The Role of the East Nusa Tenggara Provincial Government in Supporting the Ecosystem of Clean Energy Technology Startups (Cleantech Startups) in East Nusa Tenggara

Author: Fadilla Miftahul
Note: The policy brief is written in Indonesian. 


Indonesia recently updated its renewable energy (RE) mix targets in the Second Nationally Determined Contribution (SNDC) 2024. The document outlines a phased RE mix target until 2060: 19-22% by 2030, 36-40% by 2040, and 70-72% by 2060. Unfortunately, these targets are not aligned with the reduced national RE mix target proposed by the Ministry of Energy and Mineral Resources (ESDM) in early 2024 for the revised National Energy Policy (KEN), which adjusted the 2025 RE mix target to 17-19%. This national adjustment will inevitably influence regional RE mix targets, including those in East Nusa Tenggara (NTT).

In the NTT Regional Energy Plan (RUED) 2019, the NTT Provincial Government set a renewable energy mix target of 24% by 2025 and 39% by 2050. However, these targets aim to utilize only 0.54 GW of RE potential by 2025 and 2.24 GW by 2050, while the total RE potential in NTT reaches 23.8 GW. This highlights a significant gap between the installed capacity targets and the region’s renewable energy potential. By 2022, the realized RE mix in NTT stood at just 15.74%.

The transition to renewable energy in NTT faces numerous challenges, particularly the need to first address energy access issues in remote areas. Despite achieving a 93.4% electrification ratio by 2022, 12 districts in NTT still have electrification rates below 90%. This underscores a significant access disparity that must be resolved before fully transitioning to renewable energy.

To address these energy access challenges, this policy brief examines the landscape of cleantech startup ecosystems and analyzes the obstacles they face, including regulatory barriers, funding limitations, and human resource constraints. It also provides recommendations to support the development of cleantech startups in NTT, based on secondary data from open sources and primary data through interviews and focused group discussions (FGDs) with stakeholders.

The Role of the East Nusa Tenggara Provincial Government in Supporting the Ecosystem of Clean Energy Technology Startups (Cleantech Startups) in East Nusa Tenggara