Cleantech Startups are Key Players in Bali’s Energy Transition and Offer Significant Economic Opportunities in the Future.

New Energy Nexus (NEX) Indonesia organized a Focus Group Discussion titled “Support for the Clean Energy Technology Startup Ecosystem in Bali”, inviting various stakeholders representing cleantech startups (BTI Energy, Noa Bike, Skuti, Manouv, Azura, and Electric Wheel), local government agencies (Bali Development Agency (Bappeda Bali), Bali Energy & Mineral Agency (Disnakertransgi Bali), Bali Transportation Agency (Dishub Bali), Bali Regional Research and Innovation Agency (BRIDA Bali), Bali Regional Development Bank (BPD Bali), and PT. Jamkrida Bali Mandara), associations (Association of Electric Motor Dewata (ADAMOLIS), Rooftop Solar Power Association (APSA)), incubators (University of Udayana Business Incubator), research institutions (CORE UNUD and Setrum Analytics), and civil society organizations (Yayasan Wisnu).

At the discussion, Rayhan Alghifari, Policy & Advocacy Associate of NEX Indonesia, presented his analysis on the challenges and opportunities for supporting the development of clean energy technology startups in Bali. Rayhan also emphasized the significant role of cleantech startups in achieving Bali’s Net Zero Emission 2045 target. He pointed out that Bali has become one of the ambitious provinces in climate action, setting a net-zero emission target for 2045. To achieve this goal, the provincial government of Bali has formulated the Bali Economic Kerthi Roadmap, planning to increase the adoption of renewable energy, electric vehicles, and energy efficiency. Additionally, since 2019, the Bali government has issued three regulations to promote the adoption of clean energy technology in Bali, namely the Bali Governer Regulation No. 45/2019 on Clean Energy Bali, Bali Governor Regulation No.48/2019 on Battery-Based Electric Vehicles, and Bali Governor Circular Letter No. 5/2022 on the Utilization of Roof Solar Power Plants in Bali.

However, Rayhan mentioned that there are still substantial challenges that the cleantech startup ecosystem is facing in supporting Bali’s Net Zero Emission Target. One of the most pressing challenges is the lack of tangible implementation plans and programs to follow up on these regulations. IGN Erlangga Bayu, Founder & CEO of BTI Energy, supports this argument, stating that “the government tends to make a lot of noise, creating ceremonial celebrations in this regard, but lacks an actual program implementation, monitoring, and evaluation.”

Furthermore, several Bali-based cleantech startups also address the issue of limited access to funding as they scale up. IGN Putra Darmagita, CEO of Electric Wheel, stated, “Our startup struggles to find funding. We attempted to approach BPD Bali for funding, but they requested land certificates as collateral. With limited assets, these requirements are just burdensome.”

I Made Wicipta Adi, the chairman of the Association of Electric Motor Dewata (ADAMOLIS) pointed out the low level of public awareness relating to clean energy and technology adoption, especially EV. NEX Indonesia team also find that out of 177 vocational schools in Bali, only 3 schools offers clean energy technology program. Besides raising awareness, the Bali government needs to recognize the importance of reigniting and investing in education to cultivate local talents in this sector, considering setting ambitious goals to reach.

On the other hand, The Government of Bali explained its limitation in regard to its support to clean energy technology adoption, especially that directly addresses to the cleantech startup ecosystem. First, in terms of authority, the Bali provincial government has limitations in determining energy sector policies, considering there are other stakeholders involved in this (PLN) who has more authority in regulating Bali’s source of energy. Second, the current economic recovery after the Covid-19 pandemic has constrained the Bali provincial government’s ability to provide incentives to encourage the use of clean energy technology in Bali and to support local startups due to budget constraints.

“We can currently only stimulate clean energy technology growth through regulations, given our financial limitations,” said I Ketut Gede Arnawa, head of infrastructure and regional development at Bappeda Bali.

In conclusion, New Energy Nexus Indonesia provides recommendations to the Bali provincial government and related stakeholders to support the cleantech startup ecosystem in Bali:

The Bali provincial government to enforce implementing existing regulations.
The government should support securing funding for local cleantech startups through local institutions (BPD Bali and Jamkrida Bali). Specifically for Jamkrida, the acquisition plan of Sarana Bali Ventura and the establishment of the Bali Kerthi Development Fund (BKDF) are expected to enhance local cleantech startup access to public funding.
Lastly, the Bali provincial government should start integrate concrete strategy for escalating the cleantech startup ecosystem in Bali into regional planning documents as part of the grand plan for achieving net-zero emissions by 2045. Planning is vital as the development of the startup ecosystem involves various actors from different sectors, including finance, education, and incubators.

New Energy Nexus Indonesia believes that the Bali provincial government’s attention to the local cleantech startup ecosystem will not only help Bali achieve its climate targets but also create significant economic opportunities in the future, such as the creation of green jobs on Dewata Island.