Clean Energy Technology Startups in Indonesia How The Goverment Can Help The Ecosystem

Clean energy technology
startups in Indonesia:
How the government can help
the ecosystem
Publication: August 2023
Copyright © 2023 New Energy Nexus Indonesia,

All rights reserved
Reporting Team
Pamela Simamora
Lead author and editor
Nuril Hidayati
Co-author
Muhammad Rayhan Alghifari

Survey visualization
Acknowledgement
We would like to express our deep appreciation to all the contributors who participated in the development of this report,
including interviewees, survey respondents, and focus group discussion participants. Their valuable insights, thoughtful
comments, and candid feedback have been instrumental in shaping the contents of this report. We would like to
extend our sincere gratitude to each and every one of them for their willingness to share their experiences, opinions,
and perspectives, and for providing us with the information and data necessary to produce a comprehensive and
meaningful report. Their contributions have helped to make this report more accurate, relevant, and insightful.
Once again, we would like to thank all of the interviewees, survey respondents, and focus group discussion
participants for their invaluable contributions to this report.
Clean energy technology startups in Indonesia:

How the government can help the ecosystem
2
Foreword from our Program Director
As the world faces the escalating consequences of climate change, the need for urgent
action is clear. Countries worldwide are grappling with the daunting task of transitioning
to clean energy to mitigate the impacts of carbon emissions. In this context, cleantech
startups play a pivotal role in driving this transition. These innovative enterprises
possess the potential to disrupt the energy sector, expedite the shift to clean energy,
and contribute significantly to achieving net-zero targets.
While governments worldwide have recognized the importance of fostering a

supportive environment for clean energy startups, Indonesia still lags behind. This
report addresses this critical gap.
Prepared by New Energy Nexus Indonesia, the leading ecosystem builder for clean
energy startups in the country, this report provides a solid foundation for evidence-
based policy advocacy. Through extensive research, surveys, interviews, and focus
group discussions, this report sheds light on the challenges faced by all stakeholders,
including startups, investors, incubators, policymakers, and civil society organizations.
Diyanto Imam Additionally, it outlines the necessary measures the government must take to effectively
address these challenges.
Program Director
New Energy Nexus Indonesia This report serves as a compelling call to action, emphasizing the critical need for
the Indonesian government to foster an ecosystem that nurtures the growth of these
startups. Supporting cleantech startups extends beyond environmental concerns.
The growth of this sector holds tremendous potential for job creation, economic
development, and technological innovation. By investing in these startups, the
Indonesian government can address climate goals, stimulate economic growth, and
enhance the country’s competitiveness in the global marketplace.
The time for action is now.

3
List of Abbreviations
3S : Sumba Sustainable Solution BUMD : Badan Usaha Milik Daerah (regional owned enterprise)
ADB : Asian Development Bank CEO : Chief Executive Officer
AIBI : Asosiasi Inkubator Bisnis Indonesia CFPP : Coal-Fired Power Plant
(Indonesian Business Incubator Association) CV : Persekutuan Komanditer (Limited Partnership)
AMVESINDO : Asosiasi Modal Ventura dan Startup Indonesia Deep-tech : Deep technology
(Association of Indonesian VC and Startups) Dena : Deutsche Energie-Agentur (German Energy Agency)
ANGIN : Angel Investment Network DISTP UI : Direktorat Inovasi dan Inkubator Bisnis
App : Application (Directorate of Innovation and Business Incubator of UI)
ASEAN : Association of Southeast Asian Nations DJKI : Direktorat Jenderal Kekayaan Intelektual
AVTM : Advanced Technology Vehicle Manufacturing (General Directorate of Intellectual Property)
Baparekraf : Badan Pariwisata dan Ekonomi Kreatif DKI : Daerah Khusus Ibukota (Special Capital District)
(Ministry of Tourism and Creative Economy) DOE : Department of Energy
Bappenas : Badan Perencanaan Pembangunan Nasional E2W : Electric 2 Wheelers
(Ministry of National Development Planning) E4W : Electric 4-Wheelers
BBNKB : Bea Balik Nama Kendaraan Bermotor EBC : Eligible Business Corporation
(motorized vehicle title transfer fee) E-commerce : Electronic Commerce
BC : British Columbia Edutech : Education Technology
BETD : Berlin Energy Transition Dialogue ELSA : E-Layanan Sains (E-Science Services)
BEV : Battery Electric Vehicle EOR : Enhanced Oil Recovery
Biotech : Bio Technology E-sport : Electronic Sport
BNI Ventures : Bank Negara Indonesia Ventures ESCO : Energy Service Company
BPJS Kesehatan : Badan Penyelenggara Jaminan Sosial Kesehatan Etc : Etcetera
(health insurance program) ETIC : Energy Transition Innovation Challenge
BPJS : Badan Penyelenggara Jaminan Sosial Ketenagakerjaan ETS : Emission Trading System
Ketenagakerjaan (workers’ social security) EU : European Union
BPS : Badan Pusat Statistik (Central Bureau of Statistics) EV : Electric Vehicle
BRI Ventures : Bank Rakyat Indonesia Ventures FAQ : Frequently Asked Question
BRIN : Badan Riset dan Inovasi Nasional FCEV : Fuel Cell Electric Vehicle
(National Research and Innovation Agency) Fintech : Financial Technology
BSN : Badan Standardisasi Nasional Fisipol : Fakultas Ilmu Sosial dan Ilmu Politik
(National Standardization Agency) (Faculty of Social and Political Science)

4
FIT : Feed in Tariff ITB : Institut Teknologi Bandung
FTP : Fast Track Program IUPTL : Izin Usaha Penyediaan Tenaga Listrik Umum
FYP : Five Year Plan (Business License for Electricity Provision)
G20 : Group of Twenty Jatim : Jawa Timur (East Java)
GDP : Gross Domestic Program KADIN : Kamar Dagang Indonesia
GERD : Gross Domestic Expenditure on Research and Experimental (Indonesian Chamber of Commerce & Industry)
Development Kedaireka : Kerja Sama Dunia Usaha dan Kreasi Reka
(Business Cooperation and Creative Creations)
GETI : Global Energy Talent Index
Global Impact Investing Network Kemensetneg : Kementerian Sekretariat Negara (Ministry of State Secretariat)
GIIN :
KISED : Korea Institute of Startup & Entrepreneurship Development
GITE : Green Income Tax Exemption
KPI : Key Performance Indicator
GIZ : The Deutsche Gesellschaft für Internationale Zusammenarbeit
kVA : Kilo Volt-Ampere
GPP : Green Public Procurement
LCC : Life Cycle Costing
GR : Government Regulation
LCR : Local Content Requirement
GST : Goods and Services Tax
LEED : Leadership in Energy and Environmental Design
GW : gigawatt
Li-on : Lithium-Ion
Hivos : Humanist Institute for Cooperation
LIPI : Lembaga Ilmu Pengetahuan Indonesia
High-tech : High technology
(Indonesian Institute of Sciences)
HoA : Head of Agreement
LKPP : Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah
HQ : Headquarter
(National Procurement Board)
ICEV : Internal Combustion Engine Vehicle
LLC : Limited Liability Company
ICT : Information and Communication Technology
LNG : Liquified Natural Gas
IDR : Indonesia Rupiah
LPG : Liquefied Petroleum Gas
IEA : International Energy Agency
LPIK ITB : Lembaga Pengembangan Inovasi dan Kewirausahaan ITB
IESR : Institute for Essential Services Reform (ITB Innovation and Entrepreneurship Development Institute)
IITC : Innovation Investment Tax Credit
MBKM : Merdeka Belajar Kampus Merdeka
IO : Izin Operasi (operating license)
MCI Ventures : Mandiri Capital Indonesia Ventures
IoT : Internet of Things
MCSME : Ministry of Cooperative and Small Medium Enterprise
IP : Intellectual Property
MDI Ventures : Metra Digital Inovasi Ventures
IPO : Initial Public Offering
MECRT : Ministry of Education, Culture, Research, and Technology
IRA : Inflation Reduction Act
MEMR : Ministry of Energy and Mineral Resources
IRD : Inland Revenue Department
MGTC : Malaysian Green Technology Corporation
IRL : Innovation Readiness Level
IRESEN : Institute for Solar Energy and New Energies
5
MIIT : Ministry of Industry and Information Technology PKB : Pajak Kendaraan Bermotor (motorized vehicle tax)
MIKTI : Masyarakat Industri Kreatif Teknologi Informasi dan Komunikasi PLN : Perusahaan Listrik Negara (National Electricity Company)
Indonesia (Indonesia Digital Creative Industry Society) PMK : Peraturan Menteri Keuangan (Ministry of Finance Regulation)
MIPC : Mobile Intellectual Property Clinic PPBR : Pendanaan Perusahaan Pemula Berbasis Riset
MoCI : Ministry of Communication and Information (research-based startup funding)
MoEF : Ministry of Environment and Forestry PPP : Public Private Partnership
MoF : Ministry of Finance PR : Presidential Regulation
MoI : Ministry of Industry PUC : Productive Use Centre
MoT : Ministry of Transportation PV : Photovoltaic
MSME : Micro, Small, and Medium Enterprise QMTC : Qualified Maryland Technology Company
MSOE : Ministry of State-Owned Enterprises R&D : Research and Development
MVP : Minimum Viable Product RE : Renewable Energy
MW : megawatt Reg-tech : Technology-based regulatory platform
N-CET : National Clean Energy Testbeds RMB : Renminbi
NDC : Nationally Determined Contribution RPJMD : Rencana Pembangunan Jangka Menengah Daerah
NEV : New-Energy Vehicle (Regional Medium Term Development Plan)
NEXICORN : Next Indonesian Unicorn RPTKA : Rencana Penggunaan Tenaga Kerja Asing
NGO : Non-Governmental Organization (Plan for Using the Foreign Worker)
NPWP : Nomor Pokok Wajib Pajak (taxpayer identification number) RUED : Rencana Umum Energi Daerah (Regional Energy Plan)
NRE : New Renewable Energy RUKN : Rencana Umum Ketenagalistrikan Nasional
(General Plan of National Electricity)
NREL : National Renewable Energy Laboratory
RUPTL : Rencana Usaha Penyediaan Tenaga Listrik PT PLN
NZE : Net Zero Emission
(PLN’s Electricity Supply Business Plan)
OECD : Organisation for Economic Co-operation and Development
SaaS : Software as a Service
OJK : Otoritas Jasa Keuangan (Financial Services Authority)
SAO : Startup Assistance Organization
OSS : Online Single Submission
SBIR : Small Business Innovation Research
PBB-P2 : Pajak Bumi dan Bangunan Perdesaan dan Perkotaan
SBVCTC : Small Business Venture Capital Tax Credit
(Land and Building Tax for the Rural and Urban Sector)
SCG : Shenzhen Capital Group
PBG : Persetujuan Bangunan Gedung (building approval fees)
SES : Synergy Efficiency Solutions
PCD : Pollution Control Department
SET : Start Up Energy Transition
PHEV : Plug-in Hybrid Electric Vehicle
SISP : Swedish Incubators & Science Parks
PISA : Programme for International Student Assessment
SLO : Surat Laik Operasi (operating certificate)
PJBL : Perjanjian Jual Beli Listrik (Power Purchase Agreement)

6
SME : Small and Medium Enterprise VET : Vocational Education and Training
SNI : Standar Nasional Indonesia (Indonesian National Standard) WEC : World Energy Council
SOE : State Owned Enterprise WIPO : World Intellectual Property Organization
Soonicorn : Soon to be unicorn Y-o-y : year-on-year
SPO : Suspensions of Payment Obligations
STARFINDO : Asosiasi Startup for Industry Indonesia
(Indonesian Startup For Industry Association)
STEM : Science, Technology, Engineering, and Math
STP : Science Techno Park
STTR : Small Business Technology Transfer
SWITCH-Asia : SWITCH-Asia
SCP : Sustainable Consumption and Production
TBI : Technology Business Incubator
TCO2e : Tonne of Carbon Dioxide Equivalent
TMI : Telkomsel Mitra Inovasi
TOE : Tonne of Oil Equivalent
TRL : Technology Readiness Level
TVET : Technical and Vocational Education and Training
UGM : Universitas Gadjah Mada
UI : Universitas Indonesia
UI/UX : User Interface/User Experience
UK : United Kingdom
UK Pact : United Kingdom Partnering for Accelerated Climate
Transitions
UNDP : United Nation Development Programme
UNS : Universitas Sebelas Maret
US : United State
USA : United State of America
UV : Ultra Violet
VA : Volt Ampere
VAT : Value Added Tax
VC : Venture Capital

7
Executive Summary Indonesia’s primary energy supply
in percentage (%)
Energy Transition in Indonesia 100
6.66 8.6 9.19 11.27 12.16 12.3
21.39 19.68 18.52
• The Indonesian government has established a net-zero emission (NZE) target, aiming 17.46 16.82 13.92
to achieve it by 2060 or earlier. However, this target is not aligned with the 1.5-degree 75
37.31 31.4
decarbonization pathway required by countries worldwide. 30.52 32.99 38.52 37.62
• The energy transition in Indonesia is progressing slowly as renewables only represented 50

12.3% of the primary energy mix in 2022, falling short of the 2025 target of 23%. Despite 41.43 42.38
38.72
the enactment of a regulation on the early retirement of coal power plants, renewable 34.97
32.75 33.4
energy accounted for only 14.11% of power generation in 2022. In the transportation 25
sector, although there has been a significant increase in electric vehicle (EV) adoption
from 2021 to 2022, EVs still make up only 0.023% of the total vehicle fleet. Furthermore,
0
the government has implemented stricter criteria for energy conservation measures 2017 2018 2019 2020 2021 2022
through GR 33.
NRE Gas Coal Oil
Data Source: MEMR, 2021a; MEMR, 2023
• The energy transition faces several challenges, including the misalignment of
national and sub-national targets, regulations that do not support renewable energy The cleantech startup ecosystem in Indonesia
development, especially rooftop solar PV, due to oversupply issues, inadequate
investment in renewable energy and energy efficiency projects, the continuation of Power Sector
fossil fuel subsidies, and the absence of mandatory carbon pricing mechanisms.
• Globally, the participation of cleantech startups in energy transitions is on the rise.

Prominent examples include Tesla, which has disrupted the transportation sector Transportation Sector
since its establishment in 2003 as a startup. The cleantech sector not only drives
environmental sustainability but also presents substantial economic opportunities.
The United States, for instance, has created 3.2 million new green jobs in its cleantech
industry in 2021, highlighting the potential for job creation and economic growth in this
sector.
Industrial & Building Sector
• A similar trend is also evident in Indonesia, with around 300 cleantech startups
operating in the country. Among them, notable startups such as Xurya and Swap Energi
have successfully secured funding up to Series A. This indicates the growing interest
and support for cleantech innovation and entrepreneurship in Indonesia.
8
Executive Summary Startup Founding Year
50%
Cleantech Startups
40%
• A survey of 50 clean energy technology startups in Indonesia reveals that the majority
(82%) were established between 2019 and 2022, indicating a growing cleantech startup
30%
ecosystem in the country. Around 52% of the startups are based in tier-1 cities, known *by
for better socioeconomic and physical infrastructure conditions. However, there is a September
2022
rising trend of cleantech startups being established in non tier-1 cities, with an average 20%
growth rate of 48% between 2017 and 2022, indicating increased interest in cleantech
entrepreneurship in these areas. 10%
• Surveyed startup founders in the cleantech ecosystem are mainly young entrepreneurs 0%
2012 2014 2016 2017 2018 2019 2020 2021 2022*
who believe their business ideas can capture market opportunities while at the same
time helping protect the environment. The emphasis on environmental protection Out of business Operating
coincides with increased awareness of environmental issues among young people
(gen z and millennials) at around 82% in 2021. Despite the energy sector being male-
dominated, the survey revealed that 45% of cleantech startups had at least one Cleantech Startup Runway
female founder. The majority of cleantech startups have multiple founders, often with
backgrounds in STEM, but recognizing the need for diverse skill sets in fields such as
business, management, and finance. 12
11
• The survey findings indicate that the majority of cleantech startups rely on founders’ 9
personal savings as their main source of funding. Our survey shows that only one
startup, Swap Energy, has reached the pre-series A funding round. Other cleantech
startups are either still in the bootstrapping phase or at the pre-seed stage. Furthermore,
the survey reveals that most of the still-operating cleantech startups have a relatively 1 1 1
short runway. Approximately 22 of them can only sustain their operations for the next 1
to 6 months before running out of cash, while only 11 startups claim to have a runway
exceeding 12 months.
• Among the 42 still-operating cleantech startups, approximately 64% claim to be at

<1 1-3 4-6 7-9 10-12 >12
either the concept stage (ideation/prototyping) or the pilot stage (testing solutions on month months months months months months
partners and customers). Meanwhile, all the startups that are now out of business failed
at these early stages
9
Executive Summary
Investors
• Indonesian venture capitalists (VCs) primarily invest in fintech startups, while enterprise software, food, and transportation segments have also received significant
investments. However, cleantech startups have received limited attention from local VCs. Notably, East Ventures and Saratoga invested in Xurya, a solar power
rental and installation startup, during a series A funding round. Kejora Capital invested in Swap Energy, an e-mobility startup focused on building battery swapping
infrastructure.
• Interviews with VCs and the Association of Indonesian Venture Capitals and Startups (AMVESINDO) highlight regulatory barriers as the main factor preventing
investments in cleantech startups. The existing policy and regulatory framework in Indonesia are perceived as unsupportive of rapid renewable energy adoption,
energy efficiency technologies, and electric vehicle (EV) penetration. Consequently, the demand for cleantech products is relatively low, making them less attractive
for investors.
Venture Number of Portfolio in

Portfolio by industry Funding stage Ticket size
capital portfolio cleantech startups
360 (mainly
Fintech, media, marketing, food, enterprise, software, Pre-Seed, Seed, Pre-Series A, Series A, Series B,
East Venture in Japan and 1 $100K-$10M
jobs recruitment, transportation, education, telecom Series C
Indonesia)
Fintech, healthcare, logistics, agritech, e-commerce, $100K-$5M (early)

MDI Ventures 49 (Indonesia) Seed, Pre-Series A, Series A, Series B, above Series B 0
edutech, smart city $5M-$20M (growth)
Alpha JWC Pre-Seed, Seed, Pre-Series A, Series A, Series B,

55 Fintech, food, marketing, enterprise, software, travel 1* $100K-$30M
Ventures Series C
AC Ventures 47 Fintech, transport, food, enterprise, software Pre-Seed, Seed, Pre-Series A 0 $500K-$1M
Fintech, e-commerce, agritech, food & beverage, Pre-Seed, Seed, Pre-Series A, Series A, Series B and $200K-$2M (early)
BRI Ventures 18 0
logistic, biotech SaaS above, Pre-IPO, secondaries $2M-$20M (growth)
$500K-$1M (early)
MCI 21 Fintech, e-commerce, biotech, agritech Seed, Pre-Series A, Series A, Series B, above Series B 0 $2M-$20M (growth)
$25M-$30M (late)
Kejora Seed, Pre-Series A, Series A, Series B, above Series $250K-$3M (early)

10 Fintech, transport, enterprise, software, battery 1
Capital B, Pre-IPO Up to $20M (growth)
Saratoga
Investama 4 Energy, fintech, marketing Seed, Series A, Series B, Growth equity non VC 1 No information
Sedaya
*Alpha JWC has invested in PT Ilectra Motor Group (IMG) -also known as ALVA- which manufactures electric
motorcycles. The company is the subholding of the coal mining company, Indika Energy, hence a spin-off startup
company. Clean energy technology startups in Indonesia:
10
Executive Summary
Sector supported by incubator respondents Cleantech startups supported by incubator respondents
60% 25%
20%
40%
15%
10%
20%
5%
0% 0%
Energy Solar PV Wind Biomass EV Energy Geothermal
Retail and
Consumption
Agriculutre
Environment
Energy
Education
Healthcare
Others
Supply Chain
Fintech
ICT
Biotechnology
Efficiency Turbine Storage
Incubators
• According to data from the Indonesian Business Incubator Association (AIBI), there are over a hundred incubators in Indonesia, with many of them being university-
affiliated. In our survey of 34 incubators, accelerators, and venture builders, it was found that the clean energy sector was not a priority sector for most respondents.
The top sectors of preference were retail and consumption, agriculture, and the environment. Among those that have supported cleantech startups, around 60% have
incubated energy efficiency startups, while other clean energy technologies they have supported include solar PV, wind turbines, biomass, electric vehicles, energy
storage, and geothermal. Challenges faced by these incubators include the lack of in-house experts and coaches with knowledge of clean energy technologies and
businesses, low demand for clean energy technologies, and high capital expenditures.
• When asked about government incentives that could encourage increased support for cleantech startups, respondents primarily highlighted the need for funding.
Other incentives that would motivate incubators, accelerators, and venture builders to support cleantech startups include a supportive regulatory framework for
clean energy technologies, access to R&D funds, ease of obtaining business permits and SNI certification, tax reductions for organizations supporting clean energy,
infrastructure such as laboratories and co-working spaces, capacity building for incubator staff in clean energy businesses, access to markets, and public procurement
opportunities for cleantech startups’ products and services.

11
Executive Summary
Government
Income tax exemptions on a share of profits VCs earn from their equity participation in MSMEs with annual net
Income tax exemptions sales of no more than IDR 50 Billion ($3.5M). VCs must wait for an extended period to benefit from income tax
exemptions, as they are contingent on the profitability of the MSMEs/startups they invest in. If the startups fail to
Tax incentives for become profitable, VCs will not receive any tax incentives.
investors
A tax allowance equivalent to 30% of investment in 17 business sectors, including micro and mini hydropower
Tax allowance plants with investments below IDR 100 billion ($6.7 million) and geothermal investments for exploration and
drilling purposes. No incentives for other types of cleantech.
Businesses with annual revenue of no more than IDR 4.8 Billion ($310K) can enjoy a final income tax rate of
Lower income tax rates and 0.5%. SMEs owned by individuals who earn a maximum revenue of IDR 500M ($35K) within one tax year are not
exemptions subject to income tax.
Tax incentives for Value Added Tax (VAT) Small businesses with a revenue of less than IDR 4.8 Billion ($310K) in one fiscal year are exempted from paying
startups exemptions Value Added Tax (VAT).
Import duty exemptions are available for machinery, goods, and materials used in the energy sector, including
Import duty exemptions
boilers and photovoltaic modules. Startups can apply for a 0% import duty on solar modules purchased from
China.
Deduction of up to 300% of R&D costs from taxable gross income, with a maximum additional deduction of
Research & Development 200% for meeting criteria such as patent generation and commercialization.
Fiscal Super tax
incentives deduction
Vocational training Deduction of up to 200% of vocational activity expenses from taxable gross income with a default of 100% and a
maximum additional deduction of 100% for meeting certain criteria.
The recent introduction of EV subsidies in March 2023 has boosted cleantech startups in the EV sector, making EV adoption more
Subsides and tax affordable and encouraging market growth. However, subsidies for two-wheel BEVs have not significantly increased sales due to
reduction
strict eligibility criteria. In Bandung, a tax reduction program promotes green buildings and benefits cleantech startups in energy
efficiency and renewable energy.
The government’s implementation of a carbon pricing scheme has been postponed to 2025 due to concerns over increased product
Carbon pricing
prices. The carbon tax rate in Indonesia is lower than recommended by the World Bank. A voluntary carbon trading system has been
launched in the power sector with 42 companies participating. While carbon pricing can benefit cleantech startups, the relatively low
carbon prices and voluntary participation may not provide a level playing field against fossil fuel subsidies.

12
Executive Summary
Government
Available through startup competitions such as Startup4Industry and Energy Transition Innovation
Challenge (ETIC). Some startup founders are hesitant to participate in multiple competitions due to
Grant prizes
concerns about the lack of government support for scaling up. The financial support provided through
this scheme is relatively small compared to the funding needs of startups.
Available through incubation and accelerator programs such as PLN Elevation and BRIN PPBR.
Grants via
calls Government incubation programs are generally seen as ineffective and not providing substantial
assistance to startups. The government is often perceived as having a project-based mindset rather
than focusing on long-term support for startups.
Financial
incentives
Available through the Matching Fund. Challenges accessing the Fund include a lengthy application
R&D funds process, excessive paperwork, limited time for research and development, lack of information
dissemination, and a 50% cash contribution requirement.
Indonesian government’s equity investments through state-owned VCs primarily target digital startups
Equity
investments like fintech, lacking any portfolio in cleantech startups. State-owned VCs justify their investment focus
based on alignment with their parent companies’ core businesses and a more risk-averse approach
due to government accountability for losses. The recently launched-Merah Putih Fund and Energy
Fund might support cleantech startups, but uncertainties surround the implementation of the funds.

13
Executive Summary
Government Indonesia’s business initiation process is lengthier and more complex than OECD countries, hindering entrepreneurial
Ease of doing
business
potential. The government has introduced the Online Single Submission (OSS) platform to simplify licensing and permits,
but challenges in navigation and reliability of assistance persist.
Regulation 112 offers hope for renewable energy developers, but its success depends on PLN’s procurement processes.
Regulation 26 allows rooftop solar PV installation, but complex permits and capacity restrictions make it unattractive for
Regulations startups. Subsidies for two-wheel electric vehicles have not resulted in a significant sales increase due to stringent eligibility
criteria and limited recipients. Regulation 33 introduces stricter energy management criteria, but details on incentives
and enforcement remain unclear. The minimum capital requirement and the venture fund structure create inflexibility for
venture capital firms.
Research infrastructure is vital for cleantech startups, but access to equipment and high rental prices are challenges.
Infrastructure
The government’s STPs initiative has limited impact, and R&D funding is low, hampering innovation and growth in the
cleantech sector.
Incubation Government incubation programs, such as PLN Elevation by PLN and Koridor by the Surabaya City Government, exist
programs at national and local levels. However, challenges arise for startups due to limited information on the programs and the
absence of a clear succession plan of the initiatives, discouraging cleantech startups to participate.
Ministries, such as the MoCI and the MoSOE, organize events like NeXICORN and BUMN Startup Day to boost startup
Non financial Networking
incentives and mentoring capabilities and foster networking opportunities. However, these initiatives face challenges such as providing generic
mentoring materials that lack customization, a lack of program continuity, and inadequate evaluation and feedback on their
effectiveness.
Business There is a lack of support for local startups seeking to expand abroad and of specialized marketing services needed to
services enhance the reach of cleantech startups to a wider target market.
Startups encountered difficulties during their intellectual property (IP) and SNI (National Standardization) application
Patent and SNI
applications
process, which involved lengthy waiting periods, interaction with multiple officers, and a lack of updates on the progress of
their applications.
Indonesia has a lower number of engineers per capita compared to Vietnam and South Korea, and cleantech startups still
Education face challenges in hiring technicians with expertise in clean energy technologies, especially in the EV industry, despite the
increase in vocational schools offering renewable energy programs.
Green Public The limited classification of goods and services as eco-friendly under the Green Public Procurement (GPP) regulation
Procurement hampers the participation of cleantech startups. Unlike mandatory policies for domestic and SME products, GPP remains
voluntary, hindering the expansion of green industries and government support for environmentally friendly offerings.

14
Executive Summary Government incentives received by cleantech startups
60%
Government
• Despite the availability of various incentives for SMEs, including startups, offered 40%
by the Indonesian government, most cleantech startups surveyed have not taken
advantage of these incentives. This can be attributed to a lack of awareness and
information dissemination regarding the specific incentives and eligibility criteria, 20%
as well as the complex application process and administrative requirements
involved.
0%
• The survey results reflect the limited engagement between cleantech startups and None Non- Fiscal and
financial financial
government officials. This can be ascribed, in part, to the government’s limited
knowledge and understanding of the cleantech startup ecosystem in the country.
The expected roles of NGOs based on survey
to cleantech startups
NGOs awareness
promotion project
network
research
• According to our survey, cleantech startups recognize the significance of NGOs in
the cleantech startup ecosystem. They believe that NGOs can play a vital role in funding
increasing public awareness of energy efficiency and clean energy issues through
campaign activities. Other than campaign, NGOs can help cleantech startups
in other activities such as joint energy projects, market analysis, cleantech
promotion, and policy advocacy.
• Half of the startups surveyed had no prior interactions with NGOs. Those who NGOs that startups have interacted with
did mostly named New Energy Nexus Indonesia, GIZ, UK Pact, Hivos, and IESR.
Given only few NGOs have exposure to cleantech startups, more engagement
should be initiated in the future. Our focus group with environmental NGOs
revealed their eagerness to support cleantech startups. The main challenge lies
in establishing connections between NGOs and cleantech startups for potential
collaboration.

15
Executive Summary
Pain Points Recommendations
Tax incentives for investors exist but come with certain limitations or Offer tax credits for individual and corporate investors to boost investment
restrictions. in cleantech startups.
The super tax deduction, designed to stimulate R&D and vocational

Provide R&D tax credits to early stage, pre-revenue cleantech startups to
partnerships, primarily benefits larger companies with substantial
spur homegrown cleantech innovation.
taxable income.
Incentivize cleantech startups in the manufacturing and service-provider

Currently, fiscal incentives for cleantech startups are focused solely on
Fiscal
sectors to establish supply chain and foster the expansion of the

the demand side, with no incentives available on the supply side.
cleantech service industry.
Although EV subsidies have been implemented, they have not

resulted in a significant increase in the adoption of electric vehicles
Design the fiscal incentives to promote demand for cleantech solutions by
(EVs) in Indonesia. Additionally, the tax reduction incentives for
loosening the eligibility criteria for incentive recipients.
energy efficiency measures are currently limited to only one city in the
country.
Cleantech startups face limited funding opportunities with: • Tailor grant programs to startup development phases to help startups
survive the technological valley of death and ensure that grant awards
• Grants are primarily obtained through ceremonial events that do contribute to their growth by emphasizing intensive publication.
not support their scaling efforts.
• Catalyze private investments in cleantech startups through
Financial
• State-owned venture capital firms have not yet provided equity government guidance funds and state-owned VCs.
investment to cleantech startups.
• Build a bridge to bankability through concessional loans, venture debt,
• The newly established Energy Fund lacks clarity regarding its and loan guarantees for later-stage cleantech startups.
funding commitment and implementation.
• Local governments should financially support local cleantech
startups.

16
Executive Summary
University incubators are struggling financially, leading to poor

The government should financially support university incubators.
incubation program quality.
Despite the potential benefits they offer to the cleantech startup

Offer indirect equity investments through a public private partnership
ecosystem, public-private partnerships between the government and
Financial
scheme with private incubators and accelerators.

private incubators are rare.
Cleantech startups face challenges in innovating due to limited access

Make the Kedaireka’s Matching Fund program more accessible to startups
to government R&D funds. Moreover, there is a lack of collaboration
to facilitate greater R&D collaboration between cleantech startups and
between cleantech startups and universities in research and
universities.
development (R&D) activities.
Establishing a business, hiring foreign talent, and navigating

Simplify and streamline business-related procedures to improve the ease
the patent and SNI application processes can be complex and
of doing business.
challenging.
• Low-quality regulations and weak law enforcement in the energy • Strengthen energy policy and its enforcement to bolster the demand
sector. for cleantech startup solutions.
Non-Financial
• High minimum capital requirements for setting up VCs and • Reduce the minimum capital requirements, adopt VCC-like models to
inflexible venture fund structures. allow a more flexible investment structure.
• Provide easy access to research facilities and office space by

The limited availability of research infrastructure impedes cleantech collaborating with diverse stakeholders.
startups’ ability to innovate and develop new solutions. • Set up testbeds, living labs, and regulatory sandboxes to foster
cleantech innovation.
Poor program design (a lack of continuity and differentiation) and poor

Improve government incubation programs and consider outsourcing to
implementation (e.g. delays in timelines and cash disbursement)
experienced private incubators
hinder cleantech startups to join government incubation programs.

17
Networking and mentoring programs are available but not specifically

Networking and mentoring programs should be tailored to meet cleantech
tailored to cater to the unique needs and requirements of cleantech
startup needs
startups.
• A lack of tailored business services specifically design for

cleantech startups Establish a one-stop platform to provide comprehensive support and
• Poor information dissemination regarding government programs services for cleantech startups
and incentives
Non-Financial
Cleantech startups face challenges in the recruitment of qualified and Strengthen STEM education and vocational training programs specifically
skilled workers. focused on the cleantech industry.
The adoption of Green Public Procurement has the potential to

Mandate Green Public Procurement to drive the demand for cleantech
stimulate demand for cleantech solutions, but its implementation is
products.
currently limited and voluntary.
A lack of monitoring and evaluation system to assess the Set up a monitoring and evaluation system for all startup-related
effectiveness and impact of government programs related to startups. government programs.
A lack of engagement between key stakeholders in the cleantech Establish regular communication through public forums or regular
startup ecosystem. meetings between stakeholders in the ecosystem

18
The absence of a grand strategy to develop the cleantech startup Develop a comprehensive roadmap that encompasses all essential
ecosystem in Indonesia. aspects required to foster a conducive and thriving cleantech startup
ecosystem in Indonesia. This roadmap should outline strategies to
promote growth, development, and scaling up of the ecosystem, ensuring
its success and sustainability in the country.
At minimum, such a roadmap should include the following key elements:

• Policy and regulatory framework
• Access to funding
• Incentive packages
Non-Financial
• Research & Development (R&D) support

• Incubation and acceleration programs
• Market access, networking, and partnerships with industry and civil
society
• Capacity building, training, and education for aspiring entrepreneurs
and local workforce
• Monitoring and evaluation

19
v
Table of Contents
Foreword 3
List of abbreviations 4
Executive summary 8
Table of contents 20
Energy transition in Indonesia 21
The ecosystem of clean energy technology startups in Indonesia 28
Cleantech Startups 30
Investors 38
Incubators 43
Government 49
Fiscal incentives 52
Financial incentives 58
Non-financial incentives 64
NGOs 75
Government role in addressing challenges and gaps (Recommendations) 78
Fiscal incentives 81
Financial incentives 86
Non-financial incentives 94
References 105

20
Energy transition
in Indonesia
Energy transition gets moving, albeit slowly
Indonesia’s primary energy supply In 2022, Indonesia’s share of new renewable energy (NRE) in the primary
energy mix reached 12.3%, a modest increase from the previous year.
However, it is still far from the target of 23% set for 2025. The proportion of
in percentage (%)
NRE in the power generation mix increased slightly from 13.1% in 2017 to
POWER
100
6.66 8.6 9.19 11.27 12.16 12.3
14.11% in 2022. In the same period, the installed capacity of fossil fuel power
21.39 plants grew by 15.8 GW.
19.68 18.52 17.46 16.82 13.92
75 PR No. 112/2022, introduced during the 2022 G20 event, sets a legal
30.52 32.99 37.31 31.4
38.52 37.62 framework for the early retirement of Coal-Fired Power Plants (CFPP) prior to
their expected lifespan.
50
41.43
38.72
42.38 EV adoption has seen a significant increase, with Electric Two-Wheelers
34.97
32.75 33.4 (E2W) and Electric Four-Wheelers (E4W) growing nearly five to four times
TRANSPORTATION
25
since 2022. However, challenges such as limited charging infrastructure, high
initial costs, and restricted driving/riding range continue to hinder widespread
adoption (IESR, 2023).
0
2017 2018 2019 2020 2021 2022
Biodiesel is at the forefront of clean fuel development, with a recent blending
NRE Gas Coal Oil
ratio of 40% being tested before implementation, pending legal regulations.
Data Source: MEMR, 2021a; MEMR, 2023
Additionally, green hydrogen development is in its early stages, with a
government target of achieving 328 MW of green hydrogen production
Overview and Current Status
capacity by 2030 (IESR, 2023).
~32% Indonesia raised its climate goals in 2022 with an

INDUSTRY AND BUILDING
updated NDC, aiming to reduce carbon emissions The government has implemented stricter energy conservation criteria
by 31.89% by 2030, up from the previous target of through the GR No. 33/2023 on Energy Conservation. The annual energy
29% (MoEF, 2022). consumption thresholds for mandatory energy management have been
I N D O N E S I A’ S E N E R G Y T R A N S I T I O N
lowered from the initial 6,000 toe for all sectors to: 6,000 TOE, 500 TOE,
34% The energy sector is the second largest
4,000 TOE, 6,000 TOE for energy producers.
contributor to emissions, accounting for 34% in
2019 (BPS, 2022).
The implementation of green building certification requirements for certain
23% According to PR No. 79/2014, Indonesia aims to new buildings, mandated by GR No. 16/2021, is hindered by a shortage of
reach a 23% share of new renewable energy qualified assessors (IESR, 2022).
(NRE) in the primary energy mix by 2025, with a
further increase to 31% by 2050.
22
The net-zero plans are not aligned
Investment in the energy & mineral resources sector
with the target of limiting global

$ Billion
11.3 6.6
30 12.1 5
warming to 1.5 degrees Celsius

6.8 1.8
7.6 5.8
4
1.5 1.4 7.7
20 1.6
1.7 1.4 4.1 5
5.6
7.5 3.9 4.2
Multiple Roadmaps to Net Zero
10
• Indonesia released three reference documents in 2021 outlining its path to achieving net- 12.7 12.9 13.1 15.9 17 13.9 17.4
zero emissions by 2060 or sooner. These plans, published by the President & MoEF, Bappenas,
and PLN, have a common goal of reducing emissions. However, they are not in line with the 1.5 0
2018 2019 2020 2021 2022 2022 2023
degree decarbonization pathway and also vary in terms of technology options, generation Target Actual Target
mix targets for specific years, coal generation outlook, and the year of peak emissions. Electricity RE Mineral & Coal Oil & Gas
Source: BloombergNEF, 2022.
Data Source: MEMR, 2023. Electricity investments: Private Power Utility, Independent
Power Utility, and PLN (generation, transmission, substations, distribution). RE
Updates on RUPTL and RUED investments: Energy conservation, bioenergy, other Renewable Energy (RE) sources,
and geothermal.
• In the RUPTL 2021-2030, which is touted as a green RUPTL, the state-owned power utility PLN
has outlined plans to add 20.9 GW of renewable capacity and enhance the renewable energy
share in power generation from 15% to 23% by 2025. However, the target for 2030 is set at 24.8%, According to Avisena (2022), the energy
indicating a minimal growth of only 1.8% from 2025. subsidies and compensation for fuel, LPG,
and electricity in 2022 amounted to IDR
• According to different scenarios, the Coal-Fired Power Plants (CFPP) are projected to maintain 551.2 trillion ($36.91 billion), which was
a significant role in power generation, accounting for a share between 59% and 64% by 2030. nearly three times higher than in 2021. This increased
allocation was driven by higher coal costs, leading to
• There is an urgent need for alignment between national and sub-national climate targets. As of increased production costs for PLN and electricity costs
2023, there are only 27 out of 38 provinces in Indonesia that have developed their regional energy for residential customers. Additionally, the rising global
planning (RUED). However, 46% of them still set their RE targets below the national target of crude oil price resulted in increased domestic fuel prices
23% in 2025. (Iswara & Bima, 2022).
Investment in New & Renewable Energy

The carbon pricing mechanism in Indonesia has
• In 2019, the Ministry of Energy and Mineral Resources (MEMR) projected that up to 2025, primarily relied on voluntary carbon trading,
Indonesia would need investments of $36.95 billion in renewable energy power plants to with the implementation of carbon cap-and-tax
reach its 23% target (Pribadi, 2019). However, from 2019 to 2022, the realized investment in being postponed from April 2022 to 2025. (Muliawati,
new renewable energy (NRE) was only $6.1 billion (MEMR, 2023). 2023; Riyandanu, 2022).

23
The long history of misprojecting electricity demand has
resulted in an oversupply, leading to regulations that restrict
rooftop solar PV deployment
Fast Track Program Fast Track Program Stage II The 35,000 MW Project MEMR Reg. No. 49/2018 on rooftop
Stage I ⊳ The plan: 10.047 GW of power plants with 66% of ⊳ The plan: 35 GW with 25% of that coming from renewables solar PV*
⊳ The plan: 10 GW of that coming from renewables (MEMR, 2012). (MEMR, 2016). ⊳ Compensated export to import ratio:
CFPP (MEMR, 2012). ⊳ Project timeline: 2010 - 2014. ⊳ Project timeline: 2015 - 2019. 0.65: 1
⊳ Project timeline: 2006 ⊳ By 2014, there were 7 GW of pending and stalled ⊳ The 35 GW construction program was initially formulated based on ⊳ Time needed to obtain exim meters:
- 2011. projects, which were later added into the 35,000 the assumption of annual national economic and Java’s electricity max 15 days after the Operational
⊳ Constructed and MW project, giving a total of 42 GW (CNBC growth rates of 6.1% and around 7%-8% respectively. However, Eligibility Certificate (SLO) is received.
commissioned power Indonesia, 2018). recent data indicates that the average economic growth has been ⊳ Credit accumulation: 3 months.
plants to date: 9,927 ⊳ Constructed and commissioned power plants to 5.1% and the growth in electricity demand only reached 4.6% ⊳ Rooftop PV application processing
MW (PLN, 2021). date: 15,074 MW (PLN, 2021). between 2015 and 2019 (Kontan.co.id, 2023). time: 15 days.
⊳ Constructed and commissioned power plants to date: 28,229 MW ⊳ Eligible customers: PLN’s customers
(PLN, 2021).
2006 2010 2015 2018
2023 2022 2021 2019

Latest public hearing on the possible substantial change of MEMR Reg. PLN’s internally MEMR Reg. No. 26/2021** MEMR Reg. No. 13/2019*
No. 26/2021 as of January 2023: circulated letter** ⊳ Compensated export to import ratio: 1:1 Only consumers having
⊳ The capacity limit of up to 100% will not be reinstated. Instead, the PLN limited the capacity ⊳ Credit accumulation: 6 months. a capacity >500 kVA are
allocation of capacity will be based on a quota system per system, and it of the rooftop PV mandated to acquire SLO and
⊳ Rooftop PV application processing time: 5 days/12
will follow a first-come, first-served approach. installation to 10-15% of IO licenses.
days for the case of with/without PJBL adjustments

⊳ Electricity exports will be no longer counted as a deduction. the electricity capacity MEMR Reg. No. 16/2019*
and prohibited exports ⊳ Eligible customers: PLN and IUPLT’s customers
⊳ Capacity charges previously applied to industrial customers will be Capacity charges for industrial
to the grid due to ⊳ An app was used for submitting applications, sector reduced from 40 to 5
eliminated.
overcapacity and system reporting, and monitoring the rooftop solar PV hours and emergency energy
⊳ Existing customers will follow the new regulation after their contract expires reliability concerns. programs charge is eliminated.
(up to a max payback period of 10 years) (Humas EBTKE, 2023).
⊳ Carbon trading opportunities for rooftop solar PV
programs
*Source: IESR, 2021. **Source: IESR, 2022

24
Indonesia lacks skilled labor to support the energy transition
Government program to support Facts and figures of the general
green jobs in the energy sector and green labor force
⊳ Despite the MECRT plan in 2017 to open renewable energy majors in 100 ⊳ According to Maclean et al. (2018), only 31% of Indonesia’s 118 million labor force
vocational high schools, the major has only been implemented by 31 schools with have achieved secondary education, while 48% have not completed primary
1,193 enrolled students as of March 2020 (Development Asia, 2022). education.
⊳ Bappenas has partnered with GIZ to revamp existing renewable energy training ⊳ PISA revealed that over half of Indonesian students lack the skills required to
programs, introduce new training initiatives, and enhance institutional and compete in the labor market (World Bank et al., 2020).
regulatory frameworks between 2021 and 2024 (GIZ, 2021). ⊳ Indonesia ranked 87th out of 132 economies in the 2021 Global Innovation Index
⊳ The Swiss Government has allocated a direct grant for training in renewable and only ranked 91st in the human capital and research pillar (GII, 2021).
energy disciplines from mid-2021 to 2025 (Humas EBTKE 2021). ⊳ Indonesia faced a shortage of up to 69,000 engineers in 2018 (The Jakarta Post,
⊳ MEMR conducted online training on renewable energy in collaboration with UNDP 2019).
and Kemensetneg for three days each in 2020 and 2021 (Putri, 2020; MEMR, ⊳ According to a survey by ADB in 2018, although internationally linked companies
2021b). showed high awareness of green skills, less than 30% of respondents from various
sectors reported actively hiring or training workers for green jobs (Maclean et al.,
2018).
Job Creation Potential: The General Plan of National Electricity (RUKN) estimates that hydro, geothermal, and solar PV power generation could create
about 3.7 million direct jobs. Within the solar PV sector, around 52% of the projected 325,000 jobs would require highly skilled workers such as engineers and
management professionals (Grafakos et al., 2020).
Projection of Required Skills for Energy Transition: According to the Global Energy Index (GETI, 2022), the energy sector values engineering skills the
most, with 57% of hiring managers considering it the most desirable skill. Technical skills and behavioral adaptive skills are also highly sought after, accounting
for 37% and 22% of the votes respectively (GETI & Airswift, 2023).
Challenges: Human resources are vital for the successful implementation of the clean energy transition. However, the workforce preparedness required for the
energy transition still faces the following challenges:
• Insufficient number of graduates with formal education, as well as a lack of quality and specialization in energy transition-related skills, as indicated by the
numbers and rankings mentioned in the left box.
• Inadequate availability of both formal and informal education programs that provide green and energy-related skills.
• According to a study by ADB, limited funding is a significant challenge for Technical and Vocational Education and Training (TVET) in implementing green
skills. Although some partnerships with the private sector provided initial solutions, the lack of ongoing funding hindered their long-term sustainability
(Maclean et al., 2018).
25
Innovative and agile cleantech startups have disrupted the
global market, Indonesia has started seeing a similar trend
Prominent Role of Cleantech Startups in Global Energy Transition New Energy Nexus Indonesia’s portfolio by sector
To achieve the global goal of net-zero emissions by 2050, the deployment of cutting- Energy
edge technologies, many of which are still in the demonstration or prototype stage, efficiency
will be crucial. Furthermore, as energy technologies increasingly rely on digital and deep-
tech advancements, fast-growing startups are playing a significant role in driving innovation
and progress. Startups often bring fresh ideas and have the ability to transfer solutions to
new applications and address emerging societal challenges.
E-mobility Clean energy IoT & Energy
Tesla has been touted as the success story of a cleantech startup. Founded in 2003, Digitalization storage
the company has disrupted the transportation sector by producing high-tech electric 0 20 40 60
cars (Vance, 2015; Bloomberg, 2007). The company has dramatically increased its
annual vehicle production by 59 fold since 2013 and hit 1,313,851 vehicles sales in 2022
(Shvartsman, 2023; Gover, 2023).
Swap Energi, founded in 2019, provides
Case study of the USA: Job Creation from Cleantech Sectors battery-swapping networks for electric
motorcycles. It raised an unspecified sum
Clean energy and clean transportation jobs in the USA experienced a growth of of Pre-Series A investment in 2022 (Mosqueda, 2022). Currently,
over 5% in 2021, with more than 3.2 million Americans employed in sectors such as Swap owns 400 swap stations in the Jabodetabek area and Bali and
aims to open 1,500 stations in several big cities by the end of 2022
renewable energy, energy efficiency, storage and grid modernization, as well as clean fuels.
(Situmorang, 2022).
Among these sectors, approximately 67% of the jobs are from the energy efficiency sector
(Environmental Entrepreneurs, 2022).
Emerging Cleantech Ecosystem in Indonesia

Xurya, a rooftop solar power plant
Our database shows that there are at least 300 cleantech startups currently operating development company founded in 2018,
has successfully completed 96 projects
in the country. New Energy Nexus Indonesia alone has supported more than 85 startups
for 61 customers (Xurya, 2022) The startup offers its customers

(including non-cleantech startups) since 2019. These cleantech startups offer a range flexible payment options, such as advance payment, partial or full
of products and services that can help reduce emissions in the energy sector (power, lease arrangements with the option to purchase at guaranteed
prices (Pratama, 2021). In 2022, Xurya secured two series A
transportation, and industrial & building) and accelerate Indonesia’s energy transition.
funding rounds, raising a total of USD 33 million in investment
(Islamey, 2022).
Some notable Indonesian cleantech startups can be found in the next slide with
two of them Xurya and Swap Energi having managed to raise series A and pre-series A
funding rounds respectively, making them as the most successful cleantech startups (in
terms of fundraising) in the cleantech startup ecosystem to date.
26
The cleantech startup ecosystem in Indonesia
Power Sector
Transportation Sector


27
The ecosystem of
clean energy technology startups
in Indonesia
01. Cleantech Startups
02. Investors
03. Incubators
04. Government
05. NGOs
Cleantech Startup Spotlight
Leastric
Easy energy monitoring and management
Leastric is a startup that specializes in a cloud-based system that combines electricity management and billing system to
assist property management in reducing the time and expenses associated with managing the electricity in their properties.
Its founder and CEO, Marilyn, believes that energy efficiency and management measures are the low hanging fruit of energy
transition in Indonesia. Marilyn, however, finds that public awareness of the importance of energy efficiency is low in the country
and the regulatory framework has been either unsupportive or non-existent for the past few years, creating significant obstacles
for businesses operating in this sector. Marilyn hopes that the government improves current policy and regulations and makes
energy efficiency measures as one of the primary programs to aid the country in decarbonizing its energy system. Additionally,
Marilyn Martha Yusnita Marilyn also hopes that the government will provide financial assistance to early-stage cleantech startups, particularly for R&D
Devi Parhusip activities.
Founder and CEO
Synergy Efficiency Solutions (SES)

Driving Energy Efficiency through the ESCO Business Model
Synergy Efficiency Solutions is a startup dedicated to driving energy efficiency in Indonesia through the ESCO (Energy Service
Company) business model. Recognizing the lack of awareness regarding building energy efficiency in sectors such as hotels
and shopping malls, founder Steve Piro founded SES with the aim of addressing this issue. However, challenges such as
uncertain regulations and industry skepticism towards energy efficiency have hindered the company’s growth. Steven believes
that increasing awareness about energy efficiency is essential and calls for collective efforts from various stakeholders, not
just the government, to drive change. Additionally, Steven emphasizes the importance of government institutions setting an
example by prioritizing energy efficiency measures in their own buildings.
Steven Piro
Founder and CEO

29
01. Cleantech Startups
The cleantech startup ecosystem is
Startup Founding Year
50%
growing, tier-1 cities are home to most 40%
cleantech startups 30%

*by
September
2022
20%
• Our survey of 50 clean energy technology (cleantech) startups* reveals that the vast
majority of them (82%) were established between 2019 and 2022, with a steady rise in 10%
the number of startups launched each year. This trend is a clear indication of the expanding
cleantech startup ecosystem in Indonesia, despite the significant obstacles that many clean 0%
2012 2014 2016 2017 2018 2019 2020 2021 2022*
energy companies encounter in the energy sector. Of the 50 cleantech startups surveyed, 42 are
presently in operation, while the remaining ones have gone out of business**. Out of business Operating
• Most of our startup respondents are c-level executives (94%) with their startups being Cleantech Startup Respondents by Sector
located in Java. This trend is similar to Nikkei Asia’s study on the Indonesian startup ecosystem
which shows that most startups are located in Java (Nikkei Asia, 2021). Furthermore, around 80%
52% of startups surveyed are based in tier-1 cities (greater Jakarta area, Bandung, and Surabaya)
while the rest come from tier-2 and 3 cities***. This is as expected as tier-1 cities have better 60%
social economic (including education) and physical infrastructure conditions, making them more
40%
suitable for startup activities.
20%
• A trend is emerging where an increasing number of cleantech startups are being set up
in cities that are not classified as tier-1. Our findings indicate that the average growth rate of 0%
Power Transportation Industry and
such startups in these cities was 48% between 2017 and 2022. This suggests that there is a rising Building
interest among local talents and innovators in pursuing cleantech entrepreneurship. *A startup can have business in more than one sector
Out of business Operating
• Despite its monopolistic nature, the power sector is home to most cleantech startups
surveyed. These startups offer a range of products and services, including renewable energy, Cleantech Startup Respondents by Sector
energy storage, and renewable financing. Additionally, some startups work in the transportation
sector, providing solutions such as electric vehicles (EVs), EV batteries, and EV conversion,
while others operate in the industry and building sector by offering energy efficiency and energy
C L E A N T E C H STA RT U PS
management systems.
*We define cleantech startups as any startup that helps reduce greenhouse gas emissions in the energy sector (power, transportation,
1 13
industry & building sectors)
**Unless specified, graphs and visualization shown in this report represent 50 startups which are both still operating and out of business at
the time of writing.
***Alpha JWC defines tier-2 and 3 cities as “Cities with a growing number of middle-class consumers, developing digital and logistical Clean energy technology startups in Indonesia:
infrastructure, which show promising growth opportunities for digital development” (Alpha JWC & Kearney, 2021). How the government can help the ecosystem
31
Young and educated, cleantech startup Founder Demography
founders wish to positively contribute to 72% Founders are under 40 years old
the environment 55% Male-only founder(s)
Founders’ age distribution and motivations: A survey conducted by the Indonesia 45% At least 1 female founder
Digital Creative Industry Society (MIKTI) in 2019 on 1190 startups showed that the majority
of startup founders (86.70%) were under the age of 40 (MIKTI, 2021). Similarly, in the
cleantech ecosystem, the majority of startup founders are young entrepreneurs who believe Top 3 Motivations of Starting a Cleantech Startup
that their business ideas can seize market opportunities while contributing to environmental
protection. This focus on environmental preservation aligns with the increasing awareness
of environmental issues among young people, specifically Gen Z and Millennials at around
82% (Indikator Politik Indonesia, 2021). 1 Having interesting ideas
Founders’ gender distribution: According to our survey, although the energy sector is
typically male-dominated, 45% of the cleantech startups surveyed were established by at
2 Attractive market opportunities
least one female founder. This figure is more favorable than the general trend in Indonesian
startups, where over 90% of founders are male (MIKTI, 2018). Having gender diversity 3 Participate in protecting the environment
in leadership positions is anticipated to have a beneficial effect on a company’s financial

performance, as per McKinsey’s report in 2020.
Founders’ educational background: Founders’ Educational Backgrounds

• The majority of the cleantech startups surveyed have more than one founder on their
team. Although the founders tend to come from Science, Technology, Engineering, and 5% 7%
Others
Math (STEM) backgrounds, they recognize the importance of having co-founders with Finance
complementary skill sets in areas such as business, management, and finance. 46%
Engineering
• Our survey shows that 47.5% of the founders have obtained a bachelor’s degree as their 24%
highest level of education, while 36% have completed a master’s degree, and 9% have Business and
Management
achieved a doctoral degree. In comparison, only 1% of the founders have an associate
degree and 7.5% have a high school diploma. These findings are consistent with iPrice
Group’s study of over 50 successful startups that have secured at least series-A funding, 7% STEM
which found that approximately 35% of their founders possess a master’s degree (iprice, Science 11% Non-STEM
2017). Information
Technology

32
Runway is short, cleantech startups are struggling financially
Cleantech Startup Funding Sources Cleantech Startup Funding Stages Cleantech Startup Runway
Personal
80%
Savings
Grants 12
11
Incubators/ 60%
accelerators
9
Family/
Friends
Angel 40%
Investors
Venture
1 1 1
Capitals
20%
Bank Loans
Others
0 25 50 75 100 0%
Bootstrapping Pre-Seed Seed Pre-Series A <1 1-3 4-6 7-9 10-12 >12
month months months months months months
Out of business Operating Out of business Operating
Funding sources: Most of the cleantech startups surveyed reported that their funding mainly comes from the founders’ personal savings,
which is consistent with interviews with cleantech entrepreneurs who face difficulties in obtaining external funding and are therefore resorting to
bootstrapping. Additionally, these startups also rely on grants and funding from incubators to support their operations.
Fundraising: The majority of startups rely on fundraising to sustain and grow their business in the long term. However, our survey found that
only one cleantech startup, Swap Energy, has been able to secure pre-series A funding. The rest of the startups are either still bootstrapping or at
the pre-seed stage, indicating a struggle to secure external funding. It is worth noting that the cleantech startups that have gone out of business
also seem to have tripped over funding.
Startup runway: The majority of the cleantech startups surveyed that are still operating today have a short runway*, meaning they will run out
of cash within a short period of time. Specifically, 22 startups reported having a runway of only 1 to 6 months, while only 11 startups reported
having a runway of more than 12 months. This trend is concerning, as it is generally recommended for startups to have a minimum runway of
18 months, with 12-15 months dedicated to achieving targets and milestones, and the remaining 3-6 months dedicated to fundraising (Forbes,
2019).
*Only 35 out of 42 still-operating-cleantech startups disclosed information on runway.

33
Access to funding is a real challenge for cleantech startups
to get through valleys of death
Cleantech Startup Runway
According to our survey, approximately 64% of the 42 operating cleantech
startups are either at the concept stage (ideation/prototyping) or pilot stage 40%
(startups test their solutions on partners and customers), while none of the failed
startups made it past these stages. This trend can be attributed to the “valleys
30%
of death” theory, which suggests that clean energy technologies often face two
critical milestones in their development: the technological valley of death and
the commercialization valley of death (Breakthrough Institute, 2011). 20%
In the first valley of death, innovators and entrepreneurs often fail to find investors 10%
to fund their research aimed at developing, testing, and fine-tuning their energy
technologies, mainly due to high perceived risks and long development timelines
0%
(typically 10-15 years) associated with yet-unproven cleantech concepts. With Concept Stage Pilot Stage Post-Revenue Growth Stage
VCs usually looking for an investment exit of just 3-5 years, it is difficult to Stage
encourage VCs to invest at this stage (Breakthrough Institute, 2011). Out of business Operating
Once cleantech startups have demonstrated the viability of their concept, they
encounter another challenge of collecting a significant amount of capital to fully
commercialize their product. This stage is known as the commercialization valley The energy innovation cycle and the clean energy valleys of death
of death. Cleantech startups usually require more capital than other innovative
technologies, making it difficult for them to obtain the necessary funding to set Private equity
up large-scale commercial facilities (Breakthrough Institute, 2011). This failure Venture capital Debt financing
to secure funding means that they remain in the pilot stage without being able to
move on to the commercialization stage. Prototype/
Pilot/ Commercialization/
Maturity/
R&D proof of price
demonstration maturation
concept competition
According to the survey, only two of nine cleantech startups reported a TRL*
of 9, indicating that many cleantech startups are still in the early stages of Technological Commercialization
valley of death valley of death
technological development and hence require further research, product
development, and R&D funding.

Source: Jenkins & Mansur, 2011
*TRL is used to measure technology maturity. It is scaled from 1 to 9 with 9 being the most mature technology.

34
Some cleantech startups claim to be profitable
despite facing enormous challenges
Business Sustainability of Startups Startup Profitability
Top 3 factors affecting the sustainability of your business Generate Revenue Make a Profit
1 Access to finance
2 Energy policy
76% 26%
3 Environmental awareness
Note: the data was sourced only from startups in operation
The demand for clean energy solutions and government incentives Our survey shows that most of the cleantech startups surveyed have
have propelled the growth of the clean energy technology startup generated revenue, but only a few of them have reached profitability.
sector in the global energy industry. The increasing market for clean It should be noted that the information on revenue and profit was self-
energy technologies is expected to lead to higher revenue for these reported by the respondents, and we did not have any independent
startups, which makes them an attractive investment opportunity. means to verify its accuracy. For context, Tesla, a notable EV
However, the success and sustainability of Indonesia’s cleantech company based in the United States, only recorded its first full-year
startup ecosystem is dependent on several factors such as access profit in 2020, 17 years after its establishment as a startup (Forbes,
to finance, favorable energy policy, and environmental awareness, 2022).

as revealed by our survey. A well-designed energy policy framework
is particularly vital in stimulating the demand for innovative cleantech
startup solutions.

35
Cleantech startups lack innovation,
university-startup partnerships can help on this front
Global Innovation Index 2022 Score (Southeast Asia) Startups need to be innovative to stay competitive in the
market. However, our survey of 50 cleantech startups
Ranking: 7 57.3
indicates that only 42% of them have patents or are in the
process of applying for one. This lack of patents aligns with a
Ranking: 36 38.7 study by the Angel Investment Network (ANGIN) that suggests
Indonesian startup founders tend to copy ideas from others, leading to a
Ranking: 43 34.9 lack of innovation (Bhardwaj & Ruslim, 2018). This trend is also reflected in
Indonesia’s position in the Global Innovation Index, where it ranks 75th out
Ranking: 48 34.2
of 132 countries, trailing behind neighboring Southeast Asian countries
such as the Philippines, Vietnam, Thailand, Malaysia, and Singapore.
Ranking: 59 30.7
Ranking: 75 27.9 It is noteworthy that among the 18 startups that reported

having patents or being in the process of obtaining them,
Source: WIPO, 2022 seven have close ties with universities, either through
affiliation or collaborative research and development (R&D)
Does your startup have a patent or are applying for one? initiatives. This finding underscores the important role that
universities play in fostering innovation, particularly in the clean energy
technology sector. It also highlights the need for the government to
42% - Yes 58% - No enhance its investment in on-campus R&D activities and facilitate the
transfer of emerging technologies, including clean energy, from university
laboratories to the market.
Currently, there are no government incentives available for cleantech startups seeking to file patent applications. Startup founders,
especially those in the cleantech sector, seek government support to simplify and reduce the costs associated with the lengthy and complex
application process, which can last up to 54 months and involve fees of around $6,000 for a 20-year period. Financial incentives are desired
to make the process more affordable for small businesses.

36
Untapped potential, cleantech startups Startup Industry
Number of
employees
can be a new economic driver Tokopedia E-commerce 7,409
Bukalapak E-commerce 2,915

Economic potential of cleantech startups: The startup industry, which
Blibli E-commerce 2,768
is primarily made up of digital startups, has had a positive impact on the
Indonesian economy by creating jobs. Although there is no official data on On-demand
employment figures in the startup industry, some prominent startups have Gojek 3,132
platform
been cited to employ thousands of people. Despite some startup layoffs in recent times
due to a slowdown in the global economy and funding shortages, the future still looks SiCepat Logistics 60,000
promising for startups in Indonesia. The digital economy in the country is expected to
J&T Express Logistics 30,000
grow to $130 billion by 2025 and $220-360 billion by 2030, compared to $77 billion in
2022 (Google, Temasek, Bain & Company, 2022). Traveloka Travel 2,500
Efishery Aquatech 1,000

Job creation from cleantech startups:
Our survey found that 302 individuals, excluding founders, have been employed Kopi Kenangan Coffee chain 3,000
to date by 42 active cleantech startups. When asked about their plans for the
Source: various sources
next 12 months, the same startups reported that they intend to hire about 250
more employees, which represents an 80% year-over-year increase. The fact
that most of the survey respondents were C-level executives adds credibility
to these numbers. Job Creation by Cleantech Startups
The potential for significant employment growth in the cleantech startup

600
industry in Indonesia is similar to what has been seen in the aquatech industry,
where one startup (Efishery) has created one thousand direct jobs. With
adequate government support, the potential for employment growth in the
Total employees
cleantech industry is enormous and could be a significant contributor to the 400
Indonesian economy.
Skills for green jobs: As the job market in the cleantech industry continues 200
to grow, it requires a workforce with a different set of skills compared to the
declining fossil fuel industry. Interviews with cleantech startups have shown
that many of them struggle to find workers with the necessary skills for their 0
businesses. Therefore, the government needs to develop a strategy to prepare both new Present Next 12 Months
and existing workers for the transition to green jobs.

37
02. Investors
Indonesian startups attract investors from all over the world,
funding in early stage startups is way smaller than other segments
Total Value of Investment in Startups in ASEAN
The establishment of Bahana Artha Ventura in 1993 marked the birth of venture
capital (VC) in Indonesia (BPUI, 2014). Over the years, the number of VC firms in the $ billion
country has increased, reaching its peak in 2012 with approximately 89 VCs (Buchari et 12
al., 2016). However, this number has since decreased to 60 VCs in 2021, comprising 56 10
conventional VCs and four sharia-compliant VCs. These VCs are licensed by the Financial
Services Authority (Otoritas Jasa Keuangan - OJK) and collectively have total assets of 8
IDR 21 trillion ($1.4 billion) (OJK, 2023). 6
4
The startup scene in Indonesia started to gain traction since 2014 with the success
of startups like Gojek, Tokopedia, and Traveloka that attracted significant funding, 2
signaling the rise of digital economy in the country. This trend has continued until
0
2021, with the total investment in Indonesian startups reaching around $10.3 billion.
2000 2005 2010 2015 2020
However, due to the global economic recession and increased uncertainty, the investment
Singapore Vietnam Malaysia Cambodia
in 2022 decreased significantly to $4 billion, indicating investors become more cautious in
Indonesia Philippines Thailand Laos
their investment decisions. Nevertheless, Indonesia’s startup investment climate remains
comparatively better than other ASEAN countries, with the country consistently ranked Data Source: Dealroom
second after Singapore in terms of total investments in startups.
Investments in Indonesian Startups by Funding Round
The available data indicates that over the years, investments in Indonesian startups $ billion
have mostly gone to those in later stages of development, with funding rounds of 12
$250 million or more. One example is J&T Express, a logistics and delivery startup, 10
which raised $2.5 billion in 2021 from investors such as Tencent, SIG China, Boyu Capital,
8
Hillhouse Capital, and Sequoia Capital China. Another instance is the GoTo group, which
was created in 2021 as a result of the merger between Gojek and Tokopedia and was able 6
to secure $1.3 billion from investors prior to its IPO. 4
2
Meanwhile, investment in early stage startups (pre-seed and seed rounds) has seen
$ a decent increase from only $6.45 million in 2013 to $64.3 million in 2021, albeit 0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
much smaller than other stages. The trend continues in 2022 with early stage startups
I N V E STO RS
raising around $111 million by 2022 (Dealroom, 2022). As most cleantech startups are still
in their early stages, the investment increase in this segment is likely to have a positive
Data Source: Dealroom
impact on the overall cleantech startup ecosystem.

39
Portfolio of Selected Indonesian Venture Capital Firms
Venture Number of Portfolio in
Portfolio by industry Funding stage Ticket size
capital portfolio cleantech startups
360 (mainly
Fintech, media, marketing, food, enterprise, software, Pre-Seed, Seed, Pre-Series A, Series A, Series B,
East Venture in Japan and 1 $100K-$10M
jobs recruitment, transportation, education, telecom Series C
Indonesia)
Fintech, healthcare, logistics, agritech, e-commerce, $100K - $5M (early)

MDI Ventures 49 (Indonesia) Seed, Pre-Series A, Series A, Series B, above Series B 0
edutech, smart city $5M - $20M (growth)
Alpha JWC Pre-Seed, Seed, Pre-Series A, Series A, Series B,

55 Fintech, food, marketing, enterprise, software, travel 1* $100K-$30M
Ventures Series C
AC Ventures 47 Fintech, transport, food, enterprise, software Pre-Seed, Seed, Pre-Series A 0 $500K-$1M
Fintech, e-commerce, agritech, food & beverage, Pre-Seed, Seed, Pre-Series A, Series A, Series B and $200K-$2M (early)
BRI Ventures 18 0
logistic, biotech SaaS above, Pre-IPO, secondaries $2M-$20M (growth)
$500K-$1M (early)
MCI 21 Fintech, e-commerce, biotech, agritech Seed, Pre-Series A, Series A, Series B, above Series B 0 $2M-$20M (growth)
$25M-$30M (late)
Kejora Seed, Pre-Series A, Series A, Series B, above Series $250K-$3M (early)

10 Fintech, transport, enterprise, software, battery 1
Capital B, Pre-IPO Up to $20M (growth)
Saratoga
Investama 4 Energy, fintech, marketing Seed, Series A, Series B, Growth equity non VC 1 No information
Sedaya
I N V E STO RS
Source: Xendit & Kemenparekraf, Dealroom, MDI, BRI Ventures, MCI

*Alpha JWC has invested in PT Ilectra Motor Group (IMG) -also known as ALVA- which manufactures electric motorcycles. The company is the subholding of the coal mining company, Indika Energy, hence a spin-off startup company.

40
VCs hesitate to invest in cleantech startups,
regulatory barriers are seen as the main culprit
Investment in Indonesian Startups: The Trend Investment in Startups by Investor Location
• Investments in Indonesian startups are made by global investors, with $ billion

12
local (Indonesia-based HQ) investors* holding a small portion of the total
investment. Over the past few years, most of the investments in Indonesian 10
startups have come from Asian countries, including Singapore, China, Japan,
8
and South Korea.
6
• Indonesian VC firms tend to invest in fintech startups. Other sectors that
4
have received substantial investment from local VCs are enterprise software,
food, and transportation. 2
0
• Only a few VCs have invested in cleantech startups. Two examples of local 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
VCs investing in cleantech startups are East Ventures and Saratoga, which have
invested in Xurya, a solar power rental and installation startup during its series
A funding round. Additionally, Kejora Capital has invested in Swap Energy, an Data Source: Dealroom
e-mobility startup that develops battery swapping infrastructure. Note: Other than VCs, other types of investors that contribute to the total investment are corporate venture funds,
angel investors, impact investors, family offices, accelerators, and incubators.
*East Ventures was founded in 2009 in Indonesia and made its first investments in the country. However,
Investment Barriers Dealroom classifies it as a Japan-based VC.
• Our interviews with VCs and the Association of Indonesian Venture Capitals and Startups (AMVESINDO) show that regulatory barriers are the main factor
preventing them from investing in cleantech startups. The policy and regulatory framework currently in place is viewed as unsupportive of rapid renewable energy,
energy efficiency technology, and EV penetration in Indonesia. As a result, demand for cleantech products is relatively low, which makes it less attractive for investors
to invest in cleantech startups.
• The VCs we interviewed pointed out that the Indonesian power market’s monopolistic nature creates a major obstacle for renewable energy startups to
succeed. However, they find the EV market to be more promising as it is more receptive to new players and has a more supportive policy environment.
Nevertheless, our interviewees express their disappointment with the lack of EV incentives such as subsidies** and charging infrastructure that are essential to
increase both EV adoption and startups in Indonesia. The absence of carbon pricing is also viewed as a factor that hinders the growth of cleantech startups in the
country.
I N V E STO RS
• Investors interviewed also highlight that the limited number of founders and talented individuals involved in the cleantech sector is another challenge they
face when looking for viable cleantech ventures to invest in.
**The survey was conducted prior to recent announcement of EV subsidies
41
Likewise, impact investors shy away from clean energy
Share of Concessionary and Non-concessionary Impact investment deals in Indonesia (2013-2020)
Impact Investors
89% 11%
Non-concessionary Concessionary
66
USD 259 million USD 8 million
capital deployed capital deployed
(2013-2020) (2013-2020)
40% Impact
investors 80%
Deals in Deals in
tech-enabled tech-enabled
business model business model
Source: ANGIN, 2020 Source: ANGIN, 2020
Definition of Impact Investment Trend of Impact Investment in Indonesia

The Global Impact Investing Network (GIIN) defines impact investments as “investments The study found that most impact investors were not concessionary,
made into companies, organizations, and funds with the intention to generate social $ which means they were expecting financial returns similar to mainstream
and environmental impact alongside a financial return” (GIIN, n.d.) PROFIT investors. It was also interesting to note that many social entrepreneurs
had a misconception about impact investors, assuming that they were
Overview of Impact Investment in Indonesia concessionary and willing to accept a lower-than-market financial return.
The presence of impact investors in Indonesia has increased since 2013. Data from Impact investors were more inclined to invest in the financial services
the Angel Investment Network Indonesia (ANGIN) indicates that there were at least industry, followed by the food and agribusiness sector. On the other hand,
66 impact investors and 107 mainstream investors with impact exposure in 2020. the clean energy sector appeared to be less appealing to impact investors,
Investment ticket sizes varied from less than US$100k to more than US$5 million as it only received around 1% of total impact investment from 2013 to
I N V E STO RS
(ANGIN, 2020). The majority of impact investors, around 71%, focused on enterprises 2020. During this period, there was only one recorded impact investment
in seed to series A stages. deal in clean energy with a total investment of US$20 million.

42
03. Incubators
Clean energy has yet to become a focus area for incubators,
accelerators, and venture builders
With the rise of entrepreneurship in Indonesia in recent years, more
Selected Startup Incubators, Accelerators, and Venture
incubators, accelerators, and venture builders have been set up in
Builders in Indonesia
Indonesia. Data from Indonesian Business Incubator Association (AIBI) shows
that there are more than one hundred incubators in Indonesia with most of them
being university-affiliated. These university incubators play a critical role in taking
research and development outputs from the lab to the market. A study by ANGIN
reports that nearly all Indonesian university incubators put focus on tech startups
that are still in the ideation stage (Bhardwaj & Ruslim, 2018a).
Other than university incubators, there are also a number of private, non-
profit, and government-owned incubators, accelerators, and venture
builders that are actively supporting startups in Indonesia. Some of them
are global organizations which operate in different countries around the world. In
contrast to university incubators, many private startup assistance organizations
(SAOs)* hesitate to support startups that are still in their ideation and MVP stages Sector Supported by Incubator Respondents
due to perceived risks and trajectory unpredictability (Bhardwaj & Ruslim, 2018b). %
60
Data from ANGIN shows that although 78% of 53 SAOs they surveyed
claimed to be sector agnostic, they actually had preference for startups in
40
ICT, financial services, e-commerce or online retail, and food and beverages
sectors (Bhardwaj & Ruslim, 2018a). Meanwhile, the remaining SAOs that
had a focus sector mostly prioritized ICT, agriculture, fisheries and forestry, and 20
healthcare.
0
Our survey of 34 incubators, accelerators, and venture builders confirms
Retail and
Consumption
Agriculture
Environment
Energy
Education
Healthcare
Others
Supply Chain
Fintech
ICT
Biotechnology
ANGIN’s findings that the clean energy sector is not a priority sector for
most respondents. The top sectors of preference are retail and consumption,
agriculture, and environment. However, it’s important to note that most of our
I N CU B ATO RS
respondents are university-affiliated incubators located outside of Jakarta, * ANGIN defines startup assistance organizations (SAOs) as incubators, accelerators,
while ANGIN surveyed non-university-affiliated organizations in Jakarta. This ecosystem builders and other support organizations that facilitate and support startups,
difference in demographics could have influenced the identified focus sectors in providing a range of critical services for business growth from capacity building to access
both surveys. to mentor networks and investors.

44
University incubators are well spread in the country,
their program quality is questionable
Types of Support for Startups
Distribution of Incubators across Indonesia (Our Survey)
Monitoring/
Training
Strategy
Development
Free/Discounted
work space
Networking
Marketing and
sales support
Investor-Startup
matchmaking
Recruitment
Tax and legal

consultancy
1 8 Funding
0% 25% 50% 75% 100%
According to our survey, a variety of services are offered by incubators, accelerators, and venture builders to support startups. The top five
services offered are mentoring and training, strategy development, free coworking space, networking, and marketing and sales support. However,
funding for startup tenants is only provided by 10 out of 34 respondents, with funding amounts ranging from IDR 7 million to IDR 300 million
per startup, despite its importance. Venture capitalists (VCs) we interviewed emphasized that the support provided by these organizations is crucial in
equipping startup founders with the necessary skills, such as the ability to define good business models and financial accounting and reporting.
While university incubators are well spread throughout the archipelago, most private incubators, accelerators, and venture builders are
located in Java, specifically Jakarta. The effectiveness and quality of programs offered by university incubators, especially those outside Java, remain
uncertain as there is no established monitoring and evaluation system to assess their impact. A study conducted by ANGIN indicates a perception that
I N CU B ATO RS
government-funded incubation programs are less effective and lack the necessary commitment to provide substantial support for startups, often being
limited to project-based initiatives (Bhardwaj & Ruslim, 2018b). Given that many university incubators rely on government funding, their program quality
may also be seen as ineffective.

45
Key to developing innovation-based cleantech startups,
university incubators face financial challenges
Under the University Pre-Startup Program, university incubators are tasked by Cleantech Startup
University Incubator
the government to incubate pre-startups established on campuses. It is hoped Portfolio
that university incubation programs will stimulate the emergence of innovation-based
Bandung LPIK ITB Khaira Energy, Gelatah
startups and turn research outputs into startups (bring research from laboratory to Institute of
market). The program is essential for promoting innovation and commercializing Technology The Greater
research in Indonesia. However, the government needs to provide adequate financial (ITB) Mag Fire, BTI Energy
Hub
support to university incubators to enable them to operate effectively.
University of
DISTP UI Weston Energy
Indonesia (UI)
According to our interviews and focus group discussions with university
incubators, financial constraints are a common issue they face. They often have Inkubator
limited budgets and their proposals for more funding are frequently turned down by University of Wirausaha GEPO Energy
the government, even though the requested funds are relatively small compared to Gadjah Mada Teknik UGM
their actual needs. For instance, one university incubator shared their experience of (UGM) Creative Hub
proposing IDR 300 million to support two startups, but their request was rejected by Ailesh Power
Fisipol UGM
the government. The incubator believed that the funding was crucial for the success
Batex Indonesia,
of the two startups, and that the actual amount needed to operate the incubator Sebelas Maret
UNS Innovation Ekolektrik Konversi
was around IDR 1 billion per year, which was significantly higher than the requested University
Hub Mandiri, Angkasa Surya
amount. (UNS)
Amerta, Enerma
University incubators often have to seek additional sources of income to supplement their limited budgets, such as by providing legal management
services or collaborating with ministries or state-owned companies like Pertamina. However, these opportunities may be more accessible for
incubators from top-tier universities, leaving those from lower-tier universities at a disadvantage. This situation is seen as less than ideal because resources
that could be used to develop quality programs for (pre)startups are instead diverted to finding additional income.
On the other hand, some university incubators express frustration over the rigid rules governing government funding. Specifically, they are only
allowed to allocate the budget to core activities such as training and mentoring, while necessary expenses such as equipment and coworking spaces
are overlooked. As a result, they struggle to attract quality mentors who could support startups. This lack of financial resources has also had negative
I N CU B ATO RS
consequences for the development of startups in Indonesia, including those in the cleantech sector, and raises concerns about the government’s
commitment to commercializing new technologies developed in research labs.

46
Incubators lack experience in supporting Have You Supported Cleantech Startups?
cleantech startups, government support can

incentivize them to prioritize clean energy Yes
32.4% 11
technologies
23 No
• According to our survey, approximately 65% of incubators, accelerators, and venture builders 67.6%
surveyed did not provide support to cleantech startups. Among those who did, approximately
60% of them have incubated energy efficiency startups. Other clean energy technologies they
have supported include solar PV, wind turbines, biomass, electric vehicles, energy storage, and Sector Supported by Incubator Respondents
geothermal.
60%
• When questioned about difficulties they encountered while supporting cleantech startups,
respondents highlighted various challenges, including a shortage of in-house experts and
40%
coaches who possess knowledge of clean energy technologies and businesses, insufficient
access to production tools for cleantech startups, low demand for clean energy technologies,
and high capital expenditures. 20%
• On the other hand, respondents who have not backed cleantech startups clarified that their
lack of involvement is not due to a lack of interest but rather because they have not received 0
Retail and
Consumption
Agriculture
Environment
Energy
Education
Healthcare
Others
Supply Chain
Fintech
ICT
Biotechnology
applications from cleantech startups for their incubation programs. They also recognized their
limited expertise in clean energy technologies as a barrier to supporting such startups. Similarly,
these organizations also indicated a preference for supporting energy efficiency initiatives when
they eventually decide to support cleantech startups.
• When asked about government incentives that could encourage them to increase their support Clean Energy Technology Supported by
Incubator Respondents
for cleantech startups, the majority of respondents stated that funding was the most important
incentive they needed. They explained that this funding would not only be used to operate the 25%
incubation programs but also provide working capital for the cleantech startups they support. 20%
Additionally, some respondents expressed a preference for multi-year funding to ensure
15%
sustained support.
10%
• Other incentives that are deemed important to motivate incubators, accelerators, and venture
builders to support cleantech startups include a supportive regulatory framework for clean 5%
energy technologies, R&D funds, ease of getting business permits and Indonesian National 0%
I N CU B ATO RS
Standard (SNI), tax reduction for organizations that support clean energy, infrastructure in the
Hydropower
Energy
Efficiency
Solar PV
Wind
Turbine
Biomass
EV
Energy
Storage
Geothermal
form of laboratory and co-working space, capacity building on clean energy businesses for
incubator staffers, access to market, and public procurement of cleantech startups’ products
and services.
47
Public-private partnerships are rare despite their potential to help
the cleantech startup ecosystem
Public-private partnerships: Organizational Status of Survey Respondents
• The majority of university incubators that were surveyed have received financial aid from the
government to implement their programs, with the Ministry of Education, Culture, Research,
Private
and Technology (MECRT) being the main source of funding. However, only two out of six
incubators, accelerators, and venture builders from the private sector (including non-profit Government-
organizations) reported receiving funding from the government, indicating that collaborations owned
between these organizations and the government are rare. University-

owned
• The trend is in contrast to a recent trend in other countries where governments work 0% 20% 40% 60%
closely with the private sector in implementing startup programs. For instance, the Israeli
government funds private organizations through a competitive bidding process to manage
incubation programs for various themes, including climate tech startups (OECD, 2022). Some Have You Received Government Funding?
stakeholders interviewed believe that a public-private partnership between the government
and private entities in incubation and acceleration programs could be essential in unlocking
the cleantech startup ecosystem in Indonesia.
Yes
70.6% No
29.4%
Government funding for incubators: The survey found that in addition to the Ministry of
Funding Support from the Government
Education, Culture, Research, and Technology (MECRT), other government agencies such as the
National Research and Innovation Agency (BRIN) and the Ministry of Cooperatives and SMEs
80%
also provided funding to incubators, accelerators, and venture builders. The amount of financial
support ranged from IDR 30 million to IDR 3 billion. However, accessing government funding
was hindered by various issues such as lengthy bureaucratic procedures, complicated financial 60%
reporting requirements, and intense competition among incubators for limited government funding.
40%
Incubators’ sources of income: Our respondents have various sources of income,
aside from government funding. These sources include universities, organizational revenues,
international organizations, company sponsors, individual donors, and industry associations. 20%
I N CU B ATO RS
0%
<100 M 100-500 M 500 M - 1 B >1 B
Funding size

48
04. Role of the Government
Most cleantech startups never receive government incentives
Which government incentive has your startup received?
Percentage of cleantech startups
60%
40%
20%
0%
None Non-Financial Fiscal and Financial

50
Sumba Sustainable Solution (3S)

Solar solutions for electrifying villages on Sumba Island
3S offers technological solutions that enhance electricity access, alleviate poverty, and foster economic opportunities in rural
communities in Sumba. Their solar-powered technology is particularly beneficial for the agricultural sector, powering various
appliances such as rice mills, corn mills, coconut graters, coffee grinders, water pumps, and UV water filters. One of their
notable initiatives is the solar-powered Productive Use Centres (PUCs), which empower women in rural areas by providing
access to labor-saving equipment in their villages without requiring upfront investment. These PUCs are managed by local
agents through lease-purchase agreements, allowing users to access the equipment on a user-pays basis. Despite their
shared goal of electrification, 3S has encountered challenges with PLN Sumba, experiencing denial of hybrid electrification
Sarah Hobgen, and being forced to remove their solar-PV systems once PLN’s grid reaches the villages served by 3S. Sarah, the co-founder of
Co-Founder 3S, emphasizes the importance of a clear government plan for rural electrification that facilitates collaboration and empowers
communities to develop their own facilities to meet their energy needs.
SolarKita
Decarbonizing houses with solar power
SolarKita, established in 2018 by Amarangga Lubis (Rangga), was born out of Rangga’s disappointment with unsatisfactory
after-sales services from a solar PV vendor. SolarKita is a solar energy company that specializes in providing comprehensive
services for residential customers in Indonesia, including consultation, site survey, installation, monitoring, and maintenance.
They have developed their own integrated application to offer customer service and monitoring systems to all SolarKita clients.
Currently operating in Jakarta, Surakarta, and Bali, SolarKita has faced significant regulatory barriers, such as the exclusion
of the net-metering scheme for rooftop solar PV installations and the frequent changes in rooftop solar PV regulations in
Indonesia. Rangga hopes that the government will reinstate the net-metering scheme, which would stimulate demand for
rooftop solar PV in the residential sector and provide regulatory certainty in the industry. Amarangga Lubis,
Co-Founder and CEO

51
Fiscal Policy
Tax incentives for investors are available but restricted
Fiscal Incentives for VCs that invest in Micro, Small and Fiscal Incentives for investors that invest in certain sectors
Medium Enterprises (MSMEs) and/or regions
Income tax exemptions for VC Tax allowance

The MoF Regulation No. 48/PMK.010/2018 states that venture According to Government Regulation No. 78/2019,both
capital firms are exempted from income tax on a share of profits local and foreign investors who invest in certain sectors and/
they earn from their equity participation in micro, small, and medium-scale or regions are eligible for a tax allowance equivalent to 30%
businesses. of their investment. This incentive applies to 17 business sectors, including
micro and mini hydropower plants with investments below IDR 100 billion
Tax incentives apply for VCs that invest in MSMEs with annual ($6.7 million) and geothermal investments for exploration and drilling
net sales of no more than IDR 50 Billion ($3.5M). purposes.
The incentive mentioned can typically be used by a venture The regulation, however, does not address investments in
capital firm that holds a valid business license from the Indonesian other forms of clean energy technologies. Instead, it extends
Financial Services Authority (OJK). Additionally, the investment the same tax allowance scheme to investments in fossil fuel projects (e.g.
made must meet the following criteria: coal gasification, LNG, coalbed methane, etc.).
• The MSMEs in which the venture capital company invests must be
privately owned (i.e., not publicly traded on a stock exchange); or
• The investment period should not exceed 10 years.
Given that income tax exemptions for venture capitalists (VCs) There is currently no official definition of startups adopted by the
are contingent on the profitability of the micro, small, and medium government, hence we have compiled a list of fiscal incentives
enterprises (MSMEs) they invest in, VCs are required to wait for aimed at small and medium-sized enterprises (SMEs), which
many startups fall under.
an extended period before being able to utilize this incentive. In the event
that the startups they support fail to become profitable, VCs will not reap Despite these incentives being available for some time, our
any benefits from this scheme.
FISCAL INCENTIVES
interviews with investors suggest that many are unaware of the

incentive packages. This lack of awareness hinders investors
from capitalizing on the available benefits.

53
Cleantech startups can benefit from various tax incentives
designed for SMEs and energy companies
Fiscal Incentives for Small and Medium Enterprises (SMEs) Fiscal Incentives for imports of machines and equipment
Lower income tax rates and exemptions Income tax and Value Added Tax (VAT) exemptions
According to Government Regulation No. 55/2022: businesses According to the Minister of Finance Regulation No. 21/PMK.011/2010:
with annual revenue of no more than IDR 4.8 Billion ($310K)
Entrepreneurs who utilize renewable energy are exempted from
can enjoy a final income tax rate of 0.5%. The duration of this TAX
the collection of Article 22 Income Tax on imported machines

incentive depends on the ownership of the SME and can be used for the
and equipment, whether installed or uninstalled, excluding spare parts.
following periods:
• Individual owner: 7 years An exemption from Value Added Tax (VAT) on the
• Cooperatives, CVs, firms, village-owned enterprises/community- imports of strategically taxable goods in the form of
owned business entities, individual companies founded by 1 person: machines and equipment, whether installed or uninstalled,
4 years excluding spare parts, required by entrepreneurs in the field of
• Limited liability companies: 3 years Renewable Energy Source Utilization to produce taxable goods.
SMEs owned by individuals who earn a maximum revenue of IDR

TAX
Import duty exemptions
500M ($35K) within one tax year are not subject to income tax.
Import duty exemption is also available for various machinery,
Value Added Tax (VAT) exemptions goods, and materials used in the energy sector such as boilers
The Minister of Finance Regulation No. 197/PMK.03/2013 (Humas EBTKE, 2021) and photovoltaic modules. Specifically
states that small businesses with a revenue of less than IDR for solar PV, companies including startups can apply for 0% import duty
4.8 Billion ($310K) in one fiscal year are exempted from paying when purchasing solar modules from China due to the ASEAN-China Free
Value Added Tax (VAT). Trade Agreement (MoF, 2020).
FISCAL INCENTIVES

54
Super tax deduction is aimed at boosting R&D and vocational
partnerships, but the scheme mainly benefits larger businesses
with significant taxable income
R&D super tax deduction Vocational super tax deduction
Eligibility: Domestic business entities who carry out R&D activities Eligibility: Domestic business entities who incur costs for
after the enactment of Government Regulation No. 45/2019, aim conducting vocational activities, including apprenticeships,
to achieve a new invention, and focus on 11 focus areas including internships, and/or learning activities to foster and develop certain
energy focus (i.e. power plants, new and renewable energy, waste competency-based human resources.
to energy, batteries, electrical equipment, and Enhanced Oil
Recovery (EOR)).
Incentive: Deduction of up to 200% of vocational activity
expenses from taxable gross income with a default of 100% and a
Incentive: Deduction of up to 300% of R&D costs from taxable
maximum additional deduction of 100% for meeting certain criteria
gross income with a default of 100% and a maximum additional
e.g. having a cooperation agreement, not being in a state of fiscal
deduction of 200% for meeting criteria such as patent generation,
commercialization, etc. loss, etc.
⇛ Legal basis of super deduction: GR No. 94/2020 and GR No.45/2019 ⇛ R&D incentive: MoF Regulation No. 153 PMK.010/2020
⇛ Vocational incentive: MoF Regulation No. 128/PMK.010/2019
• The primary goal of the super tax deduction is to encourage R&D and vocational activities by offering a higher deduction on taxable income compared to the standard
rate. Cleantech startups, known for their extensive resource requirements and lengthy product development processes, can take advantage of this super deduction
to support their R&D endeavors. Additionally, the vocational super deduction encourages startups to collaborate with institutions, fostering knowledge and skill
sharing. This collaboration can enhance the talent pool available for these companies to recruit from, further supporting their growth and innovation.
• Given the current tax system in Indonesia, which includes tax exemptions for small businesses earning below IDR 500M per year and a flat 0.5% income tax rate
FISCAL INCENTIVES
for those earning between IDR 500M and IDR 4.8B annually, it is expected that only a limited number of early-stage startups will qualify for the super tax deduction
programs. Consequently, these initiatives are more likely to benefit established businesses with significant tax liability, rather than early-stage startups that require
R&D incentives the most. Furthermore, there is a notable lack of awareness as no startups have reported utilizing or being aware of these incentives.

55
EV subsidies have yet to increase EV penetration,
tax reduction for energy efficiency measures should be
expanded across the country Subsidies and Incentives for Electric Vehicles
• The recent introduction of EV subsidies in March 2023 has provided a much- ⧠ Law No. 1/2022: Starting in 2025, EVs will be exempted from vehicle tax
needed boost to cleantech startups operating in this sector. This subsidy (PKB) and title transfer fee (BBNKB)
offers a reduction in costs for both new EVs and EV conversions, making EV ⧠ MoF Reg. No. 38/2023: The government will reduce the VAT from 11%
adoption more affordable and encouraging a shift towards electric vehicles to 1% of the VAT for E4W and E-Bus that meet the minimum 40% Local
among the public. This is expected to drive increased demand for EVs, Content Requirement (LCR), and to 6% for those with LCR between 20%
expand the market, and create opportunities for innovation and growth within and 40%.
the EV industry. Furthermore, the import duty exemption for incompletely ⧠ MoI Reg. No. 6/2023: Provides a subsidy of IDR 7M for E2W conversion
knocked down battery-based electric vehicles is particularly beneficial for fee and purchase (when meeting the 40% LCR).
local EV manufacturers facing supply chain challenges. ⧠ OJK Circulation: The risk-weighted assets for financing EVs involved
in production and purchase will be reduced from 75% to 50%, and the
• However, the IDR 7M subsidies for two-wheel BEVs implemented in March payment for EV credit purchases may not require a down payment.
2023 have not significantly boosted EV sales in Indonesia. Stringent eligibility ⧠ Gov Reg. No. 74/2021: Taxes of luxury goods will not apply to Battery
criteria and limited recipient categories, such as MSMEs and lower-income EVs.
households, have been cited as reasons. The demand for EVs primarily ⧠ Ministry of Home Affair Reg. No. 1/2021: The PKB and BBNKB for
comes from individuals with higher incomes. This slow adoption may impact BEVs will only be 10% of the imposed fee calculation.
EV startups negatively. ⧠ MoF Reg. No. 138/PMK.02/2021: The cost of conducting vehicle type
tests and type test certification for BEVs is lower compared to ICEVS
• The city government of Bandung has introduced a tax reduction program in Sources: IESR, 2023; MoI, 2023; Secretariat of the Cabinet, 2023
the building sector to promote the development of green buildings, as outlined
in city government regulation No. 1023/2016. The objective of this initiative is
to lower carbon emissions, reduce energy consumption, and minimize water Incentives for Green Buildings
usage in buildings. By offering tax incentives, the program aims to stimulate
the demand for green buildings and benefit various companies, including ⧠ Government Regulation No. 16/2021 on Building: Certified green
cleantech startups operating in energy efficiency and related fields such building will receive reduction of building approval fees (PBG) service
as renewable energy. Additionally, the tax reduction scheme serves as an fees from local government.
incentive for businesses to adopt sustainable practices. It’s important to note
FISCAL INCENTIVES
⧠ Bandung’s City Gov Reg. No.1023/2016: Offering a 20% reduction in

that this tax incentive program is specific to Bandung and other cities across
the outstanding Land and Building Tax for the Rural and Urban Sector
the country should consider implementing similar approaches to foster
(PBB-P2) for one year for buildings that possess 2-star green building
growth in the energy efficiency industry.
certificates, and a 30% reduction for buildings that hold 3-star certificates
(Pratiwi, 2022).
56
The implementation of carbon pricing is largely welcome despite
lower than expected prices
Uruguay 137 Carbon Pricing
Switzerland 130
Sweden 130
๴ The Presidential Regulation No. 98/2021 regulates the implementation
United Kingdom 99 of carbon economic values through several mechanisms namely carbon
Norway 9-88 trading, result-based payments, carbon levy, and other mechanisms
European Union 87
Finland
in accordance with the development of science and technology. The
59-85
Switzerland 64 government initially planned to implement a cap-and-tax scheme* in
New Zealand 53 April 2022. However, it was first postponed to July 2022 and later to
France 49 2025. The latest delay is attributed to concerns over increasing prices of
Netherlands 46
Ireland 37-45
industrial products if such a scheme is implemented (Riyandanu, 2022).
Luxembourg 28-43
Canada
๴ Furthermore, under Law No. 7/2021 on the Harmonization of Tax
40
Iceland 19-34 Regulations, the carbon tax rate in Indonesia is set higher than or equal
Germany 33 to carbon price in the carbon market with the carbon tax being set at
California 31 minimum of IDR 30K/tCO2e ($2.01/tCO2e, $1 = IDR14,956). The rate
Denmark 22-27
Portugal 26
is much lower than the World Bank’s recommendation for developing
United Kingdom 24 countries at around $30-100/tCO2e.
Korea 19
Indonesia 2-18 ๴ While a wider carbon trading system has yet to be implemented, the
Spain 17 government has rolled out a voluntary carbon trading mechanism in the
Latvia 17 power sector. The trading system was officially launched in February
South Africa 10
China 9
2023 with 42 companies which operate 99 coal-fired power plants (33.6
Beijing 7 GW) voluntarily participating in the carbon trading system (Muliawati,
Hubei 7 2023). Under this mechanism, the government anticipates carbon
Chile 5
Colombia
prices of $2 to $18/tCO2e.
5
5 ๴ Carbon pricing can create a favorable environment for cleantech
Singapore 4
Tianjin 4
ETS startups in Indonesia by stimulating innovation and demand for low-
Tokyo 4 Carbon Tax carbon technologies. This may also increase funding opportunities for
Mexico 0.4-3.7 these startups as investors will be more inclined to invest in companies
Japan 2
that comply with carbon pricing policies. However, the relatively low
Indonesia 2
FISCAL INCENTIVES
Massachusets 1 carbon prices and voluntary participation may not be sufficient to level
Shenzhen 1 the playing field against fossil fuels that receive subsidies.
Ukraine 1
Kazakhstan 1
Poland <1 *A cap-and-tax mechanism combines the cap-and-trade mechanism and carbon
0 30 60 90 120 150 tax. Under such a scheme, entities that emit more than the “cap” are required to pay
Data source: The World Bank, 2022 carbon tax.
57
Finance
Grant prizes are available through “ceremonial” startup
competitions
Startup4Industry was initiated in 2018 by the Ministry of Energy Transition Innovation Challenge (ETIC) was a
Industry (MoI) as part of the Making Indonesia 4.0 movement. cleantech startup competition held by the Ministry of Energy
and Mineral Resources (MEMR) during the G20 presidency
The MOI runs a yearly competition for technology startups with in 2022. The competition was designed for young individuals
the aim of implementing their solutions in small to medium- under the age of 25 with the aim of encouraging youth
sized industries. participation in the energy transition.
939 startup participants 2 categories: ideation and prototyping
40 implementation projects 48 startup participants
A total of IDR 800 million ($52,000) for 20 startup 20 startup finalists
finalists and IDR 100 million ($6,500) for 5 best
startups The top three winners in the ideation category of the
competition were awarded cash prizes of $1000, $650,
Cleantech startup portfolio:
and $260 for first, second, and third place respectively.
Automa, Powerbrain, Renus, Tidar Energi, Venergio, Chakra
In the prototype category, the first, second, and third place
Giri Energi Indonesia, Macca Lab, Powerchain
winners received cash prizes of $1600, $1100, and $450
respectively.
• Our survey of 50 cleantech startups indicates that only a small number of them have received financial incentives from the government, which are
mostly in the form of grants. Two types of grants are available for startups: grant prizes and grants via calls. Grant prizes are generally easier to
access as they are often distributed through startup competitions. On the other hand, grants via calls may be more difficult to obtain due to greater
administrative requirements. Our interviews with startups also suggest that information on grants via calls may be less readily available compared to
information on grant prizes.
FINANCIAL INCENTIVES:
• Although grant prizes from startup competitions may be more easily accessible than proposal-based grants, some startup founders express their
G R A N TS V I A P R I Z E S
reservations about participating in too many competitions, as they see these events as merely “ceremonial” without clear plans from the government
to assist startups in scaling up, which can be a distraction for their team. They also have concerns about their ideas being copied by others. As a result,
founders tend to use grant prizes to help prolong the life of their cash-strapped startups. Additionally, it’s worth noting that the amount of financial
support provided through this scheme is relatively small in comparison to the funding needs of startups.

59
PLN and BRIN provide grants through incubation programs,
program implementation faces challenges
PLN Elevation was introduced in 2022 by the state-owned BRIN PPBR is an incubation program initiated by the
power company, PLN. It offers a 3-month acceleration National Research and Innovation Agency (BRIN). The
program for startups and the opportunity to pilot or test their Research-Based Startup Company (PPBR) program is
solutions in the PLN ecosystem. designed to finance startups that either use BRIN’s research
outputs or collaborate with BRIN’s researcher(s). To date,
3 focus areas: asset and resource innovation, green energy majority of startups have been incubated are from the food
ecosystem, and electric ecosystem and IT industries with no portfolio in cleantech startups.
10 startups joining the program 2-6 months of the pre-incubation stage
A total of IDR 1 billion ($67,000) for 10 startup 6-20 months of the incubation stage
finalists and IDR 450 million ($30,000) for top 3
startups
6-12 months of the post-incubation stage
A total of IDR 300 million ($19,500) per year for
Startup finalists:
maximum 2 years
Abarobotics, Amtiss, Astrobike, Automa, Bosrindo Energi,
Circa, Cityplan, Katalis, Leastric, MyECO Challenges faced by startups when participating
in the program: Long and complicated bureaucratic
Challenges faced by startups when process, challenges in finding the right partner(s)
participating in the program: Some delays both at BRIN, inflexibility in using grants (e.g. grants are
in grant disbursement for top 10 finalists and the not allowed to be used for paying salaries of C-level
implementation of pilot projects. executives or procuring equipment and machinery).
• There are several government incubation programs available to support startups, but these programs are not generally considered effective or
providing significant assistance with the government often being viewed as having a project-based mindset (Bhardwaj & Ruslim, 2018b).
G R A N TS V I A C A L LS
• Based on our interviews with startup founders, while grants are one of the reasons they take part in government incubation programs, they are more
interested in the possibility of forming partnerships with state-owned enterprises or other government entities after participating in the programs.

60
The Matching Fund aims to increase R&D collaboration between
universities and industries, required cash contributions prevent
startups from participating
About The Kedaireka Program About The Matching Fund
Institution in charge: The Ministry of Education, Culture, Research, Budget: IDR 1 trillion ($66 million) (no information on disbursement
and Technology (MECRT) realization, the number of startup and university awardees, the number
of IPs created through this program, etc.)
Program: An online platform (marketplace) used to connect
universities and industries that are interested in starting a partnership 2023 themes: green economy, blue economy, digital economy, health,
and receive the Matching Fund from the government. economic recovery and tourism
Mechanism: Entities that can access the Fund: Industry, Companies, Startups,
SOEs, Non-Governmental Organizations (NGOs/Associations), Local
๴ Industries offer business problems or business cases to be
Governments, Ministries or Government Agencies, Micro, Small and
resolved together with the academic community (can involve
Medium Enterprises (MSMEs) and Cooperatives.
university leaders, lecturers, and students).
๴ Universities offer problem solving proposals (in various forms: Challenges faced by startups when accessing the Fund:
research results, ideas, plans, products, etc.) to be used by ๴ The application process is both lengthy and laborious. In addition
industry. to the online application, the government requires applicants
๴ Universities and industries must submit their joint proposals to the to attend a full-day in-person event to pitch and negotiate their
MECRT to be considered for the Matching Fund. proposals.
Funding scheme: The Matching Fund uses a scheme where the ๴ The excessive paperwork required by the government can
government will match the fund contributed by the industry, typically a discourage lecturers from getting involved.
1:1 scheme but it can increase to a 3:1 scheme if the projects are part ๴ The funds are distributed in batches throughout the year, but all
of national or social priority programs. recipients are required to submit a final report by the end of the year.
๴ Contribution from the industry can be in a form of cash (money, raw This leaves limited time for beneficiaries who receive funds later in
materials, production materials, certification, human resources or the year to carry out substantial research and development, as all
third party services for program needs) or in-kind (other assistance activities must be completed and reported within a short period.
such as equipment, product testing/manufacturing sites, human ๴ There is a lack of information dissemination, as many cleantech
resources, services or other infrastructure owned by partners). startups are unaware of this grant program.
๴ Since early 2023, the government has required a 50% cash
contribution from the industry, which may discourage cash-
strapped startups from participating.

61
Most state-owned venture capitals invest in fintech startups with
no track record in cleantech startups yet
MDI Ventures MCI Ventures BRI Ventures
Founded: 2015, backed by Telkom Founded: 2015, backed by Bank Founded: 2019, backed by Bank BRI
`
Group Mandiri
Funds: $10 million under Sembrani
Funds: $830 million under five active Funds: $125 million (target) under two Nusantara Fund
funds active funds (including SDGs-focused
Indonesia Impact Fund) Funding stage: Early and growth
Funding stage: Pre-seed, Seed,
stage
Series A, Series B, and Series C Funding stage: Early and growth
stage Portfolio: 18 startups (1 unicorn, 1
Portfolio: 49 startups (Indonesia) IPO)
Portfolio: 21 startups (3 IPOs)
Cleantech startup portfolio: 0 Cleantech startup portfolio: 0
Sector: Fintech, healthcare, logistics, Cleantech startup portfolio: 0
Sector: Fintech, e-commerce,
agritech, e-commerce, edutech, smart Sector: Fintech, e-commerce, agritech, food & beverage, logistics,
city biotech, agritech biotech, SaaS
Source: MDI Ventures Source: MCI, Dailysocial Source: BRI Ventures, Tech in Asia
TMI BNI Ventures Analysis
The Indonesian government has provided equity

Founded: 2019, backed by Telkomsel Founded: 2022, backed by Bank BNI
investments to startups through state-owned VCs.
Funds: $40 million Funds: $34 million Data shows that the majority of these investments have
been directed towards digital startups, such as fintech
Funding stage: Seed to Series B Funding stage: Early stage startups, with no investment portfolio in cleantech
startups.
Portfolio: 12 startups
Portfolio: 0 startups Many state-owned venture capitals in Indonesia defend
Cleantech startup portfolio: 0 their investment focus on startups that align with their
Cleantech startup portfolio: 0

E Q U I TY I N V E ST M E N T
Sector: Fintech, logistics, agritech, parent companies’ main business lines. Additionally,
edutech, smart city, e-sports, some state-owned VCs claim that they are typically
healthcare Sector: sector-agnostic more risk-averse in their investments than private
venture capitals, as they are held accountable for any
Source: TMI Source: Tech in Asia, Dailysocial losses incurred to the government.

62
The Energy Fund brings hope for cleantech startups,
implementation is still questionable
Merah Putih Fund
๴ Initiator: The Ministry of State-Owned Enterprises (MSOEs)

๴ Goal: Give births of new unicorns and develop Indonesia’s digital economy
๴ Funding: The government together with the VC arms of five state-owned enterprises mentioned in the previous slide plans to secure $300 million by the
first quarter of 2023 as its first close
๴ Who can access the fund: Only accessible for growth-stage startups valued above $100 million (centaurs) in a bid to get them become unicorns (valued
above $1 billion) -also called soonicorns (soon to be unicorns). With this requirement, the fund might give no impact on most, if not all, cleantech startups
in the country as the majority of them are still in the early stages of development.
Energy Fund
๴ About the Energy Fund: In addition to the Merah Putih Fund, the MSOEs recently launched the Energy Fund together with the Health Fund and Agri Fund.
The fund is vertical-focused (sector-specific) and aimed at financing early to growth stage startups (seed to series B/C round) (Dailysocial, 2022).
๴ Goal: The ministry hopes that the fund not only fills the financial gap in the startup ecosystem but also increases synergies between SOEs and startups in
the country.
๴ Fund manager: MDI Ventures. During the BUMN Startup Day in September 2022, Pertamina New and Renewable Energy (NRE) and MDI Ventures
signed a head of agreement (HoA) regarding the initiation of investment cooperation in the form of the Energy Fund. It is reported that Pertamina NRE will
allocate $500 million to the Fund.
๴ Focus areas: Low carbon solutions, new and renewable energy, and other future businesses in the energy sector (Pertamina, 2022).
๴ More details are needed: While the Energy Fund is applauded by many, there are still uncertainties surrounding the implementation of the fund. There is
no clear information yet on when the fund will begin to be disbursed, the ticket size, and other details. Additionally, there are reports that the appointment of
MDI Ventures as the Energy Fund manager is not yet final, and other state-owned VCs may still be considered as candidates.

63
Non-financial incentives
Starting a new business can be complicated
Indonesia’s rank on The World Rank on Resolving Insolvency
Rank on Starting a Business
73 Bank’s Ease of Doing Business
2020* (out of 190 countries)
140 indicator. 11 procedures and 13 days
to start a business
38 indicator. 65.5 of recovery rate (cents
on the dollar recovered by creditors)
and 1.1 years to resolve insolvency
Business License and Limited Liability Company (LLC) Insolvency
Regulation: GR No. 5/2021 on the implementation of risk-based business licensing,

Law No. 40/2007 on LLC, and Government Regulation in Lieu of Law No.2/22 on Job Regulation: Law No. 37 of 2004 on Bankruptcy and Suspension
Creation. of Payment Obligations (SPO).
๴ The government has introduced an Online Single Submission (OSS) platform ๴ The Bankruptcy Law encompasses two types of legal actions:
managed by the Ministry of Investment that integrates business licensing SPO and bankruptcy. Under SPO, debtors can propose a
processes. settlement plan for debt restructuring. During bankruptcy
proceedings, the debtor’s assets are confiscated and
๴ Business licenses are categorized according to risk level (low, medium-low,
managed by a Curator under the oversight of a Supervisory
medium-high, and high) with each category having specific requirements for
Judge.
obtaining a license.
๴ To declare a debtor as an entity undergoing an SPO or
๴ The minimum authorized capital requirement for establishing an LLC has been
bankruptcy, the Commercial Court reviews a petition filed by
eliminated (previously IDR 50M), making it easier and more flexible to establish
the debtor or by one or more creditors if the debtor (i) has at
one.
least two creditors, (ii) does not fully repay at least one debt
๴ For SMEs with capital less than IDR 5B, the founder can establish an individual that is due and payable.
LLC with an establishment fee of only $3.4 and registration can be completed
Source: Sunartoputra et al., nd.
electronically without a notarial deed.
• The potential for entrepreneurship to thrive is higher in countries that have a streamlined and efficient process for initiating a business. Regrettably, Indonesia ranked 73th out of 190
countries in the World Bank’s 2020 report on the ease of doing business. Specifically in the category of starting a business, the process of establishing a business in Indonesia is
lengthier and more complex compared to OECD countries, requiring 13 days to complete 11 procedures, whereas OECD countries typically require 4.9 procedures and 9.2 days (The
World Bank, 2020).
• The government has taken steps to improve this situation by introducing the Online Single Submission (OSS) platform which aims to streamline and simplify the business licensing
N O N -F I N A N C I A L I N C E N T I V E S :
and permit process in Indonesia. Although the platform has contributed to reducing corruption and simplifying the process, some founders have reported challenges in navigating the
E A S E O F D O I N G B US I N E SS
platform and deciding on the risk level of their company. They have also expressed concerns about the reliability of assistance provided through the platform, citing delays in receiving
responses from officers and short response times for users before cases are closed.
• A well-designed insolvency policy provides a safety net for entrepreneurs, enabling them to take calculated risks without the fear of lifelong financial consequences. It allows
entrepreneurs to experiment, learn from their failures, and iterate their ideas, fostering a culture of innovation. Indonesia ranked 38 on resolving insolvency indicator with a recovery
rate of 65.1 which was comparable to OECD countries at 70.2 and a recovery period of 1.1 years, relatively shorter than OECD countries at 1.7 years.
*The study covers 10 indicators including the ease of doing business and resolving insolvency
65
Unsupportive regulations become barriers to the growth of
cleantech startups
The Power Sector
Regulations: Barriers:
• The Presidential Regulation (PR) • Reg. 112, which utilizes price-ceiling and B2B negotiation schemes for renewable energy projects instead of Feed-in-
No. 112/2022 on the Acceleration Tariff, brings hope for renewable energy developers. However, 75% of developers surveyed by IESR believe that the
of Renewable Energy regulation will not accelerate the development of renewables, as its effectiveness will largely depend on how PLN carries
Development for Electricity out the procurement processes (IESR, 2022).
Supply • Regulation 26 allows rooftop solar PV installation up to 100% of the installed power meter, but PLN imposes restrictions
• MEMR Reg. 26/2021 on Solar on capacity (10-15%) and net metering. Startups find PLN’s rules make rooftop solar PV economically unattractive,
Rooftop PV particularly for residential consumers. Additionally, they often face complicated permit processes to install rooftop solar
PV.
The Transportation Sector
Regulation: Barrier:
• Regulation of the Minister • The current subsidies of IDR 7M for two-wheel BEVs, implemented since March 2023, have not resulted in a significant
of Industry No. 6/2023 on increase in EV sales in Indonesia. According to one electric two-wheeler manufacturer, this can be attributed to the
Guidelines for Providing stringent eligibility criteria and requirements for subsidy recipients (Adli R., 2023). Currently, the subsidies are limited to
Government Assistance for MSMEs and subsidized electricity users (450-900VA) with lower income levels, while the manufacturer states that the
the Purchase of Two-Wheel actual demand comes from individuals with higher incomes. The sluggish demand for EVs would hinder the pace of EV
Battery-Based Electric Motorized adoption, which could have a detrimental impact on startups operating in the sector.
Vehicles.
The Industry and Building Sector
Regulations: Barriers:
• Government Regulation No. • The much-awaited revision of GR No. 70/2009, GR No. 33, introduces more stringent criteria by reducing annual energy
33/2023 on Energy Conservation consumption thresholds for mandatory energy management across sectors: 500 TOE, 4000 TOE, 6000 TOE for energy
producers. The new regulation also allows national and sub-national governments to offer fiscal and non-fiscal incentives
• Government Regulation
to entities implementing energy management and impose disincentives on those who do not comply. However, specific
R E G U L ATO R Y S U P P O RT
No.16/2021 on Buildings
(including green buildings) details on the fiscal incentives and overall enforcement of the regulation remain unclear.
• While GR 16 shows promising progress in promoting energy efficiency and increasing the market for cleantech
startup solutions, its current implementation is restricted to pilot projects due to a shortage of certified assessors. Full
enforcement of the regulation is anticipated to commence in 2026 (IESR, 2022).

66
The minimum capital requirement and the venture fund
structure create inflexibility for venture capitals
Challenges in setting up a venture capital firm: The Financial Services Authority (OJK) Venture Fund Structure in Indonesia
in Indonesia, under OJK Regulation No. 34/POJK.05/2015 of 2015 on Licensing and Organization
of Venture Capital Company (OJK Regulation 34), has imposed a challenging IDR 50 billion LIMITED PARTNER
minimum capital requirement for venture capital companies (VCs), causing difficulties for many to AGREEMENT (LPA)
start their roots in Indonesia compared to other countries. Only half of the 61 registered VCs meet LP/INVESTORS
this requirement, hindering investment in the country’s early stage startup ecosystem.
The required capital for VCs in Indonesia is considered too high compared to neighboring countries INVESTMENT MANAGEMENT AGREEMENT
with some demanding as little as IDR 10 billion or even IDR 1 billion to obtain permits for VCs
(Thomas, 2021). This has led foreign VCs to avoid opening full-fledged (instead of representative) FUND CUSTODIAN/
THE FUND
offices in Indonesia and instead ask their investors to follow them to their headquarters’ jurisdictions, MANAGER/PMV FUND SERVICES
with some start-up founders opting to establish holding companies in Singapore to get larger access
to funding. The high minimum capital requirement is one of the regulatory problems discouraging
investors from further involvement in Indonesia.
Fundraising: Numerous VCs based in Indonesia prefer to raise funds through venture capital PORTOFOLIO COMPANIES
licenses in other countries like Singapore, Cayman, or the British Virgin Islands. This choice is
influenced by factors such as the more dynamic structures, simpler and more affordable tax rates,
and greater regulatory certainty in those jurisdictions (Khaidir, 2023). Source: Khaidir, 2023
Venture fund structure: VCs presently function under a collective investment contract (KIK) permit, despite the absence of a dedicated legal framework. An
alternative approach could involve adopting the joint investment contract (KIB) scheme, governed by the Capital Market Law. However, this option poses challenges as
it necessitates collaboration with a custodian bank. Furthermore, the KIB structure restricts each venture fund to a single investment thesis, which may lead to higher
costs and inefficiencies when compared to models like Singapore’s Variable Capital Company (VCC) (Khaidir, 2023).
Taxation: VCs in Indonesia have concerns about potential double taxation, mainly due to their investment practices using a segregated portfolio company (SPC). Tax
officials treat the VCs and SPC as separate entities, despite their shared source of income. As a result, VCs may face taxation at both levels, leading to double taxation.
For foreign VCs, the situation can be even more problematic as they may encounter triple taxation, with the Indonesian government collecting taxes each time they
repatriate capital gains back to their home countries (Thomas, 2021).

67
Research infrastructure is limited, Research Infrastructure of the National Research & Innovation
Agency (BRIN)
cleantech startups face enormous As of May 2023, BRIN consists of 12 research organizations with 85
challenges in innovation research centers and 141 laboratories. Some laboratories have been
directly appointed by ministries or agencies for specific testing purposes.
For instance, the Thermodynamic, Motors, and Propulsion lab was
• Research infrastructure plays a crucial role in supporting the research and
appointed by the MoT for emission testing. BRIN provides public
development (R&D) process of clean technologies, which can last for a decade or
access to its equipment and machinery through the E-Science
more. This infrastructure is instrumental in preventing cleantech startups from facing
Services (ELSA) website. Individuals can submit requests to utilize
the “technological valley of death”. Our survey and interviews revealed that some
the equipment and machinery for R&D purposes. Source: BRIN, 2022a;
cleantech startups originated from universities where founders took advantage of
BRIN, 2022b
the research infrastructure offered by universities during the initial stages of product
development, prior to establishing themselves as independent spin-off startups.
Science Techno Parks (STPs)
• Other than universities, cleantech startups also have access to research
infrastructure owned by BRIN. However, cleantech startups have raised concerns In 2019, there were only 22 STPs, which fell short of the targeted 100
about the lack of state-of-the-art equipment and machinery at BRIN facilities STPs set in RPJMN 2015-2019. These STPs are typically situated
and high rental prices of these facilities, particularly for cash-strapped startups. within university campuses or research institutes. Their primary purpose
Additionally, while the ELSA portal helps ease the permit process, the portal is hard is to establish a connection between higher education research and
to navigate with users finding difficulty in finding out equipment and machinery the industry. Within an STP, research conducted on campus is
available at certain national laboratories. further developed and transformed into technology-based startup
companies (spin-off companies). STPs typically house research
• The government’s establishment of STPs is a commendable initiative to support centers equipped with laboratories, workshops, and office spaces.
research commercialization and provide research infrastructure in cities across Source: Antaranews, 2019; ITS, n.d.
Indonesia. One startup interviewed shared their experience in utilizing the STP with
them benefiting from lower rental tariffs compared to commercial workshops. The
full potential of these technoparks has yet to realize as currently, only few cleantech Office Spaces
startups have emerged from STPs.
• In our interviews with cleantech startups, we found that physical office spaces are
not always essential for them as they typically work from anywhere. What they
prioritize more is having a designated office address for administrative business
purposes.
• Indonesia’s allocation of R&D funding falls significantly below the global average,
I N F R A ST R U CT U R E
indicating a lower priority for R&D at the national level. In 2020, Indonesia dedicated From left to right: SAM Space (Co-Working Space owned by the city
only 0.28% of its GDP to R&D, which is ten times lower than the global average government of Malang), Jakarta Creative Hub (owned by the city
of 2.63% (The World Bank, n.d.). The low level of R&D expenditure proves to be government of Jakarta), Indigo Space (owned by state-owned Indigo
limiting the establishment and improvement of research infrastructure, discouraging accelerator)
innovation and the growth of research-driven companies in the country.
68
Poor program design hinders cleantech startups to join
government incubation programs
Digital Creative Business Incubator Solo Technopark
Established in late 2010, this incubation program was created to support local startups
in Semarang and neighboring cities in Central Java. The incubator operates under the Established in 2009 by the Surakarta city government,
guidance of four Ministries and Agencies and collaborates with: this technopark provides training and incubation
programs for local startups and SMEs.
20+ Local governments 10+ Industries 8+ High and Vocational Schools
Solocorn: A training program to prepare local
Targeted industries: Software/apps, multimedia, graphic design, games, and talent to become hustlers (business), hackers
computer networks (programming), and hipsters (UI/UX design)
needed by digital startups. It also supports the
establishment of digital startups in the angel
Koridor round or speed round phase.
Founded in 2017, the city government of Surabaya initiated the Koridor program to provide
Smeska: A non-digital startup training
incubation and acceleration programs to Surabaya-based startups that have participated in
program designed to equip teams with the
the 1001 Startup Digital program.
skills necessary to manage the entire end-
Support: Facilitates startups in establishing connections with key stakeholders to-end processes of their business. This
(e.g. potential investors and government entities) and provides personalized includes areas such as production, branding,
mentoring to cater to the specific needs of the startups being incubated. marketing, digitalization, and packaging.
12 startups incubated, 0 Cleantech startup portfolio
Persistent challenges
Information asymmetry Startups claim to find difficulties in finding detailed information on government incubation programs.
Poor program design The absence of a well-defined succession plan in local government incubation programs poses a hurdle for startups at different growth
I N CU B AT I O N P R O G R A M S
stages, including cleantech startups, discouraging their participation. The Koridor program stands out as the sole initiative addressing
this issue by mandating completion of the 1001 Startup Digital program as a prerequisite.
Note: Challenges in the incubation programs initiated by the central government can be found in chapter of financial support

69
Networking and mentoring programs are available but not
tailored to meet the needs of cleantech startups
Startup4Industry by the MoI BUMN Startup Day by the MoSOEs Next Indonesia Unicorn (NEXICORN) by the MoCI
Startup4industry envisions facilitating A two-day event was held on 27- NEXICORN is an event that aims to
and promoting technological 28 September 2022 in Jakarta to facilitate matchmaking between startups
transformations in the industry by leveraging connect startups with Indonesia’s and investors, aiming to provide funding
solutions provided by Indonesian tech State-Owned Enterprises. The event opportunities and boost the number of Indonesian
startups. consisted of several components, including unicorns. The program brings foreign investors to
startup exhibition, rapid mentoring, Indonesia and takes Indonesian startups to overseas
Startup4industry is a hub connecting
conference, business matching, and events to connect with venture capitalists. Startups go
industries and startups, offering access to
an opportunity for startups to pitch to through a curation process to evaluate their business plan,
manufacturing, financing, local contributors,
potential investors. market validation, and technology sustainability before
industrial problem database, expertise, market
meeting with investors.
insights, technology competitions, and global The event featured 150+ exhibitors,
expansion. 250+ startups, and 22 State-Owned The NXC International Summit 2022 aimed to
Enterprises. Participating investors assist founders who were seeking funding for
From 2018 to 2022, a total of 939
included Mandiri Capital, BNI Ventures, Series A and beyond, or those who were raising
startups participated in the program with
BRI Ventures, MDI Ventures, Telkom Mitra over $1 million in funding.
alumni of this program joining STARFINDO
Inovasi, and Indigo (all are state-owned).
(Indonesian Startup For Industry Association).
Room for improvement Business Incubation Bootcamp by the MCSME
In 2022, MCSMEs conducted 3-day capacity building events in 7 cities. These

Generic advice and Cleantech startups have unique challenges
events featured experts and practitioners from various fields who provided
lack of customization that these programs often fail to address.
insights on topics such as business mindset, startup fundamentals, product
N E T WO R K I N G A N D M E N TO R I N G
Lack of continuity Some of these programs are one time testing and validation, financial performance evaluation, business legality, standardization
event, lacking a long term commitment to and intellectual property as well as preparation and export facilities (for non-digital startups).
supporting startups. The bootcamp is designed for aspiring entrepreneurs and startups, with a focus
on testing market acceptance of their developed products (Product Market Fit).
Lack of evaluation No mechanisms in place to evaluate program
The program aims to generate 100 new startups in technology, environmentally-
and feedback effectiveness and get feedback from friendly businesses, export-oriented or import-substituting ventures, and creative
participants. industries.

70
A lack of tailored business services* specifically design for
cleantech startups
In Indonesia, KADIN handles various business and legal Programs by the Indo
nesian Chamber of
services which are available for its members. Cleantech startups Commerce & Industry
(KADIN)
that become members of KADIN can also benefit from these
The Business Service
services. However, our interviews indicate that none of the Desk operates as the
unit of KADIN, actin international
KADIN-member cleantech startups have utilized these defined g as a bridge betwee
and foreign businesse n Indonesian
business services. s, facilitating trade an
opportunities. d investment
• Services offered inc
• The absence of support for market expansion abroad: The lude business match
research, company ba ing, market
business service desk of KADIN has primarily concentrated ckground checks, lead
(business promotion & generation
on facilitating foreign investment into the Indonesian market, members engagement
and in-market represen events),
but there is a lack of adequate support for local businesses tation
seeking to expand abroad. This support is essential, as • To date, the De
sk has organized 25
dialogues, arranged 0+ business
our survey reveals that 60% of startups have intentions 10,000+ business m
meetings, and esta atching
to expand internationally and an additional 30% are blished partnerships
countries with 15+
considering it. Currently, there are no services available to
assist them in navigating foreign regulations and customs Legal Consultant uti
lizes a technology-bas
requirements necessary for successful market expansion. platform (reg-tech) to ed regulatory
democratize legal acce
comprehensive legal ss, providing
knowledge through
categorized regulation
• The need for marketing service: Our surveys and interviews s, court decisions,
analysis, and user-frien
highlight that cleantech startups require specialized business dly articles.
services to support their marketing efforts and expand their
reach to a wider target market. This is particularly important
as the products and services offered by these startups may *We define business services as tangible services aimed at assisting
be unfamiliar to the general public. The government can startup needs. These services include providing public accountants
to assist with financial matters, offering legal and tax advisory
B US I N E SS S E R V I C E S
play a significant role in addressing this need by providing

dedicated business services tailored to the requirements support, and facilitating connections between startups and potential
export clients abroad, among others.
of cleantech startups, thereby enabling them to effectively
promote their offerings and enhance market penetration.

71
Improvements are needed to streamline the application
processes for patents, SNI, and the recruitment of foreign talent
Patent Foreign Talent
Regulation: Law No. 13/2016 on patent Regulation: MOM Reg. No. 08/2021 on foreign workers.
Application procedure: Register an account on paten.dgip. Requirements: obtaining approval for the Plan for Using the Foreign Workers (RPTKA),
go.id, make a new application, upload data, fill out all available paying a monthly compensation fund of $100/foreign worker, registering workers in the
forms, make payments. Indonesian insurance program, and sharing foreign workers’ skills & technology with
Application can be made online or manually. There are Indonesian employees, conducting training for local workers.
differences in the application prices and annual patent service Incentive for startups: Technology-based startups can be exempted from RPTKA
fees for the SME and general categories (DJKI, n.d.). Cost for three months. After that, the startup is required to apply for and obtain the RPTKA
reduction for companies classified as SMEs, including startups approval (InCorp, 2023).
is available. Challenges: Employing foreigners is often seen as unattractive due to high cost
Challenges: A startup shared their challenges in obtaining a barriers. Apart from the higher salary expenses, the complex administrative procedures,
reference letter from the local Department of Cooperatives and extensive reporting requirements, and the need to obtain various licenses for entry,
SMEs required to apply for cost reduction, which involved a stay, and work in Indonesia add to the overall complexity (Iswara, M.A., 2020). This
lengthy wait and dealing with multiple officers. They also condition poses a potential barrier to the development of state-of-the-art cleantech in
experienced delays and a lack of updates on their IP application the country, as it may limit the access to foreign talent and expertise that can contribute
process even after a year of applying. to technological advancements in the cleantech sector.
Indonesian National Standard (SNI)
Regulation: GR No.102/2000 on Indonesian National Standard.

In general, the procedures for obtaining SNI include: filling out application forms, verifying the applications, auditing producer quality management systems,
testing and evaluating product samples, making certification decisions, and granting SNI.
Estimated cost of obtaining SNI: Around $679 - 2.7K and free of charge for low-risk SMEs (e.g. SMEs in the food and retail sectors) (Portal Informasi Indonesia,
2019; Liputan6, 2023).
PAT E N TS , S N I , FO R E I G N TA L E N T
Challenges: One of our startups faced challenges when attempting to import solar lamps from Africa for use in remote villages in eastern Indonesia. As the
lamps did not have an SNI certificate, the government required the startup to obtain certification by inviting a government-assigned surveyor to audit the lamp
manufacturer in Africa. Unfortunately, the cost of this certification process amounted to $25,000, which the startup was unable to afford. As a result, the startup had
to return the lamps to Africa. This highlights the financial burden and difficulties associated with obtaining necessary certifications for imported products, which
can hinder the development and implementation of innovative solutions, such as clean energy technologies, in Indonesia.

72
The Government has made efforts to integrate entrepreneurial
education into curriculum, STEM education needs to be strengthened
Facts and figures about entrepreneurial education:
• To support the growth of cleantech startups, it is
Entrepreneurial education in Indonesian higher education is unevenly distributed, imperative for the government to prioritize the expansion
primarily concentrated in Java. The previous education system has failed to adequately of the highly skilled workforce required for the cleantech
prepare graduates for entrepreneurship, leading to the perception that it is less stable and industry, including engineers, technicians, and scientists.
promising than other career paths (Amalia & Korflesch, 2021). As of 2021, Indonesia had only 2600 engineers per 1
million population, which is lower compared to Vietnam
As of 2022, the entrepreneurship ratio in Indonesia is 3.47% of the total population, with with 9000 engineers per 1 million population and South
a government target of reaching 3.95% by 2024. However, this figure remains lower Korea with 25000 engineers per 1 million population
compared to Singapore (8.76%), Thailand (4.26%), and Malaysia (4.74%) (Sutrisno, 2022). (Saptowalyono, 2021). Although the number of
vocational schools offering renewable energy programs
has increased from one school in 2019 to 15 schools
in 2021 (Saryadi, 2022), our interviews with startup
Merdeka Belajar Kampus Merdeka (MBKM)’s University Curriculum founders indicate that they still face challenges in hiring
This curriculum provides university students with direct workforce skilled technicians who possess a deep understanding
involvement to develop their skills based on their talents and interests. of clean energy technologies. This is especially evident
Below are some entrepreneurial education-related programs: in the EV industry.
• Cleantech startups are heavily reliant on cutting-edge

Kedaireka: A platform to matchmake Digital Startup: Elective subject which has research and technological advancements. However,
universities and industries (including been introduced in collaboration with the there is often a gap between academic research and its
startups) to synergize and collaborate in MoCI and the movement of 1000 national practical application in the market. A 2020 study revealed
creating innovation. startups since 2022. that the vast majority of research projects conducted at
universities or research institutions in Indonesia had
low levels of both Innovation Readiness Level (IRL) and
Independent Study: Certified deep dive Technology Readiness (TRL) (Huda et al., 2020). While
Wirausaha Merdeka: A full-time program courses on applied sciences taught by some cleantech startups interviewed originated from
lasting one semester that allows students experts. One of its sub-program is Startup universities, they believed that the government should
to gain entrepreneurial experience outside Campus, a 4-month training program intensify efforts to commercialize research on clean
E D U C AT I O N
the classroom. designed to prepare aspiring startup energy technologies.

founders.

73
Green Public Procurement potentially increases demand for cleantech solutions,
but the implementation remains limited and voluntary
On Green Public Procurement
• The public procurement process in Indonesia is governed by Presidential Institution in Charge:
Regulation No. 16/2018, which can be accessed through the website of National Procurement Board (LKPP)
the National Procurement Board (LKPP). While the regulation touches
upon Green Public Procurement (GPP) by emphasizing the importance of Procurement mechanism:
considering environmental, social, and economic aspects, it does not provide Tendering and purchasing, depending on the value of money
detailed guidelines specifically for GPP. The environmental aspect mentioned
Related websites and system:
in Article 68 focuses on reducing harm to health, air, soil, and water quality, as
well as using natural resources responsibly. ๴ Electronic Procurement System: Facilitates public participation
๴ General Procurement Plan Information System: Displays
• MoEF Regulation No. 5/2019 provides a more detailed definition of Green government procurement plan
Public Procurement (GPP) in Indonesia. It emphasizes the prioritization of
Regulatory framework:
eco-friendly goods and services that focus on the preservation, protection,
and management of the environment in government procurement. However, ๴ Presidential Regulation No. 16/2018 on the government
it is worth noting that currently, there are only six goods and services that have procurement of goods/services
been legally classified as eco-friendly under this regulation. These include ๴ Minister of Environment and Forestry (MoEF) Regulation No.
paper, plastic, wood, autoclave hybrid medical waste treatment equipment, 5/2019 on the procedures for applying environmentally friendly
microwave hybrid medical waste processing equipment, and air conditioners. labels for the procurement of environmentally friendly goods and
services
• The limited availability of goods and services labeled as eco-friendly hampers
Katalog Elektronik (E-Catalog):
the broader implementation of Green Public Procurement (GPP), thus limiting Official purchasing platform developed by LKPP
the participation of cleantech startups. Unlike mandatory procurement policies
for domestic and SME products, GPP remains voluntary, which hinders the
expansion of green industries and government support for environmentally
G R E E N P U B L I C P R O CU R E M E N E T
friendly products and services.
• Our interview with LKPP reveals that government officials have limited
awareness of the importance of GPP, and there is a perception that green
products are costlier. This leads to caution in procuring green products/
services to avoid scrutiny during audits.

74
05. Role of NGOs
Half of cleantech startups had no prior interaction with NGOs
despite recognizing the importance of collaboration
What the survey tells us? The role of NGOs according to cleantech startups surveyed
• Our survey shows that cleantech startups acknowledge NGOs as an important actor in the
cleantech startup ecosystem. These startups believe that NGOs can play a crucial role in raising
public awareness about climate change issues by conducting campaigns and other related
activities. By increasing public awareness, the demand for clean energy technologies is likely to
rise, potentially creating a new market for cleantech startups.
• Startups expressed interest in collaborating with NGOs, particularly in energy access projects
for remote areas, where NGOs provide funding to cleantech startups for energy development
in these areas. NGOs can also assist startups with market analysis, promote clean energy
technologies, connect cleantech startups with relevant stakeholders, and advocate for policy Interaction between startups and NGOs
changes to accelerate the energy transition and foster clean energy entrepreneurship in
49%
Indonesia. startups have never
interacted with any
• The identified roles that NGOs can play in supporting cleantech startups are aligned with the NGO
top three factors that startups pointed out in our survey as crucial for the sustainability of the
cleantech sector: access to funding, supportive policies and regulations in the energy sector,
and public awareness of environmental issues. Given the multifaceted nature of the energy
NGOs that startups have interacted with
transition, relying solely on technical solutions is inadequate and community mobilization is
necessary to increase public participation and awareness. NGOs can play a significant role in
this effort.
• Half of the startups surveyed have not interacted with NGOs. Those who did mostly named
New Energy Nexus Indonesia, GIZ, UK Pact, Hivos, and IESR. Some startups mistook GIZ and
UK Pact as NGOs instead of governmental programs. Given only few NGOs have exposure to
NGOs
cleantech startups, more engagement should be initiated in the future.

76
Local environmental NGOs should put more attention to cleantech
startups to help the ecosystem and accelerate the energy transition
Environmental NGOs in Indonesia have been actively addressing climate-related concerns such as climate Focus areas of environmental
change, energy transition, and coal phase-out. These organizations have been instrumental in advocating NGOs in Indonesia
for more ambitious climate targets from the government and raising public awareness about environmental
issues.
Climate Change
Although local NGOs in Indonesia have offered some support to cleantech startups such as promoting them on
Renewable Energy
social media and conducting related studies, there has not been an NGO in the country that has concentrated
on supporting clean energy technology startups. This lack of attention from the NGO community is noteworthy Energy Efficiency
given the potential of cleantech startups to disrupt the energy sector and accelerate the transition to clean
energy.
Energy Access
According to our focus group with 9 environmental NGOs, they are interested in supporting cleantech startups
and recognize the potential of using clean energy entrepreneurship to engage young people. NGOs can work
Coal Phase-out
with startups on energy projects by employing them to implement their programs while allowing startups to test
their technologies and gain market traction. However, the main challenge is to connect NGOs and cleantech Low Carbon Transport
startups for collaboration on clean energy projects.
Green Jobs
NGOs have the potential to provide valuable assistance to cleantech startups by facilitating access to
funding through connections with donors and financiers. Furthermore, they can help startups navigate the
Green Economy
complex policy and regulatory framework, as well as advocate for policy changes that promote cleantech
entrepreneurship in Indonesia. By working closely with NGOs, cleantech startups can benefit from their
NGOs
expertise and networks and ultimately accelerate the transition to a more sustainable energy sector. Carbon Pricing

77
Government role in addressing
challenges and gaps
(Recommendations)
How the government can help cleantech startups
according to our survey
What fiscal and financial incentives do you expect from the Non-financial incentives cleantech startups
Government to Support? expect from the government
Supportive Regulation
R&D Funds
Networking
Grants Funds
Soft Loan
Research Infrastructure
Tax Incentives Collaboration
Equity Financing Streamlined Permit Process
Credit Guarantee
Others
0% 20% 40% 60% 80%

79
Automa Supply Chain

Greening the supply chain
Eumir and his partners founded Automa in 2019 to capture business opportunities in the supply chain sector where most
logistics companies don’t track their carbon footprint. Through its business models (SaaS subscription for Supply Chain
Digitalization and IaaS API Call for the activity analytics), the startup is aimed to help corporates in Indonesia to do hassle-
free Carbon Footprint Tracking using supply chain activity analytics. Its platform is capable to track and calculate scope
3 emissions using primary and verifiable data. Eumir suggests that the government can support startups like Automa by
mandating real-time energy use monitoring and reporting for businesses in various sectors, calculating carbon emissions,
enforcing real-time tracking and reporting of logistics and supply chain operations, requiring businesses to report KPIs and
working hours of logistics workers, offering financial incentives for proper carbon tracking and offsets implementation.
Eumaar Bethbeder
Co-Founder and CMO
Batex
Helping Indonesia achieve its goal as a global EV powerhouse
In 2012, Rina Wiji Astuti, a graduate of UNS, initiated her research on lithium-ion batteries in collaboration with universities
such as UGM, ITS, and ITB. This research eventually led to the establishment of Batex in 2020. As a hardware-based startup,
Batex specializes in manufacturing and supplying Lithium-Ion (Li-on) batteries and related products for electric vehicles (EVs)
and energy storage systems. With patents in battery cooling systems and multi-purpose packs, Batex underwent a four-
year incubation period in the UNS Incubator Program before officially becoming PT. Batex Energi Mandiri in 2020. Currently,
Batex has already supplied various battery types to numerous EV producers in Indonesia and aims to become the leading
producer of lithium-ion batteries in the country by 2030. To achieve this goal, Batex seeks government support for local battery
manufacturers, as well as improvements in research and development (R&D) and testing facilities in Indonesia due to the
current lack of advanced equipment and machinery. Additionally, Rina hopes the government will grant small companies like Rina Wiji Astuti
Batex access to nickel resources. Founder and CEO

80
Fiscal Incentives
Offer tax credits for individual and corporate investors to
boost investment in cleantech startups
Maryland Innovation Investment Tax Credit (IITC) - Small Business Venture Capital Tax Credit (SBVCTC)
Maryland, The USA British Columbia, Canada
Goal: IITC aims to promote growth in Maryland’s technology sectors by Goal: BVCTC incentivizes investors to provide equity capital to small
offering incentives for investment in early-stage companies. The program businesses in British Columbia, enabling these businesses to access
seeks to increase the number of innovative technology companies in early-stage venture capital and foster their development and expansion.
Maryland, increase investment in technology sectors, and encourage Eligibility: Individual or corporate investors that invest in shares of a
individual investors to invest in Maryland technology companies. registered venture capital corporation or eligible business corporation
(EBC).
Eligibility: Individuals or entities who invest at least $25,000 in a Qualified
Maryland Technology Company (QMTC) that operates in an eligible EBC: To be qualified as an EBC, a company must be registered to do
technology sector such as energy and sustainability. business in British Columbia (BC), have no more than 100 employees,
pay at least 75% of annual salaries to BC employees, have at least 80%
QMTC Requirement: Companies that have an aggregate capitalization of of assets located in BC and $25K in equity capital, and engage in one
at least $100,000 and fewer than 50 full-time employees as certified by the or more qualified activities including development of clean technology.
Department of Commerce. Incentive: Individual investors can claim a refundable tax credit of 30%
Incentive: Income tax credits of 33% of the investment amount, with a on eligible investments, with a maximum annual tax credit of $120,000.
maximum credit of $250,000. QMTCs located in Allegany, Dorchester, Corporate investors can claim a non-refundable tax credit of 30%, with no
Garrett, and Somerset counties have a higher credit rate of 50%, with a annual limit.
maximum credit of $500,000. Budget: From 2022 to 2024, BC government plans to raise the yearly
maximum venture capital tax credit from $38.5 million to $41 million.
Source: Maryland Department of Commerce, n.d. The additional $2.5 million will be designated for investments in clean
technology companies.
Source: Government of British Columbia, n.d.
• Tax credits have proven to be effective in stimulating investment in early-stage cleantech startups. Experiences from the US and Canada demonstrate that local governments
in both countries utilize tax credits to incentivize individual and corporate investors, mitigating the initial costs and risks associated with such investments. Specifically in the
cleantech sector, these tax credits serve to reduce investors’ tax liability, making investments in cleantech companies more appealing and financially feasible.
FISCAL INCENTIVES
• The Indonesian government should consider implementing tax credits tied to investors’ investment amounts to encourage a broader range of investors to participate in cleantech
investments, including those who may have been hesitant to invest due to perceived higher risks associated with early-stage cleantech startups. A tax credit scheme offers more
advantages to investors compared to the existing tax incentives in the country where the government provides investors with income tax exemptions on the profits generated
from equity investments in small businesses. Given approximately 90% of startups fail (Forbes, 2021), a significant portion of investors may not benefit from current incentives. In
contrast, tax credits would provide investors with incentives regardless of the success or profitability of the ventures they support.
82
Provide R&D tax credits to early stage, pre-revenue cleantech
startups to spur homegrown cleantech innovation
The R&D Tax Credit for Small Businesses - The R&D Tax Incentive - Australia
The USA
Eligibility: To qualify, a company must conduct an R&D project that is Eligibility: To be eligible for R&D tax offset, a company must be
specific and well-defined, advances the scientific aspect of the business incorporated under Australian or foreign law, engage in eligible core
or products, employing either a scientific method or a trial and error research and development activities, and have eligible R&D expenditure
approach, and grounded in the hard sciences such as biology, engineering, that exceeds $20,000. If a company has R&D expenditure less than
or computer science. $20,000, it can still claim the tax offset by hiring a registered Research
Service Provider to conduct R&D.
Qualifying Expenses: Wages/salaries, US-based contractors that
perform R&D activities, hardware & material supplies, and computer Incentive: Tax offset for eligible R&D activities.
leases. Ϣ For companies with a combined turnover of less than $20 million, the
Incentive: An R&D tax credit for small businesses by up to $500,000 refundable R&D tax offset is the corporate tax rate plus an additional
annually. Starting in 2023, small businesses will have the opportunity to 18.5% premium.
utilize this credit to reduce payroll taxes (if they have no taxable income Ϣ For companies with a combined turnover of $20M or more, the non-
yet) and other business expenses. The tax credit can also be used to offset refundable R&D tax offset is corporate tax rate plus 8.5% or 16%
a company’s current year income tax liability or carried forward for premium, depending on the R&D intensity.
maximum 20 years as a deferred asset on its balance sheet until the Incentive Cap: R&D activities from 1 July 2021 onwards have a tax
company utilizes them. incentive cap of $150M.
Source: Kruze Consulting, n.d.; Ardius, n.d.; ADP Inc., n.d ;The White House, 2022
Source: Australian Government: Business, 2023.
• Given that most early-stage startups do not generate taxable income due to their lack of profitability, the current R&D super tax deduction, which is applicable to taxable income,
does not provide any benefits to these startups. Insights from the United States indicate that the government can still incentivize startups to drive innovation and commercialize
their ideas by implementing an R&D tax credit specifically tailored for early-stage, pre-revenue small businesses. This research tax credit would not require companies to be
profitable or generate taxable income in order to claim it. Instead, the government should allow startups to utilize the R&D tax credit to offset their payroll taxes. This would
significantly reduce their burn rate and improve their cash flow, making them more appealing to potential investors.
FISCAL INCENTIVES
• By introducing an R&D tax credit tailored for early-stage startups, the government provides crucial assistance to these small businesses, irrespective of their taxable income or
financial performance. In the realm of cleantech startups, this fiscal incentive empowers them to concentrate on their key competencies in cleantech innovation, enabling them to
tackle environmental issues, generate employment opportunities, and become a new economic driver for Indonesia.

83
Incentivize cleantech startups in the manufacturing and
service-provider sectors to establish supply chain and foster
the expansion of the cleantech service industry
Inflation Reduction Act (IRA)’s Advanced Energy Green Income Tax Exemption (GITE) Services - Malaysia
Project Credit - The USA
Eligibility: Projects that involve (1) upgrading, expanding, or establishing Eligibility: Companies must be verified by the Malaysian Green
manufacturing facilities for the production or recycling of various renewable Technology Corporation (MGTC) and listed in their official directory,
energy and energy-efficient equipment, carbon capture equipment, and undertake at least 3 qualifying green technology activities, have 100%
advanced vehicles; (2) retrofitting industrial facilities with equipment aimed income derived from green technology services, employ at least 5 full-time
at achieving a minimum 20% reduction in greenhouse gas emissions; employees in Malaysia with at least 2 competent personnel specialized in
or (3) upgrading, expanding, or establishing industrial facilities for the green technology.
processing, refining, or recycling of critical materials. Qualified Greentech Activities: Audit, engineering, procurement,
Incentive: A tax credit for qualified investments equals 30% of the consultancy, advisory, system design, testing, commissioning, and
investment amount if wage and apprenticeship requirements are met (or installation.
6% if requirements are not met). Incentive: A 70% income tax exemption on company statutory income
Government Budget: The government has set aside $10 billion for from providing qualifying green services, applicable for 3 years starting from
qualified projects in 2023 and onwards with a minimum of $4 billion going the year of assessment in which the first invoice is issued. Tax incentive
to projects in energy communities affected by coal mining and coal plant applications can be submitted between 1 January 2020 to 31 December
closure. 2023.
Source: Cleanenergy.gov, 2023 Source: MGTC, 2022; Hoong & Ling, 2022
• To foster the growth of the domestic cleantech manufacturing sector, it is recommended that the government introduces tax incentives specifically tailored for local cleantech
manufacturers. Our survey findings indicate the presence of cleantech startups engaged in manufacturing activities, including battery manufacturers and EV manufacturers. Since
establishing production facilities and acquiring equipment involves significant upfront investments in the cleantech manufacturing industry, offering tax credits as incentives would
provide valuable financial support to these startups. By reducing the tax burden, such incentives can help stimulate the growth and competitiveness of cleantech manufacturing,
decreasing reliance on technology imports, generating well-paying jobs, and ultimately contributing to the development of a sustainable and resilient economy.
• In a manner similar to the traditional fossil fuel sector, the cleantech industry also relies on specialized service providers that play a vital role in facilitating the deployment of clean
FISCAL INCENTIVES
energy technologies. These services encompass a range of technical, engineering, and logistical support functions that are essential for the smooth operation of the cleantech
sector. The service industry within cleantech plays a pivotal role in supporting the entire value chain of the sector. To foster the growth of this industry within the country, it would
be advantageous for the government to introduce tax incentives such as tax exemptions, tax credits, or tax deductions. By implementing these measures, the government can
empower service companies and startups to contribute effectively to the efficient and safe utilization of clean energy technologies.

84
Design fiscal incentives aimed at Real Property Tax Exemption for Green
Buildings - New York, The USA
stimulating demand for cleantech
solutions
༦ Eligibility: Property must be owned by an individual/
individuals/a private organization, the construction or
improvement (excluding regular maintenance or repairs)
must have a value of more than $10,000 and must have
China: The long-term oriented and comprehensive started on or after January 1, 2013, and projects must meet
incentives for EVs
the LEED, Green Globes, American National Standards
Institute, or other equivalent green building certification
༦ China’s remarkable achievement of capturing 59% of global EV sales in 2022 (Mandal, 2023) can standards.
be attributed to its long-standing inclusion of new-energy vehicles (NEVs) such as battery electric
༦ Incentive: The allowable tax exemption level of 20% to
vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell electric vehicles (FCEVs)
100% depending on year and certification level (DSIRE,
in its five-year plans (FYP) since 2001. Additionally, a major plan promoting the adoption of NEVs
2020).
was introduced by four central ministries in September 2013:
♦ Subsidy: Individuals who purchased new-energy vehicles (NEVs) were eligible for subsidies
ranging from RMB 35,000 to RMB 60,000 (equivalent to $5,656 to $9,696). The subsidy was Federal Tax Credit for Solar Home Systems -
applicable to vehicles listed in the Ministry of Industry and Information Technology’s (MIIT) The USA
catalog of domestically produced models. The national subsidy program was planned to run
until 2020 with gradual annual reductions. ༦ Eligibility: A solar PV system installed between 2017
and 2034 at a US residence, owned by the homeowner or
♦ Tax and Fees Exemption: From 2014 to 2017, China’s State Council abolished the 10%
purchased interest in an off-site community solar project.
purchase tax for domestically manufactured new-energy vehicles (NEVs). Furthermore, certain
local governments, including Shanghai, have introduced initiatives that offer free license plates ༦ Incentive: Solar PV systems installed in 2020 and 2021
for new Tesla vehicles. This incentive holds significance considering that the average cost of a are eligible for a 26% tax credit, those installed in 2022-
Shanghai license plate amounts to RMB 74,000 ($11,959). 2032 are eligible for a 30% tax credit. The tax credit
♦ Local Govt: in China also provide supplementary purchase subsidies for NEVs that match the decreases to 26% for systems installed in 2033 and to
national subsidy RMB-for-RMB with amounts reaching as high as RMB 60,000 ($9,696). This 22% for systems installed in 2034. It expires starting in
results in a combined purchase subsidy of up to RMB 120,000 ($19,395) for eligible vehicles 2035 unless renewed by Congress (US Department of
(USCBC, 2015). Energy, n.d.).
• The Indonesian government has taken some initial steps to encourage the adoption of EVs, but the current maximum subsidy of $5.34K is notably lower compared to examples
FISCAL INCENTIVES
set by other countries. For instance, China provides EV subsidies of up to $19.4K by combining subsidies from both national and local governments. To drive greater demand,
the Indonesian government should consider increasing the EV subsidies and collaborate with sub-national governments to offer more subsidies for EVs.
• Other than EV subsidies, the government should consider implementing a range of incentives such as tax exemptions, tax credits, and other fiscal measures to boost the demand
for energy efficiency, renewable energy, and other clean energy technologies in Indonesia. These incentives can play a crucial role in encouraging businesses and individuals to
adopt sustainable practices and invest in clean energy solutions, ultimately contributing to the country’s transition to a greener and more sustainable future.
CLEAN ENERGY TECHNOLOGY Clean energy technology startups in Indonesia:

STARTUPS IN INDONESIA How the government can help the ecosystem
85
Financial Incentives
Tailor grant programs to startup development phases to help startups survive
the technological valley of death
Morocco Green Innoboost* California CALSEED & CalTestBed** Startup Chile*
Government institution in charge: Government institution in charge: Government institution in charge:

Research Institute for Solar Energy and New Energies California Energy Commission Production Development Corporation (Corfo)
(IRESEN) .
Fund Manager: Eligibility:
Eligibility: New Energy Nexus Fast-growing tech start-ups from any country that aim to
early-stage clean energy startups and innovators establish themselves in Chile and have the potential to
Eligibility:
planned to move their technologies from the lab to the scale rapidly and penetrate the market within 2-3 years.
market (technology readiness level (TRL) of 6 to 8). California-based early-stage clean energy startups that
have TRL 2-4 (CalSEED) and TRL 5-7 (CalTestBed). Funding size:
Funding size: Non-dilutive grants via calls across 3 stages:
Funding size:
$160,000 as a grant or equity • Pre-acceleration (TRL 1-3): $12K + $6K top-up
• CalSEED program: seed-stage grants of up to $600K
Mechanism: • Acceleration (TRL 4-6): $30K + $30K top-up
($150K for Concept Awards and a $450K Prototype
Choosing the grant option requires paying IRESEN a Award) per startup with total grants of $24M • Scale (TRL 7-9): $90K
1.5% royalty on their annual revenue from the innovation • CalTestBed program: $8.8M in testing vouchers that
indefinitely, starting from the third year after the first can be used at 60+ testing facilities in California
revenue.
Source: *IEA, 2022 Source: **Calseed.fund Source: *IEA, 2022
• Non-dilutive public grants, offered through calls and prizes, are crucial for early-stage cleantech startups which are still developing their technologies before seeking dilutive angel and
seed equity investments (IEA, 2022). These non-dilutive grants can be distributed directly by government-owned entities or indirectly through private third parties, as demonstrated in
the CalSEED and CalTestBed programs.
• The Indonesian government should provide grant programs that meet the specific needs of cleantech startups at various stages of development. These grants should correspond to
the technology readiness level (TRL) of the technology, with particular emphasis on the demonstration and validation stages (TRL 6 to 8) where rigorous testing is necessary to prove
functionality and system-level performance before applying them to industry (McCrea & Palumbo, 2014). This is crucial because many technologies fail to survive this phase.
• To improve government support for cleantech startups, the Indonesian government should adopt best practices from other countries and use TRL as the basis for accepting startup
participants and differentiating government grant programs. Grant programs should be successive to ensure a path to scalability and avoid repetition as seen in the US where CalSEED
awardees must complete their concept awards before applying to CalTestBed. Lastly, the grant size should be increased from current levels of $17K-40K to better meet early-stage
startup funding needs.

• A possible addition to the grant program for cleantech startups in Indonesia is to offer free access to testing facilities or testing vouchers that can be used at qualified testing facilities
across the country. This is crucial since many cleantech startups have hardware that needs to undergo rigorous testing. Additionally, the government should ensure that information
about available grant programs is widely disseminated within the startup community to maximize their benefits.
Source: *IEA, 2022, **Calseed.fund
87
Ensure that grant prizes propel winners to the next level
German Start Up Energy Transition* American-Made Challenges*
Government institution in charge: German Energy Agency (Dena) Government institution in charge: National Renewable Energy
Co-organizer: World Energy Council (WEC) Laboratory (NREL)
Program: Dena together with WEC organizes an annual award ceremony for Funder: Department of Energy (DOE) and private sector sponsors
clean energy technology innovators Program: A multi-million dollar competition aimed to incentivize energy
Goals: Increase global publicity on cleantech startups and help connect technology innovations, technology-specific prizes depending on problem
startups with policymakers and industry experts to discuss barriers to disruptive statements proposed by a sponsoring government department for each
cleantech innovation challenge.
Eligibility: cleantech startups with a prototype (TRL 4-6) from around the world Eligibility: energy innovations from ideation stage to TRL 6.
Grant prize: up to $11K for business or technology development Grant prize: Ideation stage (“Ready!”): $50K for each of max 20 winners
Other benefits: a free promotional video for 15 finalists, media publicity Prototype stage (“Set!”): $100K + $75K in national laboratory vouchers for
through WEC media partners, regular communications to connect startups, each of max 10 winners
potential investors and industrial partners, participation in international Pilot stage (“Go!”): $500K + $75K in national laboratory vouchers for each of
conferences such as Berlin Energy Transition Dialogue (BETD) and World max 2 winners for pilot testing with an industrial partner.
Energy Congress in Abu Dhabi Multi-step prizes can take over two and a half years to complete all stages in
sequence.
Source: *IEA, 2022
• Government grant programs should be designed to take cleantech startups to the next level, and a multi-step prize approach can be effective in creating impactful
results. Other countries have shown that winners can develop their technologies further with increasing funding from different stages of prizes. Additionally, access to
national laboratories can complement grant prize arrangements.
• When the prize money is not substantial, startups can benefit more from the publicity and exposure they receive, which can be more valuable than the actual prize money
for the winner. Being recognized as a finalist can help them make valuable connections with potential investors and gain credibility for their business ideas, which can
lead to larger funding opportunities in the future (IEA, 2022).
• Taking cues from successful grant programs in other countries, the Indonesian government should revamp existing programs such as Startup4Industry, ETIC, PLN
G R A N TS V I A P R I Z E S
Elevation, and BRIN PPBR to differentiate them based on the technology readiness level (TRL) and run them successively for maximum impact on cleantech startup
development. In using the grants, startups should be given more flexibility in which they are allowed to use the funding for essential purposes such as paying salaries and
procuring necessary equipment. The government should also streamline the grant application process to address delays and bureaucratic challenges faced by startups
or hire private third parties to manage the programs more efficiently. Furthermore, grant programs should offer winners local and international publicity to increase their
visibility to potential investors and partners in Indonesia and beyond.

88
Catalyze private investments in cleantech startups through
government guidance funds and state-owned VCs
Governments around the world have been offering equity investments to startups to
Enterprise Singapore* a statutory board under Singapore’s
encourage private sector investment in high-risk ventures such as cleantech startups.
Ministry of Trade and Industry, manages the SEEDS Capital and
Singapore has implemented direct (co-investment) and indirect (fund of funds) equity
Startup SG Equity Programs aimed at catalyzing private sector
investment schemes to aid startups. Meanwhile, the Chinese government has provided investments in early-stage innovative Singapore-based tech startups
equity investments through state-owned enterprise investment arms, national and with IP and worldwide market potential.
subnational public banks, investment funds, and university funds. In fact, the Chinese Funding schemes:
government has equity investments in startups more than any other governments (IEA, ๺ Co-investment equity financing (SEED Capital) with third party co-
2022), resulting in the creation of successful cleantech startups that have gone on to investors. Investment cap can range from $1.5M (general tech) to
dominate the global market. $6M (deep tech) per startup. The co-investment ratio between the
government and private sector varies depending on the technology
→ To boost private investments in cleantech startups and other emerging, strategic type and the amount of private sector investment.
industries, the Indonesian government should consider setting up co-investment ๺ Fund of funds where the government will invest in selected VCs that
and fund of funds programs that offer patient capital to early stage startups. The will later put equity investments in early-stage deep tech startups.
emphasis on early stages is crucial since startups face challenges in attracting private Government investment should be matched by private sector
investors during this phase due to their perceived high risk. Under such schemes, the investors (1:1) with a minimum fund size of $22M.
government should be willing to accept some risk and let professional fund managers
to make market-driven decisions. Unlike the Merah Putih Fund and the Energy Fund Shenzhen Capital Group (SCG)* is a Chinese state-owned
that are only managed by state-owned VCs, the government should allow private sector venture capital that was established by the city government of
VCs to be its fund managers. By doing so, it allows private investors to bring their expertise Shenzhen in 1999. To date, the company has invested in 400
and capital to the table, thus increasing the impact of government support on the startup startups, including at least 20 cleantech companies (seed funding to
ecosystem. post-IPO equity). Two of them:
Phylion Battery produces lithium-ion batteries
→ Learning from China, the government should use existing state-owned enterprise that are designed for electric vehicles. In 2022, SCG invested
investment arms to finance cleantech startups. As currently no government-VCs CNY950m ($137M) in a late VC funding round.
have invested in cleantech startups, the government may direct these VCs to allocate a JinkoSolar is the world’s largest solar module manufacturer
portion of their investment portfolio to cleantech startups. Similar to aforementioned
with its revenue reaching $10.6 billion in 2022 (Investopedia, 2023).

schemes, the government should tolerate risky investments made by these VCs, Founded in 2006, the company started as a startup that focused on wafer
including investment in early stage startups. Arguably, the state-owned VCs should focus manufacturing. The company received series B funding of $23.3M from
more on early stage startups instead of the late stage ones to prevent public funds from SCG and two other VCs in 2008.
crowding private capital out of the market.

89
Build a bridge to bankability through concessional loans
and loan guarantees for later-stage cleantech startups
Innovation Norway Initiative
How the US DOE Loan Programs helped put Tesla on the map
The Norwegian government provides quickly approved, loans and
guarantees for (0-5 years) startups. Loans are typically granted for During its initial seven years after being established in 2003, Tesla
business concepts that are anticipated to enter the market swiftly and relied solely on private funding, spearheaded by Elon Musk. In
pose a relatively low chance of failure. 2010, Tesla Motors received a low-interest loan of $465 million
from the US Department of Energy (DOE) under the Advanced Technology
Vehicle Manufacturing (AVTM) Program. The loan was used for setting up
In 2021, Innovation Norway allocated $72 M in loans and $18M in
2021 manufacturing engineering and assembly and a powertrain plant in California
guarantees for startups. $12M was disbursed to 88 startups as a loan with
to launch Model S. The loan helped Tesla boost its production capacity from
a max loan amount of $4.75M per startup and a loan tenor of 5-15 years
merely thousand units to millions today and saved the company from its
for low-risk loans and up to 15 years for high-risk loans. The interest rates
early demise. In 2013, Tesla repaid the loan nine years earlier than the initial
were based on market rates for low-risk loans and higher than private
schedule. The loan is largely seen as a good investment with the company
credit market rates for high-risk loans. Guarantee liability was up to 75%
paid interest of $12 million plus $14 million of bonus/exit payments to
for companies that were less than 3 years old and 50% for others with
US taxpayers.
commission rates of 1% and 2%, respectively. Innovation Norway bore
no financial risk as loss reserves covered any potential losses.
Source: Innovation Norway Source: Tesla, 2010, Tesla, 2013, Cole, J., 2013, Hawkins, A.J., 2022, Casey, T., 2023
• The government can provide support to cleantech startups by offering concessional loans, venture debt, and loan guarantees. These forms of financing can be appealing to
startups looking to expand their operations, maintain control over their company, and avoid pressure from equity investors. Concessional loans or venture debt offer lower
interest rates than commercial loans, making them attractive funding sources for companies with limited assets or cash flow. Concessional loans are preferable to grants
because they do not come with spending restrictions and can be repaid over time as the company grows. Loan guarantees act as a safety net for lenders, increasing the
likelihood of startups securing financing. By offering this type of support, governments can help build a bridge to bankability for cleantech startups, enabling them to access
the funding they need to grow and succeed in the market as well as survive the commercialization valley of death.
LOA N S A N D LOA N G UA R A N T E E
• Indonesia can follow Singapore’s example of supporting venture debt platforms like Innoven Capital, which provide debt capital to high-growth innovative ventures backed
by venture capital firms. While, BRI Venture, through its Sembrani Nusantara Fund, has started offering venture debt to startups (Florene, 2020), the government should
encourage more state-owned VCs to offer similar venture debt options in the future.
• Loans, venture debt, and loan guarantees may not be ideal for early-stage startups as debt could decrease their attractiveness to potential investors who may need to provide
extra funds to help repay the loan as part of the deal (IEA, 2022). Moreover, lenders assume a substantial risk because of the high likelihood of early-stage startup failures. As a
result, loans and loan guarantees are more appropriate for later-stage cleantech startups that are starting to commercialize their products. As cleantech technologies become
more viable, startups can scale up through commercial debt markets.

90
Improve the Kedaireka’s Matching
Fund program to increase R&D The US SBIR and STTR Programs
collaboration between universities The Small Business Innovation Research (SBI

R) and Small Business
and cleantech startups Technology Transfer (STTR) programs are US
designed to encourage local small businesse
government programs
s (including startups)
to engage in R&D with commercialization
potential. Similar to the
Kedaireka’s Matching Fund program, the STT
Our Recommendation R program mandates
small businesses to partner with research
institutions (including
universities) in conducting R&D.
The effectiveness of the Kedaireka’s Matching Fund program in promoting collaboration
between universities and industries has been praised by the Indonesian government. However, STTR differs from SBIR in three ways: (1)
an intellectual property
verifying this claim is difficult due to the lack of available data on the number of industries, agreement is required, (2) small business mus
t perform a minimum
startups, and universities involved in the program. Furthermore, it is unclear whether the of 40% of the R&D while the research instit
ution at least 30%, and
program has actually had a positive impact on the country’s innovation capabilities since there (3) the Principal Investigator can be employed
mainly by the partner
is no data available on the intellectual property created through the program. research institution.
Program phases: Phase I evaluates the

technical feasibility and
To improve the program and ensure the impact on the cleantech startup ecosystem, the commercial potential with awards of $50,000-
$250,000 for 6 months
government should: (SBIR) or 1 year (STTR). Phase II cont
inues R&D efforts with
• Remove the requirement of 50% cash contribution from startups. Lessons learned awards of $750,000 for 2 years, limited to Phas
e I awardees. Phase
from the STTR program show that to encourage small businesses to conduct R&D, III focuses on commercialization without SBIR
/STTR funding, often
funding should be given away instead of being demanded from them. through federal agencies’ non-SBIR/STTR fund
ed R&D or production
• Make reporting in line with the proposed R&D timeframe. The provision of final contracts.
reporting at the end of each year should be revised and changed in a way that universities Funding sources: Federal agencies with extra
and startups involved have sufficient time to conduct meaningful R&D activities before mural R&D budgets
over $100 million allocate 3.2% of their budg
submitting their report. ets to the SBIR program,
while those with budgets over $1 billion rese
rve 0.45% for STTR.
• Streamline the application process and make it less arduous. Facilitate networking 11 agencies participate in SBIR and 5 in STTR
, each with their own
events between universities and startups and intensify information dissemination on the guidelines and R&D topics. Small businesse
s submit proposals to
FINANCIAL INCENTIVES
program to increase cleantech startup participation. participating agencies and awards are given
competitively. For energy
• Increase transparency by releasing data on the number of industry, startup, research, DOE provides R&D fund in the form
of grants.
and university participants in the program and IP creation to evaluate the program’s Sources: sbir.gov, DOE
effectiveness in achieving its goals.

91
Local governments should financially support local cleantech
startups and incubators
Currently, local governments have only been involved in providing incubation services and free co-
working spaces for cleantech startups. We suggest that the government expand their involvement How Chinese local governments play a key role in
in the cleantech startup ecosystem by implementing the following recommendations: supporting local (cleantech) startup ecosystems
� Local governments in Indonesia should explore the possibility of establishing The creation of university incubators in China is greatly
venture capital firms that focus on providing financial support to local startups supported by local governments, who provide land and initial
with the potential to become a new economic driver in their respective regions. This funds. Moreover, the development of these incubators is incorporated
could be a feasible idea considering that almost all provincial governments in Indonesia into the regional economic development plan, and a portion of local
have their own banks, such as Bank DKI (owned by the provincial government of government’s annual budgets is assigned to facilitate their growth.
DKI Jakarta) and Bank Jatim (owned by the provincial government of East Java).
Local governments actively finance new ventures, help pool
funds, and identify investment opportunities. They set up
In fact, regulation No. 35/2015 by OJK permits government and regional enterprises that are
local government-financed VC firms and guarantee companies to
owned by the region (BUMD) to invest in Venture Capital (VC) companies, according to Article 36
assist in securing bank loans for local ventures. Tenant companies in
(2). This creates the opportunity to establish VC arms within provincial government-owned banks
government-backed incubators receive preferential conditions such
or provide financial support to local VCs through a fund of funds program.
as tax exemptions and below-market rents. Favorable tax policies may
extend beyond the incubation period.
� Local governments should consider providing financial support to local (university)
incubators to assist local startups in developing their businesses in conjunction with financial Five of the six largest electric vehicle startups in China that sold
support from the national government. Specifically, support for university incubators can help over 435,000 cars in 2021 had minority investments from local
local universities to commercialize their R&D products. Additionally, local governments can government-owned companies.
increase their economic competitiveness by combining this support with a strategy to encourage Entrepreneurs who collaborate with local governments in
supported companies to continue doing business in the area, thereby promoting the growth of China can benefit from streamlined approval processes and
innovative emerging industries. access to state-funded financing, providing some political protection.
These types of partnerships, where local governments hold minority
� To avoid the misuse of funds (e.g. corruption), local governments need to ensure data stakes in private companies, have been a significant driver of China’s
FINANCIAL INCENTIVES
transparency and accountability. Additionally, the integration of such support into the regional economic growth. The key to their success is that entrepreneurs can
medium term development plan (RPJMD) would be important to warrant synergies with the overall maintain control over essential business decisions and prioritize market
plan. Implementing a robust monitoring and evaluation framework is also essential to assess the demands over politics.
effectiveness and impact of this support on the overall cleantech startup ecosystem in the country. Source: Matt, M., & Tang, M.F., 2010, White, S., et. al., 2002, Hancock, T., 2022

92
Offer indirect equity investments through a public private
partnership scheme with private incubators and accelerators
Recommendation
Governments in other countries have channeled equity investments to Examples of PPP between governments and private incubators
startups through not only VCs but also incubators and accelerators. When and accelerators
public funds are invested in a venture capital fund (a fund-of-funds), the
government typically receives the profits from any future equity sales. Independent, not-for-profit incubators (including university
Meanwhile, profits from public funds invested in equity by private incubators incubators) receive government funding for up to five years
are usually used to finance future incubation expenses (IEA, 2022). Support to cover operational costs and investment in startups
provided to private incubators can be tailored to government priorities as through equity stakes or debt. Profits from such investments
observed in India. are reinvested for long-term sustainability of the incubator
India’s
after the five year period. In 2021, there were 125 incubators
Technology
In Indonesia, such a PPP between incubators and the government is still Business with different technology focus areas supported by TBI.
absent despite its potential to help develop certain startup ecosystems in the Incubator Startups supported can get seed funding of $13K-130K.
country. To increase incubator support for cleantech startups, we recommend: Program The TBI program is funded by government departments
and programs.
• The government to set up a collaboration and partnership with private
incubators and accelerators to create incubation and acceleration The Brazilian government provided funding to private-
programs specifically focused on clean energy technologies. Other than sector accelerators that offer funding (including equity
providing mentoring, coaching and networking opportunities to startups, investments) and acceleration programs for tech-based
these public private partnership initiatives should be directed to startups with global potential. Start-Up Brazil supported 13
offer financial support to cleantech startups through government- accelerators in Brazil from 2012 to 2019, providing up to
sourced equity investments. Start-Up $70K in funding for each startup (pre-seed and seed) and
Brazil grants of $35K to promising Brazilian startups. The program
Additionally, the partnership with private incubators and accelerators would Program has supported cleantech startups such as Desh (energy
help address concerns about the “less professional” government incubation metering technology) and SOMA (electric vehicles).
programs highlighted by stakeholders.
Source: IEA, 2022

93
Non-Financial incentives
Streamline business-related procedures to improve ease of
doing business
Starting a Business: Streamlining procedures for starting a business is crucial to One Step to Start a Company, New Zealand
set up a vibrant startup ecosystem. The government should learn from New Zealand,
where it only takes one step and half a day to start a business in the country. To ease To start a business, entrepreneurs can simply apply online through the
the process of starting a company, the government should improve the OSS platform dedicated platform, process takes only 0.5 days. The platform
by reducing the number of procedures required to register a firm, shortening the overall allows them to reserve a company name, fill out forms with
process. company details, pay the registration fee, and also apply for a
company IRD (Inland Revenue Department) number and register
Resolving Insolvency: An effective insolvency policy provides legal protection for for GST (Goods and Services Tax) simultaneously for tax purposes.
both investors and creditors that support startups. Such protection increase investor Source: World Bank, 2020
confidence and encourage capital flow into the startup ecosystem by safeguarding
their rights and interests. The government should further improve the insolvency policy
Green Channel Accelerated Patent Application,
in Indonesia by improving the recovery rate and shortening the resolution process by the UK
learning from best practices from countries such as Finland.
This service allows applicants to expedite the processing of their patent
Patent Application: To support cleantech startups, the government should application if their invention has environmental benefits. They can request
streamline and accelerate the patent application process, aiming for a shorter time acceleration for specific processes such as search, examination, combined
frame similar to countries like the UK. Incentives should be provided to expedite search and examination, and/or publication. The average time to grant
the patenting process specifically for environmentally-friendly products, including for a green channel patent application was 11 months. This is way shorter
cleantech innovations. compared to the average granting time of 2 - 3 years.
Source: Intellectual property office, 2014; EIP, 2021; Griffiths, 2023.
SNI Application: Creating a streamlined process for SNI applications is essential to
support cleantech startups in aligning their technologies with national standards. It is
crucial to establish clear procedures to prevent confusion and delays in obtaining the SNI Best Insolvency Resolution, Finland
certificate. Additionally, providing guidance and support throughout the SNI application
process would greatly assist cleantech startups in navigating the requirements and Resolving insolvency in Finland typically takes around 11 months. Within four
ensuring a smooth and efficient certification process. months of the reorganization proceedings beginning, a reorganization plan
must be proposed. Once approved, the debtor can implement it. The related
E A S E O F D O I N G B US I N E SS
Foreign Workers: The government should consider relaxing the immigration rules costs, including attorneys’ fees, the liquidator’s remuneration, and fees for
by allowing more highly-skilled foreign workers to work in Indonesia. This is crucial, other professionals engaged, are relatively low, at only 3.5% of the debtor’s
particularly in the cleantech industry where startups may face challenges in finding estate. The recovery rate is 88 cents on the dollar.
skilled workers locally due to a shortage of specific expertise in cleantech. Foreign Source: World Bank, 2020b
workers can bring in technical skills and industry knowledge that can help the country
become cleantech superpower in the global market.
95
Enhance energy policy and its enforcement to bolster the
demand for cleantech startup solutions
Power Sector Transport Sector
Regulation of the Minister of Industry No. 6/2023 on Guidelines

for Providing Government Assistance for the Purchase of Two-
The Presidential Regulation No. 112/2022 on the Acceleration of Renewable
Wheel Battery-Based Electric Motorized Vehicles.
Energy Development for Electricity Supply
Broaden the eligibility criteria for electric motorcycle subsidies
1. PLN to start the procurement process for renewable energy projects using the tariffs
to include all individuals and entities interested in utilizing new or
outlined in Reg. 112 and/or the reenactment of Feed-in-Tariffs (FIT).
converted electric motorcycles, expanding beyond MSMEs and
2. Create a one-gate system to streamline the process for obtaining permits, simplify
subsidized electricity users (450-900VA).
licensing procedures, and provide a clear timeline for the process.
Source: IESR, 2022.

The MEMR Regulation No. 26/2021 on Rooftop Solar PV (proposed revision)
• The quota system proposed in the revision of Reg. 26 should be set transparently with
Government Regulation No. 33/2023 on Energy Conservation:
monitoring and approval from the MEMR.
Establish derivative regulations that provide fiscal incentives
• The quotas should be reviewed more frequently from only once every 5 years as
to entities adhering to the regulations and ensure rigorous law
proposed to at least once every 2 years.
enforcement to stimulate the demand for energy-efficient products
• Instead of eliminating net metering entirely, the government should continue
and services.
implementing it for residential customers to increase the economic viability of rooftop
Government Regulation No.16/2021 on Green Building:
solar PV and reduce the payback period.
Increase capacity building in relevant areas of expertise required for
• The application and licensing procedures for rooftop solar PV installations must be
the implementation of green building practices. This will expedite
made clear and concise.
the effective implementation of Reg. 16 ahead of the 2026 target
Sources: IESR, 2023a; Julian, 2023. (IESR, 2022).

→ Implement robust policy monitoring and evaluation (M&E) systems to enable evidence-based policy design and implementation, fair assessment of policy
effectiveness, efficiency, and evaluation of results and impacts.
→ Increase cleantech startups participation in the energy policy making process.

96
Improve the regulatory framework to create a dynamic and
investor-friendly environment
To attract investors to establish their venture fund products in Indonesia that later
will support the growth of the startup ecosystem in Indonesia, we recommend:
Regulatory Form Tax Incentives
Offer competitive and attractive tax incentives to encourage VCs to conduct

Review the existing regulation on the minimum capital requirement for
fundraising and investment activities within Indonesia. This can level the
establishing a venture capital and consider reducing the requirement to
playing field and make fundraising within the country more appealing.
make it more feasible for VCs to comply, creating a good venture capital
In addition, the government may introduce targeted incentives for VCs
ecosystem in the country. The government may also consider introducing
investing in specific sectors such as cleantech that are critical to Indonesia’s
different minimum capital requirements to encourage smaller and emerging
energy transition and economic growth. This can attract more venture
VC firms to enter the market and serve niche markets such as cleantech.
capital into priority industries and stimulate innovation.
Flexible Investment Structures Improve Taxation

The government should focus on attracting fund managers to establish Adopt a unified taxation approach for VCs and their investment vehicles
their funds in Indonesia and provide them with the freedom to structure to avoid treating them as separate entities. This approach can simplify
the funds, enabling them to adopt diverse investment theses based on tax compliance and reduce the risk of double taxation. Additionally, the
market opportunities and investor preferences. Leaving the fund managers government should make local taxation policies simpler and tax treaties with
to structure the funds according to their expertise and market insights foreign countries more comprehensive to prevent triple taxation for foreign
ensures a flexible and adaptable investment approach. This enables fund VCs. Indonesia can learn from Singapore whose double tax agreements
managers to tailor their investment strategies to meet the unique needs (DTA) that help dismantle the barriers to invest in the country.
and opportunities present in the Indonesian market, including the cleantech

sector.

97
Provide easy access to research facilities and office space by
collaborating with diverse stakeholders
• To address the intensive research requirements for
American-Made Challenges: Giving EcoLabs-COI: Collaborating with external
developing cleantech products and supporting overall
vouchers to help startups access partners to increase access to research
research efforts, the government should improve existing research infrastructure infrastructure
infrastructure. This can be achieved by expanding
Under the American-Made Challenges program, the US This government accelerator facilitates access to NTU
laboratory access through the provision of vouchers, DoE offers vouchers to startups, granting them access laboratories and facilities for prototyping and testing.
similar to the American-Made challenge, to alleviate to equipment and expertise at their 17 national Additionally, they collaborate with over 30 external
laboratories and other qualified facilities (IEA, 2022). organizations that provide various test beds (IEA, 2022).
the burden of high rental fees. These vouchers can
be awarded to selected winners or eligible startups
Cambridge Science Park: Center of world’s US DOE: Compiling national laboratories
participating in government incubation programs or leading tech business and public research facilities under one
meeting specific criteria. website
Established in 1970 by Cambridge Trinity College,
• Public research infrastructure, including the Park offers specialized facilities and services to The US government has consolidated 17 national
facilitate R&D in various sectors. Currently, it houses 130 laboratory websites and listed 28 DOE Office of Science
laboratories and workshops, should be listed and companies with 61% of them originating from Cambridge user facilities on the DoE website, offering them as
accessible on government websites to provide and 30% being foreign-owned (Cambridge Science shared resources for the scientific community and the
Park, n.d.). public (US DoE, n.d.).
information and promote their utilization. The
information provided on government websites
should be comprehensive, encompassing the research focus, available equipment, as well as partnership and rental procedures of the research
infrastructure.
• Furthermore, it is crucial to establish partnerships with universities, private research facilities, and industries to supplement the existing public research
infrastructure and equipment. Such partnerships are still nonexistent to date, hence the government should actively promote and facilitate these collaborations.
By leveraging the expertise and resources of various institutions, the research ecosystem can be strengthened, leading to increased innovation and the development
of cleantech startups.
• Drawing inspiration from the successful model of Cambridge University in the UK, the government should maximize the role of science and technology parks
as facilitators for collaboration between universities, industries, and startups. This collaborative approach can significantly enhance research cooperation,
commercialization, and the successful transformation of cutting-edge research into viable spin-off startups. With 22 science and technology parks spread across
the country, Indonesia has a valuable opportunity to leverage this infrastructure and foster the growth of technology-based startup ecosystems, including cleantech
startups. This, in turn, will position Indonesia as a prominent player in the global technology value chain.
• The government should consider providing office space or virtual offices for cleantech startups. Virtual offices, in particular, enable startups to register a business
address in an official office building while conducting their daily operations elsewhere. This is particularly beneficial for early-stage businesses, as establishing a legal
entity in Indonesia requires registration in a designated commercial area and not residential areas.
98
Set up testbeds, living labs, and regulatory sandboxes to foster
cleantech innovation
German JenErgieReal regulatory sandbox: Promoting
The government should set up testbeds that can be used by cleantech startups sustainable electricity and heat supply in the city of Jena
for prototype testing, innovation validation and refinement before their deployment
in the market. Testbeds are mainly focused on technical experimentation and
Germany launched the JenErgieReal regulatory sandbox in November
research and development activities with no involvement of regulatory or legal
2022 with the objective of accelerating the supply of sustainable electricity
aspects. Additionally, living labs can also enable cleantech startups to
and heat and transforming the urban energy system in Jena. The project
design, market-test, and launch their products and innovations with real
is financially supported by the Federal Ministry for Economic Affairs and
consumers. Drawing inspiration from the UK, Indonesia should consider setting
Climate Action (BMWK), which has allocated a total of EUR 20.56 million
up a similar program where startups can test their cleantech solutions in real-world
over a five-year period.
environments to understand user needs, preferences and behaviors, helping
them refine their solutions.
The regulatory sandbox in Jena will facilitate the development and
implementation of various innovative technologies, including large-
Other than testbeds and living labs, the government should also consider
scale electrical storage systems, PV and solar thermal systems,
establishing regulatory sandboxes to relax certain regulations and render
electric vehicles, and charging stations. It is expected to bring
a controlled environment for innovators to test their products, services, and
promising ideas to market maturity. In addition to its focus on technical
business models. Different from testbeds, sandboxes have a broader scope by
aspects, the JenErgieReal regulatory sandbox will also address the
integrating not only technical aspects but also regulatory considerations. Learning
regulatory environment to identify potential areas for improvement.
from Germany, Indonesia should design a multiyear regulatory sandbox program
Source: BMWK, 2022, IEA, 2023
to support cleantech companies in testing new technologies and business models
and use collected data to inform future regulatory decisions. This is particularly
important considering that the Indonesian energy sector is heavily regulated,
making it hard for new innovations to comply with existing regulations. Energy System Catapult Living Lab: Testing with real people
in real UK homes
To foster a high-tech and innovative economy and implement the aforementioned

recommendations, the government should prioritize increasing the national The Living Lab features 1,500+ smart homes equipped with room-by-
budget for research and development (R&D). Adhering to the planned Gross room sensors and a digital integration platform. This infrastructure allows
Domestic Expenditure on Research and Experimental Development (GERD) startups to test and receive feedback on their smart energy products and
ratio to GDP, with targets of 1.68% in 2024 and 2.52% in 2029 (LLDIKTI, 2020), services, including smart meters, IoT devices, and battery storage, directly
will provide the necessary resources to support innovative industries such as from real customers (Catapult Energy System, 2023).
cleantech.

99
Improve government incubation programs and consider
outsourcing to experienced private incubators
Startup Chile Theme-based incubators of Israel
In running its incubation program, Startup Chile differentiates its Government institution in charge: The Israel Innovation Authority.
participating startups through different stages of development Scheme: A national network of technological incubators that are managed by private entities selected
based on their Technology Readiness Level (TRL). through a competitive tender process.
Pre-acceleration (TRL 1-3): length of the program is 4 months Targeted startups: Those with disruptive technologies that are at the early TRL and have difficulties in
with a potential 3-month extension. Acceleration (TRL 4-6): raising private capital.
length of the program is 4 months with a potential 6-month
extension. Scale (TRL 7-9): length of the program is 12 months Non-financial incentives offered: A physical site and infrastructure, administrative support, guidance in
with a potential 2-month extension. technology and business aspects, legal advice, access to partner networks, and connections to potential
Infrastructure Support: This program provides office space to investors and customers (OECD, 2022).
startups at any stage and facilitates access to essential services
and technical resources through their sponsor organization. Second Chance Startup Package
Services: Monthly advisory team meetings, workshops on various
business services, pitch training, and support with visa applications Government institution in charge: Korea Institute of Startup & Entrepreneurship Development (KISED)
for foreign participants. Additionally, discounted rates are available Eligible participants: (pre) re-founders with constructive failure
for external services such as cloud storage, software, and legal
Services: Including analysis of the reasons for their previous failures, mentoring, and commercialization
advice (IEA,2022).
support (KISED, n.d.).
• As discussed earlier, successive incubation programs offer a significant advantage by providing startups with customized programs that address their unique needs at various stages of
development, avoiding overlapping programs without clear scaling plans. Taking inspiration from South Korea, the government can go a step further by establishing a dedicated program
for aspiring entrepreneurs who have experienced failure in the past. Entrepreneurship is a challenging journey and failure is an integral part of the process. By offering comprehensive
support to entrepreneurs throughout their journey, from the initial decision to embark on the entrepreneurial path to navigating challenges and even experiencing failure, the government
I N CU B AT I O N P R O G R A M S
plays a key role in creating a culture of innovation.

• Governments can explore the option of outsourcing their incubation programs to experienced private incubators and accelerators, particularly those specialized in supporting cleantech
startups in order to better support the specific needs of cleantech startups. This approach, similar to the model adopted in Israel where the government hires private organizations to
operate its national theme-based incubation programs, allows governments to tap into the expertise of private organizations and provide more effective guidance and support to startups.
• To increase awareness among cleantech startups, the government should also ensure transparent and widespread dissemination of information about existing incubation programs to
increase cleantech startup participation in government incubation programs.
100
Networking and mentoring programs should be tailored to meet
cleantech startup needs
Recommendation Start Up Energy Transition (SET), Germany
To improve the quality of mentoring programs, the government should focus on • Start Up Energy Transition (SET) facilitates connections between the top
enhancing program design and ensuring that mentors possess the necessary expertise 100 entrants, partners, companies, and potential investors through regular
and hands-on experience. This can be achieved by providing helpful materials communication channels such as calls, emails, and a LinkedIn group. It
and teaching resources specific to cleantech startups. Emphasizing in-depth, organizes matchmaking events where startups can interact with prospective
personalized, and one-on-one consultations will enable startups to receive tailored investors and industry partners.
guidance. Furthermore, establishing long-term mentoring relationships by matching • Additionally, SET includes dedicated interaction sessions between
mentors and mentees beyond the program duration will provide consistent and policymakers and selected startups at the Berlin Energy Transition
structured support for startups. Dialogue (BETD) to address regulatory challenges. In collaboration with the
Federal Ministry for Economic Affairs and Energy (BMWi), Dena launched
To optimize the impact of networking events, the government should establish SET Hub to create a forum for government, startups, and established
a regular schedule and announce timelines well in advance, allowing startups to players to address regulatory barriers.
prepare adequately. Additionally, providing opportunities for startups to participate
• Previously, SET also provided an online platform called SET Connect for
in international events can broaden their exposure to foreign investors and potential
entrepreneurs to engage with registered investors seeking investment
customers. Following the successful model of SET Germany, the government should
opportunities.
actively nurture and sustain networks through regular communication and Source: IEA 2022
follow-up events. Furthermore, the government can utilize online platforms to connect
startups with relevant stakeholders, fostering ongoing connections and collaborations.
Ignite Sweden
Drawing inspiration from the Ignite Sweden program, the government can leverage
networking and matchmaking events to facilitate connections between cleantech • Operated by Swedish Incubators & Science Parks (SISP) and funded
startups and both private and public sectors. These events not only create by the Swedish Energy Agency, this non-profit initiative offers startups a
N E T WO R K I N G A N D M E N TO R I N G
opportunities for startups to showcase their products but also generate demand for their valuable program by facilitating opportunities for concept validation, product
solutions. verification, pilot testing, and collaborative development by connecting

startups with customers from both the private and public sectors.
To improve government-startup engagement, it is essential to involve cleantech • Through tailored and pre-booked 20-minute meetings, over 6000 meetings
startups in public forums and policy discussions. This effort will provide startups have been facilitated, resulting in 453 collaborations. Participating startups
with a platform to voice their perspectives, share their insights, and contribute to shaping also receive coaching support.
policies that support their growth. Similarly, fostering collaborations with academic Source: Ignite Sweden
institutions can enhance research commercialization and knowledge exchange. Clean energy technology startups in Indonesia:
101
Establish a one-stop platform to provide comprehensive support
and services for cleantech startups
The government should provide business services either directly through
government bodies or by partnering with external entities specifically appointed
One Stop Platform - Virksomhedsguiden Portal by Denmark
for this purpose. The recommended types of services include:
Established in 2019 by the Danish Business Authority, this online portal
Build a one-stop platform and help desk for startup
serves as a comprehensive resource for entrepreneurs, providing 24/7
support: Considering the variety of incentives available and the
access to information and guidance on Danish business regulations and
support required by cleantech startups, the government should
support services. In conjunction with the six regional hubs, the portal
establish a unified platform that integrates all relevant information.
enhances visibility of various events, organizations, programs, opportunities,
Furthermore, a dedicated help desk staffed with officers who can
and projects specifically tailored for green entrepreneurs. The portal received
respond promptly should be established to provide guidance to
1.1 million visits in 2021.
startups on specific matters. This approach would enable startups
to seek assistance for complex and lengthy procedures related to Source: OECD, 2022.
specific areas of concern.
International Market Expansion Support by Denmark

Support cleantech startup expansion overseas: To support
the international expansion of cleantech startups and help them The Danish government’s Strategic Business Alliance Program brings
access foreign markets, the government should provide a range of together Danish exporters to exchange market information, skills, networks,
services. These services may include conducting market research and resources. Additionally, the Trade Council of the Ministry of Foreign
to identify opportunities, assisting startups in navigating foreign Affairs supports Danish firms in their export endeavors by providing market
regulations and compliance requirements, facilitating connections insights and facilitating connections with international businesses and trade
with overseas partners and investors, and providing support for associations across more than 70 countries.
skill development and resource enhancement to enhance their
Source: OECD, 2022.
competitiveness in global markets.
Assist and support startups in their business activities: Clean Energy International Incubation Centre, India
Taking inspiration from India, the government should provide a
comprehensive range of services to facilitate the smooth operations The center supports early-stage cleantech startups by providing various
B US I N E SS S E R V I C E S
of startups. These services may include support for marketing and services including branding and marketing support, intellectual property
branding activities, assistance with legal matters, and guidance in protection, legal guidance, secretarial assistance, compliance advisory, and
accounting and bookkeeping, among other relevant areas. accounting and bookkeeping services.
Source: IEA, 2022

102
Expand highly-skilled workforce and prepare aspiring founders
to support the cleantech sector
In addition to other non-financial incentives aimed at supporting the growth of
the cleantech startup ecosystem, entrepreneurial and STEM education and From school to the world of work:
vocational training play a crucial role in preparing skilled workers and nurturing the power of vocational training, Germany
potential founders. Considering the current state of the ecosystem, our
recommendations on this matter: The majority of Germany’s highly skilled workforce has received
• Strengthen STEM education: Focus on expanding the highly skilled their training and education through the dual system of vocational
workforce necessary for the cleantech industry by promoting STEM education and training (VET). The VET program is the chosen
education to students and improving current curriculum to better align with path for approximately half a million apprentices in Germany each year,
evolving demand from the emerging, cleantech sector. contributing to a total of 1.3 million apprentices in training annually.
• Enhance Vocational Education and Training (VET): Invest in vocational
education and training programs that specifically cater to the needs of the Germany’s dual-track VET program combines classroom
cleantech sector. Collaborate with industry partners to develop curriculum study at vocational schools with on-the-job work experience.
and provide practical training opportunities for students to gain hands-on Apprentices split their time between theoretical learning and
experience in clean energy technologies. Encourage collaboration between practical training, with approximately 60% of their time spent in the
academic institutions and industry players to bridge the gap between workplace and 40% in the classroom.
theoretical knowledge and practical application.
• Collaboration with companies: Vocational schools in Germany
• Develop entrepreneurial education programs nationwide: These
collaborate with approximately 430,000 companies, and over 80% of
programs should have more contemporary course content and teaching
large companies employ apprentices. Apprentices in host companies
methods, updated entrepreneurial facilities such as business community
receive a monthly salary, which starts at an average of nearly €800 and
centers and incubators, and accessible funding for student entrepreneurial
increases each year of their apprenticeship.
projects like startups, SMEs, or technological ventures (Amalia & Korflesch,
2021). There should also be strategies to facilitate the commercialization of
scientific findings into economic products. • Energiewende apprenticeship: More than 60 percent of firms in the
renewable energy sector provide opportunities for trainee positions
• Implement regular adjustments and modifications of educational
through the VET system. There are 40 different types of Energiewende
programs to better align with the evolving demands of the cleantech
(energy transition)-related skilled professionals trained through the
sector: There should be a system in place to facilitate communication

VET, including electrical engineers, industrial engineers, systems
between the private sector and the government, enabling the private sector
mechanics, automotive mechanics, automotive engineers, and many
to inform its evolving needs. The government should proactively collect
others.
E D U C AT I O N
feedback from businesses on a regular basis. This feedback should inform

regular updates to the curricula of existing programs, ensuring that they
Source: Hockenos, 2018, Hockenos, 2017.
remain aligned with emerging technologies and industries.

103
Mandate Green Public Procurement to drive the demand
for cleantech products
Green Public Procurement and Thai
Our Recommendation
Green Directory, Thailand
The government’s introduction of voluntary Green Public Procurement (GPP)
GPP was introduced in Thailand in 2012 and integrated into the 20-
is a positive step towards integrating environmental and sustainability factors
year National Strategy (2018–2037). Additionally, the Pollution Control
into public procurement practices, thereby driving demand for cleantech
Department (PCD), with support from the European Union (EU) SWITCH-
startups. To further enhance its effectiveness, the government should
Asia SCP Facility, developed the National Action Plan on Green Public
consider the following recommendations:
Procurement Promotion (2021–2027), which was endorsed in May 2022.
The government should consider making Green Public Procurement
(GPP) mandatory, similar to its approach of prioritizing domestic In August 2022, Thailand launched the Thai Green Directory in collaboration
products through mandatory procurement of goods and services with with EU SWITCH-Asia SCP. This platform compiles environmentally friendly
Local Content Requirements (LCR). This would ensure the widespread products & services and facilitates communication between producers and
adoption of GPP practices and further drive demand for cleantech consumers. Currently, the Thai Green Directory features 18 eco-labels from
solutions. 11 organizations and includes over 232,370 listed items in its database.
Source: (Switch Asia SCP Facility, n.d. Thai Green Directory, n.d.)
Expand the number of products and services classified as green by
increasing the availability of eco-label classifications.
Environmental Consideration in Public
Establish a dedicated green products directory that includes a
Procurement, The Netherland
comprehensive list of certified green products.
The Dutch Public Infrastructure Authority considers both price and quality
Incorporate additional environmental parameters in the evaluation
when awarding contracts for construction and maintenance projects.
criteria for bid selection (e.g. the use of sustainable materials, energy
Environmental quality is evaluated in two ways:
efficiency, and potential carbon emissions).
1. The company’s efforts to reduce CO2 emissions caused by their activities
Raise awareness among stakeholders involved in green public and processes, assessed using the “CO2 performance ladder,” which
procurement, including ministries/agencies and procurement auditors, rates firms on a scale from 1 to 5.
about the significance of GPP and educating them on the potential
2. The environmental performance of the infrastructure design which is
G R E E N P U B L I C P R O CU R E M E N T
costs incurred by using environmentally unfriendly products/services

is essential. For instance, highlighting the financial implications of assessed using Life Cycle Costing (LCC). The assessment utilizes
using gasoline-powered vehicles versus electric vehicles can help the “Dubocalc” tool to evaluate and assign monetary value to the
illustrate the economic advantages of green alternatives. Implementing environmental impacts of the design, especially materials and energy
environmental parameters as KPIs for ministries/agencies could also usage throughout its entire lifespan.
be effective in encouraging them to shift to green products. Source: Chiappinelli and Zipperer, 2017

104
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Clean Energy Technology Startups in Indonesia How The Goverment Can Help The Ecosystem

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Clean Energy Technology Startups in Indonesia How The Goverment Can Help The Ecosystem

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Clean energy technology

Copyright © 2023 New Energy Nexus Indonesia,

Muhammad Rayhan Alghifari

Clean energy technology startups in Indonesia:

While governments worldwide have recognized the importance of fostering a

The time for action is now.

Clean energy technology startups in Indonesia:

Clean energy technology startups in Indonesia:

Clean energy technology startups in Indonesia:

Clean energy technology startups in Indonesia:

• The energy transition in Indonesia is progressing slowly as renewables only represented 50

• Globally, the participation of cleantech startups in energy transitions is on the rise.

• Among the 42 still-operating cleantech startups, approximately 64% claim to be at

Venture Number of Portfolio in

Fintech, healthcare, logistics, agritech, e-commerce, $100K-$5M (early)

Alpha JWC Pre-Seed, Seed, Pre-Series A, Series A, Series B,

Kejora Seed, Pre-Series A, Series A, Series B, above Series $250K-$3M (early)

Clean energy technology startups in Indonesia:

Clean energy technology startups in Indonesia:

Clean energy technology startups in Indonesia:

Clean energy technology startups in Indonesia:

Clean energy technology startups in Indonesia:

Pain Points Recommendations

The super tax deduction, designed to stimulate R&D and vocational

Incentivize cleantech startups in the manufacturing and service-provider

sectors to establish supply chain and foster the expansion of the

Although EV subsidies have been implemented, they have not

Clean energy technology startups in Indonesia:

Pain Points Recommendations

University incubators are struggling financially, leading to poor

Despite the potential benefits they offer to the cleantech startup

scheme with private incubators and accelerators.

Cleantech startups face challenges in innovating due to limited access

Establishing a business, hiring foreign talent, and navigating

• Provide easy access to research facilities and office space by

Poor program design (a lack of continuity and differentiation) and poor

Clean energy technology startups in Indonesia:

Networking and mentoring programs are available but not specifically

• A lack of tailored business services specifically design for

The adoption of Green Public Procurement has the potential to

Clean energy technology startups in Indonesia:

At minimum, such a roadmap should include the following key elements:

• Research & Development (R&D) support

Clean energy technology startups in Indonesia:

Energy transition in Indonesia 21

The ecosystem of clean energy technology startups in Indonesia 28

Government role in addressing challenges and gaps (Recommendations) 78

Clean energy technology startups in Indonesia:

~32% Indonesia raised its climate goals in 2022 with an

with the target of limiting global

warming to 1.5 degrees Celsius

Investment in New & Renewable Energy

Clean energy technology startups in Indonesia:

2006 2010 2015 2018

2023 2022 2021 2019

days for the case of with/without PJBL adjustments

*Source: IESR, 2021. **Source: IESR, 2022

Clean energy technology startups in Indonesia:

Emerging Cleantech Ecosystem in Indonesia

for 61 customers (Xurya, 2022) The startup offers its customers

Industrial & Building Sector

Clean energy technology startups in Indonesia:

01. Cleantech Startups