Greenflation causes Indonesia and Vietnam to backtrack on renewables

JAKARTA/KUALA LUMPUR/HO CHI MINH CITY -- Indonesia's recent lowering of its renewable energy targets highlights Southeast Asia's decarbonization challenges, with inflation and financing concerns growing across the region, from Malaysia to Vietnam.

Indonesia's National Energy Council in January revealed a plan to trim the target for renewables' portion in the country's primary energy mix to 17%-19% in 2025 and 19%-21% by 2030. The original target that was supposed to have kicked in next year was 23%. While setting a more ambitious goal of 70% renewables through 2060, council executives argued that the original target was simply out of reach. Currently, renewables account for only 13% of Indonesia's energy sources.