Green Finance in Indonesia: Barriers and Solutions

This chapter identifies the market, policy, and governance barriers — including financial credit regulations, uncompetitive pricing, restrictive project scale, and limited access to information—to unlocking green financing for a low-carbon energy transition. We propose reform pathways via the development of mechanisms for market transparency that include the need for a wholesale electricity market and low emissions and renewable investments using tradable certificate-based policies (in particular CO2 credits), harmonization of policies across ministries and agencies, and a reduction of electricity and fossilfuel subsidies and cross-subsidies.