Jakarta. Renewable energy certificates, also known as RECs, are expected to speed up the return on investments in the sector.

The Energy and Mineral Resources Ministry reported that Indonesia had amassed $1.3 billion worth of investments in the renewable energy sector in the first half of 2025. The government aims to attract $1.5 billion in renewable energy investments for the entirety of 2025, a slight increase compared to the $1.49 billion the country amassed last year.

Data by the Climate Policy Initiative (CPI) showed that the total investments in the power sector totaled $38.02 billion over the past five years. This was equivalent to $7.6 billion annually. The average annual investment specifically for renewable energy was $1.79 billion.

Fajar Wibhiyadi, the president director of the Indonesia Commodity & Derivative Exchange (ICDX), said that RECs could provide a “multiplier effect” to renewable energy power plants. 

“It can generate additional revenue beyond electricity sales. This additional revenue can certainly speed up the payback period,” Fajar said in a statement on Thursday.

According to Fajar, RECs can serve as an incentive for those developing renewable energy power plants. “They offer benefits that non-renewable power plant developers cannot enjoy. So we hope REC trading can act as a sweetener for businesses to develop renewable energy,” he said.

Indonesia boasts immense renewable energy potential ranging from solar power, hydropower, geothermal, wind, to waste-to-energy plants.