Investments

Five Years On, Indonesia-UK Energy Partnership Draws Rp210 Billion in Investment


TEMPO.CO, Jakarta – The Indonesia-UK clean energy collaboration program, MENTARI (Toward Indonesia’s Low-Carbon Energy Transition), has officially ended. Since 2020, the program has attracted an investment of  Rp210 billion for Renewable Energy (EBT) projects, including rural electrification, small hydropower plants, and solar energy policy studies.

The UK government handed over the results of the first phase of the program to the Ministry of Energy and Mineral Resources (ESDM) at the “MENTARI Day” event at Artotel Mangkuluhur, Jakarta, on Thursday, July 3, 2025.

The British Deputy Ambassador to Indonesia, Matthew Downing, stated that this program has encouraged energy transition through policy support, project development, and inclusive investment. “Over the past five years, this program has provided real benefits to the community and laid the foundation for deeper strategic cooperation in the future,” said Matthew.

MENTARI has recorded several achievements. These include a Domestic Component Level (TKDN) study for the solar energy and battery sectors, which recommended gradual revisions to regulations, strengthening local industries through incentives, technology, and simplification of permits.

The program also distributed grants worth Rp21 billion through the Viability Gap Fund (VGF) scheme, which triggered the construction of three small hydropower plants in Lombok, Bali, and West Sumatra with a combined capacity of 7.1 MW.

Additionally, MENTARI has constructed a 95 kWp mini-grid solar power network spanning two villages in Central Sumba, East Nusa Tenggara. This project provided electricity to 238 households, public facilities, and 16 micro-businesses that previously had no access to electricity.

The Secretary General of the Ministry of ESDM, Dadan Kusdiana, ensured that the government will continue this program to its second phase. “We will utilize the results of MENTARI to accelerate electrification, especially in the eastern regions of Indonesia. In the future, we aim for MENTARI 2 to be more financially efficient but have a greater impact,” said Dadan.

He mentioned that MENTARI 2 will be part of the strategic partnership between the UK and Indonesia, following the agreement between UK Prime Minister Keir Starmer and Indonesian President Prabowo Subianto during their bilateral visits last year. “The main focus remains on a fair and sustainable energy transition for a greener future,” said Dadan.

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