THE ROLE OF RENEWABLEENERGY ZONES (REZ) ADVANCING INDONESIA’SINDUSTRIAL ENERGY TRANSITION:THE ROLE OF RENEWABLEENERGY ZONES (REZ) Prepared by Contact Information The Institute for Development of Economics and Finance –Green Transition Initiative (INDEF GTI) The Institute for Development of Economics andFinance – Green Transition Initiative (INDEF GTI) South Tower, Sampoerna Strategic SquareJl. Jend. Sudirman Kav. 45–46Jakarta Selatan 12930, IndonesiaEmail: contact@indefgti.or.idWebsite: www.indefgti.or.id Systemiq In Strategic Collaboration With Coordinating Ministry for Economic Affairs of theRepublic of Indonesia Systemiq Gran Rubina, Rasuna Epicentrum Business ParkJl. H. R. Rasuna Said, 16th FloorKaret Kuningan, SetiabudiJakarta Selatan 12940, IndonesiaEmail: contact@systemiq.earthWebsite: www.systemiq.earth Contributors The Institute for Development of Economics and Finance –Green Transition Initiative (INDEF GTI) Imaduddin AbdullahSaraya Cita AsmaraniGading Kevin Jerico SimarmataAlifa Ayuni Prasetyo © INDEF GTI & Systemiq, 2026 SystemiqMattia RomaniWidharmika AgungBatari SaraswatiAbindra Pradika SoemaliDaniel KurniawanChristian Sandjaja Citation If reproducing or referencing this report, please use thefollowing citation: INDEF GTI–Systemiq (2026).Advancing Indonesia’sIndustrial Energy Transition: The Role of RenewableEnergy Zones (REZ). ACKNOWLEDGEMENT INDEF and Systemiq would like to express their sincere gratitude to Mr. Rizal Edwin Manansang,Acting Secretary General of the National Council for Special Economic Zones (KEK), as well as Mrs.Farah Heliantina, Assistant Deputy for the Acceleration of Energy Transition, Coordinating Ministryfor Economic Affairs, for their guidance and valuable insights throughout the research process. INDEF and Systemiq also extend their appreciation to PT PLN (Persero), the Ministry of NationalDevelopment Planning (Bappenas), the Ministry of Energy and Mineral Resources (ESDM), and RMIChina Program for their inputs and constructive feedback, particularly during the in-depth interviewsconducted at the drafting stage of this report. In addition, the authors would like to thank the institutions that participated in the policy dialoguesand high-level discussions convened as part of this study, including the Ministry of Finance(Directorate of Strategy for State Budget Revenue and Expenditure), the Ministry of Energy andMineral Resources (Directorate of Energy Conservation and Directorate of Strategic ElectricityDevelopment), the Ministry of Investment and Downstreaming / Investment Coordinating Board(BKPM) (Directorate of Downstream Strategy and Governance and Directorate of Mineral and CoalDownstreaming), the Ministry of Industry (Green Industry Center), the National Council for SpecialEconomic Zones, the Secretariat General of the National Council for Special Economic Zones (Legal,Human Resources, and Organizational Division), PT Danantara Indonesia, PT Suryacipta Swadaya,PT Trimegah Bangun Persada, the National Energy Transition Task Force Supporting Team (RumahPATEN), and the Institute for Essential Services Reform (IESR). INDEF and Systemiq would also like to extend their appreciation to all stakeholders andcounterparts who contributed to the research process but could not be individually acknowledgedin this report. ENDORSEMENT “Indonesia’s growth ambitions will depend on how effectively energyplanning can keep pace with industrial and economic expansion. RenewableEnergy Zones offer a strategic approach to concentrate on clean powerdevelopment where it is most viable and most needed, enabling more efficientgrid planning, lower system costs, and faster project execution. From anenergy planning perspective, REZ provides a structured pathway to deliverreliable and affordable electricity at scale that could strengthen economiccompetitiveness, attract investment, and support long-term, resilient growth.” Dr. Fadhil Hasan,Co-Founder & SeniorEconomist, INDEF;Member of the NationalEnergy Council “Harmonizing economic growth with decarbonization is a difficult task formany Asian nations. Indonesia’s creative approach to combining RenewableEnergy Zones with Special Economic Zones, as well as China’s experiencecreating integrated renewable energy bases and eco-industrial parks, bothprovide important insights into green industrialization and spatial design. Inaddition to strengthening national energy transitions, regional collaborationin clean technology and green investment can provide practical models andfresh impetus for global climate resilience.” RMI ChinaProgram “The transformation to clean industry at scale depends on the coordinateddelivery of clean power, grids, land readiness, and, crucially, demandfor clean materials, chemicals, and fuels. This report shows how linkingRenewable Energy Zones with Special Economic Zones can turn Indonesia’senergy transition into a practical execution platform, reducing delivery risk,accelerating investment, and