlangga said this green transformation was supported by the development of renewable energy up to 3,686 GW, the construction of a green supergrid, the industrialization of electric vehicle batteries and solar panels, the development of B40-B50 biofuels, SAF, hydrogen, green ammonia, and the application of CCS/CCUS technology.

He added that the transformation was supported by international commitments, including funding for the Just Energy Transition Partnership (JETP) and the acceleration of AZEC cooperation.

According to him, in addition to strengthening energy resilience, this green economic agenda is projected to be able to create up to 4.4 million new jobs by 2029, supported through internship programs and sustainable skills development.

"The journey towards a sustainable Indo-Pacific economy and a net-zero future is not a path that can be taken alone. The synergy between Indonesian leadership and the technological excellence of regional partners including China is the driving engine of Southeast Asian economic resilience," he said.

He added that in strengthening global trade, Indonesia is actively involved in various global and regional forums such as ASEAN, APEC, G20, and COP.

Airlangga said the government was also accelerating the implementation of various strategic trade agreements, including the signing of the Indonesia-Canada CEPA, the acceleration of IEU-CEPA which is targeted to take effect in early 2027, negotiations on reducing import tariffs in the United States, and the OECD accession process to increase competitiveness and strengthen structural reforms.

Regarding bilateral relations, Airlangga said Hong Kong has a special economic partnership with Indonesia, with a trade value of around 6.5 billion US dollars and investments reaching 10 billion US dollars in recent years.

"The Hong Kong-ASEAN Free Trade Agreement which came into force in 2020 has opened economic and business relations between Indonesia and Hong Kong," he said.

Airlangga also conveyed that Indonesia's macroeconomic performance showed a constructive outlook, with economic growth in the fourth quarter of 2025 reaching 5.39 percent (yoy) and growth throughout 2025 of 5.11 percent.

He added that inflation remained under control at 3.55 percent (yoy) in January 2026, while the manufacturing PMI index was in an expansion phase for six consecutive months at 52.6.

In the external sector, Airlangga added that Indonesia recorded a trade balance surplus of US$2.51 billion in December 2025 and maintained a surplus for 68 consecutive months.

According to him, this growth is reflected in the improvement of people's welfare, reflected in the declining poverty rate to 8.5 percent, the gini ratio of 0.375, the Human Development Index increased to 75.9, and the creation of about 1.4 million jobs throughout 2025.