The achievement of Indonesia’s targets for a new and renewable energy mix of 23% by 2025 and reaching Net Zero Emission by 2060 or sooner is not solely the responsibility of the national level but also at the sub-national level, such as the Special Region of Yogyakarta (DIY).
The DIY province is one of the electricity-importing regions in Indonesia, apart from the Jakarta Capital Region. In 2025, approximately 97% of the electricity consumed in DIY is estimated to come from the Jawa-Madura-Bali (JAMALI) grid, with the remainder originating from local new and renewable energy sources (EBT). This is due to the limited energy sources within the DIY region. However, to achieve energy self-sufficiency and accelerate the energy transition, the DIY province needs to take concrete steps. One solution to consider is to increase the utilization of local EBT resources in line with their potential.
The increase in the EBT mix can be achieved through the accelerated adoption of clean energy technologies in DIY. Clean energy technology startups (cleantech) have significant potential to expedite the energy transition through their innovative technologies and business models. Therefore, support from the DIY Regional Government is crucial to foster the growth of the local cleantech startup ecosystem.
The cleantech startup ecosystem in DIY has experienced growth in recent years. There are at least 8 active cleantech startups across various categories, such as electricity generation, transportation, and industry & construction. However, there are several challenges faced by entrepreneurs and local governments in developing the cleantech startup ecosystem in DIY.
This report aims to summarize the condition of the cleantech startup ecosystem in DIY and provide concrete recommendations to support the development of this sector. With collaborative efforts from stakeholders, DIY can become a pioneer in clean energy innovation in Indonesia and play a role in creating sustainable and positive change.