IKEA Foundation Supports New Energy Nexus to Catalyze A New Generation of Entrepreneurs Addressing Energy Access and Renewable Energy Challenges in Indonesia


JAKARTA, INDONESIA (AUGUST 21, 2019) – The IKEA Foundation has committed $10 million over the next three years (2019 – 2021) to support the ecosystem of entrepreneurs and accelerators addressing Indonesia’s widespread energy access and renewable energy challenges. This is following a year-long pilot in Indonesia by New Energy Nexus to test how to support local startups to drive renewable energy.

Indonesia accounts for over 35% of Southeast Asia’s energy demand while 9% of the total population (23 million people) still lack access to sustainable modern energy services. Indonesian islands such as Java and Bali consume up to 80% of the electricity demand while the other 20% of the population live in electrified areas with unreliable access to energy or non-electrified areas where rural villagers rely on kerosene lamps for their energy needs creating an unhealthy environment for their families.

Government isntalled Solar Energy panels gives power to 36 houses in the village of Weepatando in Sumba island. The Sumba Inconic Island Initiative aims to provide 100% renewable energy to the inhabitants of Sumba island within 10 years. The project is also hoped to be a replicable model in similar areas around the world. 45274-001: Scaling Up Renewable Energy Access in Eastern Indonesia (Sumba Iconic Island Initiative)

(Photo Credit: Asian Development Bank, Scaling Up Renewable Energy Access in Eastern Indonesia, Sumba Iconic Island Initiative)

“Due to Indonesia’s unique geographic characteristics of more than 6,000 inhabited islands, it is difficult for many people to access electricity, says Diyanto Imam, Program Director, New Energy Nexus Indonesia. “The obvious solution is renewable energy. It is the winning value proposition for both the economy and the environment. Coal is not as price competitive as solar and it’s only a matter of time for renewables to become abundant, close to free and accessible for all.”

New Energy Nexus Indonesia supported by the IKEA Foundation sees this as an opportunity to build and influence the energy transition from the bottom up. New Energy Nexus Indonesia plans to educate and conduct outreach programs for 6,000 people about the potential of renewable energy entrepreneurship, while directly supporting and funding many successful entrepreneurs to grow and provide families with access to renewable energy.

Shambhavi Sharma, Program Manager at the IKEA Foundation, said: “Our mission is to reduce carbon emissions and also to make sure that no one is left behind as the sustainability revolution takes off. We are supporting New Energy Nexus Indonesia because access to renewable energy needs to be made quicker and more affordable, with solutions centered around the people who need it most.”

The $10 million grant from the IKEA Foundation will help New Energy Nexus Indonesia develop the following initiatives:

  • Startup Support – Together with our partner Digitaraya, New Energy Nexus Indonesia will expand our existing energy startup acceleration program to 8 major cities across Indonesia. Startups will receive business training and mentoring, introductions to customers and investors, pitch training and will be exposed to international best practices in renewable energy service delivery.
  • Energy Access Support – This facility will specifically coach and support existing and new startups and developers on the challenges of providing electricity to off grid communities. New Energy Nexus Indonesia and partners will educate them on available sites, investment and business models, risks and returns and opportunities of developing projects in remote areas and working with the national utility (PLN) and regulators.
  • $4 million Seed Fund – This fund will provide seed grants and investments to high potential energy access and clean energy startups coming out of the New Energy Nexus Indonesia program. This seed fund will help early startups create a pathway to bring their products and services to market. We expect the seed fund to double to $8 million once launched over a period of three years.

More information about the New Energy Nexus Indonesia program can be found here.

More information about IKEA Foundation’s renewable energy work, can be found here.

New Energy Nexus

New Energy Nexus is an international organization that supports renewable energy entrepreneurs with funds, accelerators and networks. New Energy Nexus has been operating in South East Asia for several years, with programs and staff in Bangkok, Singapore, Manila, and Ho Chi Minh City. We also have a partnership in China with the Sichuan Internet Research Institute, Tsinghua University to program the Energy Internet Innovation and Entrepreneurship Center in Chengdu, Sichuan, China.

More information at www.newenergynexus.com.

IKEA Foundation

The IKEA Foundation (Stichting IKEA Foundation) works to create a better everyday life for the many people. As the philanthropic arm of INGKA Foundation, the owner of the IKEA Group of companies, we focus on improving the lives of vulnerable children by enabling their families to create sustainable livelihoods, and to fight and cope with climate change.

Learn more at www.ikeafoundation.org and www.facebook.com/IKEAfoundation.

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