BRICS New Development Bank Fueling Indonesia's Green Energy Dream

2025-11-05 02:01:12

(MENAFN- Asia Times) Indonesia's recent decision to join the New Development Bank (NDB) may not have dominated international headlines, yet it marks a turning point in the world's fourth-most-populous country's energy future.

This partnership could decide how Indonesia finances, builds and implements its ambitious clean energy transformation plan while presenting a model for the Global South to emulate.

President Prabowo Subianto has set a bold, green target: 100% of the nation's electricity to come from renewable energy sources within a decade or sooner. The vision is inspiring but also daunting.

Coal and gas currently account for around 80% of Indonesia's electricity generation. Replacing these fossil fuels with solar, wind, hydro and geothermal power will demand not only decisive policy but also access to affordable financing. The NDB offers precisely that opportunity.

Created by the BRICS nations - Brazil, Russia, India, China and South Africa - the NDB was designed to serve as a development bank for the Global South. Its purpose is simple but profound: to fund infrastructure and sustainable development in emerging economies on fairer, more flexible terms than those offered by traditional Western-led, multilateral lending institutions.

For Indonesia, this could be transformative. Low-interest, long-term loans can support projects that commercial banks typically eschew. Such favorable financing is critical for a vast archipelago like Indonesia, where connecting renewable energy across thousands of islands requires not only power plants but also transmission lines, smart grids and storage systems. A modern grid is the backbone of any successful energy transition.

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