Sam Kimmins, Director of Energy at Climate Group, highlighted Indonesia’s substantial potential to accelerate the adoption of renewable energy through the RE100 initiative. However, he noted that several policy challenges currently impede companies from directly accessing green electricity.
“In Indonesia, we have 133 international members operating,” Kimmins stated during the Climate Group Asia Action Summit in Singapore on Thursday, May 21, 2026.
According to Kimmins, Climate Group is actively engaging with various Indonesian companies to encourage their participation in the RE100 campaign, a global initiative where companies commit to sourcing 100 percent of their electricity from renewable energy. This strategic outreach aims to foster a stronger commitment to sustainable practices across the nation.
He elaborated that the RE100 approach in each country consistently involves local organizations. In Indonesia, Climate Group collaborates with the Institute for Essential Services Reform (IESR) to introduce this scheme to both businesses and the government, ensuring a localized and effective implementation strategy.
Kimmins further explained the crucial role of local organizations, emphasizing their understanding of local policy landscapes and their ability to bridge communication with the government. He added that the Indonesian government has shown remarkable openness in discussions concerning renewable energy development and green investment mechanisms, signaling a positive environment for progress.
He identified one of Indonesia’s primary challenges as the absence of a mechanism allowing independent renewable energy producers to sell electricity directly to companies through the state-owned utility PLN’s grid. Schemes like Power Purchase Agreements (PPAs) are considered vital, not only for reducing the cost of green electricity but also for unlocking crucial private financing for renewable energy projects, thereby accelerating their deployment.
According to Kimmins, Climate Group is currently in productive discussions with the government regarding shared grid usage. This innovative approach would enable independent developers to supply renewable energy directly to corporate customers via PLN’s network. This proposed scheme is seen as mutually beneficial, ensuring PLN continues to earn revenue from electricity transmission services while developers gain crucial certainty regarding electricity purchasers, fostering a more stable market.
Beyond grid access issues, Kimmins also highlighted Indonesia’s prevailing fossil fuel subsidy policies. He argued that these subsidies artificially lower the perceived price of conventional energy, thereby significantly hindering the competitiveness of renewable energy solutions. Even though the production cost of renewable electricity is often inherently lower, this true price signal isn’t fully reflected in the market due to ongoing financial support for older, less sustainable energy systems.
Kimmins firmly believes that Indonesia’s energy market would become significantly more competitive and dynamic if existing regulatory barriers were effectively reduced. He clarified that Climate Group generally does not advocate for additional subsidies for renewable energy but rather champions the crucial need for opening up market access to allow clean energy to compete naturally on its own merits.
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Summary
Sam Kimmins of the Climate Group emphasizes that Indonesia has significant potential to accelerate its renewable energy transition through the RE100 initiative, which encourages companies to source 100 percent of their electricity from clean energy. Working alongside the Institute for Essential Services Reform, the organization is actively engaging with the Indonesian government and local businesses to foster sustainable practices. Kimmins notes that the government has shown a positive openness to discussions regarding green investment and renewable energy development.
However, major barriers remain, including the lack of direct Power Purchase Agreements and the presence of fossil fuel subsidies that artificially suppress the cost of conventional energy. Kimmins argues that by enabling independent renewable producers to access the state grid and removing market distortions, Indonesia can foster a more competitive and dynamic energy sector. The goal is to allow clean energy to compete on its own merits rather than relying on additional subsidies.