IDR 1.6 billion to supercharge local solutions

Climate and clean energy start-ups will be eligible to win grants totalling IDR 1.6 billion under a new program focused on supporting green innovation.

The KINETIK NEX program will provide business incubation to 15 early-stage start-ups, including mentoring and access to investors.

KINETIK NEX is led by New Energy Nexus Indonesia – which helps clean energy and climate entrepreneurs with funding, training, and networks – and supported by KINETIK, the Australia-Indonesia Partnership for Climate, Renewable Energy and Infrastructure.

The program will end with [RE]Spark, a clean energy and climate start-up festival, where selected start-ups from the cohort of 15 will pitch their climate solutions to potential partners and investors.

Five start-ups will be awarded funding from a total of IDR 1.6 billion to pilot their climate solutions.

The KINETIK NEX program will prioritise women-led start-ups and those based in Eastern Indonesia.

Under the program journalists will also be trained in climate and clean energy reporting.

Indonesia has pledged to reach net-zero emissions by 2060 or earlier however climate start-ups continue to face barriers in accessing capital, market opportunities, and regulatory support.

According to a recent Climate Policy Initiative report, achieving Indonesia’s net-zero electricity target by 2060 will require renewable energy financing to increase by over five times, from around USD 3 billion per year to approximately USD 16 billion annually.

“Indonesia’s clean energy transition cannot succeed without empowering local innovators and ecosystem builders,” said Diyanto Imam, Director of New Energy Nexus Indonesia.

He said Indonesia had huge clean energy potential, but fossil fuels still powered 80% of the country’s electricity.

“Through KINETIK NEX, we’re helping diverse start-ups to thrive and enabling local communities to drive clean energy solutions,” Mr Imam said.

“This is about unlocking talent and ideas from every corner of Indonesia, and making the energy transition inclusive, equitable and locally driven.”