AHY Emphasizes The Importance Of Sustainable Green Economy Infrastructure

Coordinating Minister for Regional Infrastructure and Development (IPK) Agus Harimurti Yudhoyono (AHY) (ANTARA/Arnidhya Nur Zhafira)

JAKARTA - Coordinating Minister for Regional Infrastructure and Development (IPK) Agus Harimurti Yudhoyono (AHY) emphasized that sustainable infrastructure is the key to the energy transition and the green economy.

"The future must be built on sustainable infrastructure. Infrastructure is not only resilient and efficient, but also low in carbon, climate-resistant and inclusive," said Coordinating Minister AHY at the PYC International Energy Conference 2025 in Jakarta, Saturday, August 23.

"Infrastructure that empowers our society and becomes an anchor for the transition to a green economy," he said.

However, he considered this vision to come with urgent challenges. AHY noted that in 2024, Indonesia's new energy share will reach 14 percent, still less than the 23 percent target for 2025.

On the one hand, he said 99.83 percent of Indonesia's population now has access to electricity, but the quality is still not evenly distributed.

"Households still experience power outages of more than five hours each year and several service disruptions," AHY said.

"Electric productivity is still low, contributing less than 2 percent to GDP growth. Meanwhile, energy subsidies (also) put pressure on our national budget. These figures are not just data, but an invitation to act," he added.

He emphasized that the energy transition is no longer an option, but rather an economic, social and geopolitical need.

Coordinating Minister AHY acknowledged that funding related to the energy transition is becoming challenging at this time, thus requiring a strategic combination of instruments.

"In short, we need a new financial architecture that turns climate ambitions into an investable reality," AHY said.

He continued the Indonesian government through the 2025-2029 National Medium-Term Development Plan (RPJMN), placing sustainability as the core of public infrastructure and investment planning.

A number of advances have also occurred in various sectors ranging from transportation, maritime, to integrated housing.

"This integrated approach emphasizes the important principle that energy transitions and sustainable infrastructure must develop together. Both must strengthen each other to ensure our economic growth grows, instead of eroding our environment," he said.