Market Size
The Indonesia Renewable Energy Certificate Market reached US$ 9.74 million in 2025 and is expected to reach US$ 15.01 million in 2033, growing at a CAGR of 4.9% during the forecast period (2026–2033).
Indonesia holds a significant share in the renewable energy certificate (REC) market due to its abundant renewable energy resources, growing energy demand and supportive government policies. The country has vast potential in geothermal, solar, wind and hydropower, making it a key player in the region’s renewable energy transition.
Indonesia has pledged to reduce carbon emissions by 29% from business-as-usual levels by 2030 as part of its commitment to the Paris Agreement. This goal aligns with the country’s broader efforts to accelerate renewable energy adoption, enhance sustainability and transition towards a low-carbon economy and drive the REC market.
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Market Scope
| Metrics | Details | |
| By Type | I-REC, TIGR | |
| By Energy Source | Solar RECs, Wind RECs, Hydro RECs, Biomass, Geothermal | |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth |
Market Dynamics
Increasing Corporate Demand for Clean Energy
One of the key drivers of Indonesia's renewable energy certificate (REC) market is the increasing corporate demand for clean energy to meet sustainability commitments and net-zero targets. Multinational corporations (MNCs) and domestic businesses are increasingly aligning with global initiatives like RE100, Science-Based Targets (SBTi), and ESG (Environmental, Social, and Governance) compliance, which require them to source a significant portion of their electricity from renewable sources.
Limited Availability
One of the major restraints in Indonesia's renewable energy certificate (REC) market is the limited availability of certified renewable energy sources. While Indonesia has significant renewable energy potential, including geothermal, solar, and hydropower, the country's energy mix remains dominated by coal, which accounts for over 60% of total electricity generation. The slow pace of renewable energy project development, coupled with regulatory hurdles and insufficient grid infrastructure to support large-scale renewable integration, restricts the availability of RECs.
For example, PLN’s Green Energy Certificate (REC) program has seen rising demand from corporations, but the supply of RECs remains constrained due to delays in renewable energy project approvals and the lack of standardized verification mechanisms. This mismatch between supply and demand results in higher REC prices, making it less attractive for small and medium-sized enterprises (SMEs) and local businesses to participate.
Market Segment Analysis
The Indonesia renewable energy certificate market is segmented based on type and energy source.
I-RECs are Expected to Drive the Segment Growth.
The I-REC Standard provides a robust framework for issuing, trading and redeeming renewable energy certificates internationally. In the Asia-Pacific, this system has gained traction as countries seek to meet their renewable energy targets and corporations aim to fulfill sustainability commitments. Multinational corporations (MNCs) operating in Indonesia, particularly in sectors like manufacturing, technology, and retail, are actively seeking renewable energy solutions to align with their ESG (Environmental, Social, and Governance) targets.
Many companies, including those under the RE100 initiative, require credible and verifiable renewable energy procurement options, making I-RECs an attractive solution. For example, Unilever Indonesia has committed to sourcing 100% renewable electricity for its operations. To achieve this, the company has started purchasing I-RECs to offset its carbon footprint and meet its sustainability targets.
Pricing Analysis
The pricing of International Renewable Energy Certificates (I-RECs) in Indonesia is influenced by factors such as renewable energy supply availability, corporate demand, government policies, and global REC price trends. Compared to other APAC markets, Indonesia’s I-REC prices remain relatively competitive but are gradually increasing due to higher corporate sustainability commitments and growing demand from multinational companies looking to decarbonize their operations.
The cost of an I-REC in Indonesia varies depending on the source of renewable energy (solar, wind, hydro, or biomass) and the volume of purchases. As of recent trends, I-REC prices in Indonesia solar RECs typically range between US$ 3.12 per MWh in 2023 to US$ 4.45 per MWh in 2025, with premium pricing for certificates linked to new renewable energy projects or those with additionality claims.
Major Players
The major players in the market include Perusahaan Listrik Negara (PLN), Medco Power Indonesia, Pertamina NRE, I-REC Standard, Adaro Energy and Barito Pacific Energy.
Recent Developments
In March 2026, Perusahaan Listrik Negara (PLN) expanded its REC offerings to support corporate sustainability goals in Indonesia. The initiative focuses on increasing access to certified renewable electricity. This supports businesses aiming for carbon neutrality.
In February 2026, I-REC Standard Foundation strengthened its presence in Indonesia by enhancing certification frameworks and verification processes. The development improves transparency and credibility. This supports growing demand for renewable energy tracking.
In January 2026, Pertamina New & Renewable Energy (Pertamina NRE) increased participation in the REC market through renewable project integration. The focus is on expanding green energy portfolios. This supports Indonesia’s energy transition goals.
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Target Audience 2026
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