Green FDI and Energy Transition in Indonesia: Masdar's Role in Reducing Greenhouse Gas Emissions
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Abstract
Renewable energy development has become a strategic agenda for Indonesia in reducing dependence on fossil fuels and promoting sustainable development. Limited domestic financial and technological capacity has positioned green foreign direct investment as a crucial instrument in the national energy transition. This article aims to analyze the role of Green Foreign Direct Investment through the contribution of Abu Dhabi Future Energy Company (Masdar) in Indonesia’s renewable energy sector from 2020 to 2025. Employing a qualitative method with a case study approach, this research draws on policy documents, company reports, and relevant academic literature. The findings reveal that Masdar has played a significant role through investment in the Cirata Floating Solar Power Plant project, technology transfer, and institutional cooperation with domestic actors. However, regulatory challenges and social equity issues remain. This study concludes that Masdar’s contribution is strategic for Indonesia’s energy transition, yet requires stronger policy support to ensure long-term sustainability.
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