DI supported JICA in Indonesia
• Client: JICA
• Country: Indonesia
• Industry: Energy
Background:
In 2022, the IEA published An Energy Sector Roadmap to Net Zero Emissions in Indonesia. This strategy emphasizes the critical role of low-carbon and carbon-free energy sources, such as hydrogen and ammonia, in achieving carbon neutrality by 2060. It envisions that the development of a hydrogen-based society in Indonesia will significantly contribute to the decarbonization of the global energy system.
To achieve net-zero emissions, aligning government policies with the strategies of both Indonesian and foreign companies was identified as crucial. Additionally, clarifying the necessary international collaborations to foster the growth of Indonesia’s domestic industry was deemed essential.
Against this backdrop, the Government of Japan, represented by JICA, partnered with DI to explore relevant support for both public and private sectors in creating a global hydrogen market. This initiative utilizes an “industry-producing” approach to foster market development by envisioning an ideal state, promoting rule-making, and involving various stakeholders across public and private sectors for hydrogen market creation in Indonesia.
Image: DI’s scope of work in the project
Support Overview:
This project aims to examine the role of Private Sector Engagement (PSE) in Indonesia’s emerging energy sector.
To achieve this, we began by analyzing existing initiatives in Indonesia to understand the overall landscape and identify barriers to industrialization. Our analysis focused on two key dimensions:
Next, we mapped the roles and efforts of key players within the sector. This involved analyzing their positioning, scale, targets, and strategies, as well as identifying the types of support required to address gaps.
We also conducted case studies to explore various public-private collaboration models. These included examples from Japan, past JICA projects, and initiatives by other international donors to understand effective approaches to partnership.
Building on these analyses, we held interviews with public and private stakeholders in Japan and Indonesia. These discussions helped us:
Finally, we synthesized the findings to define an ideal state for Indonesia’s energy sector. By comparing this vision with the current state, we identified gaps and developed a proposal for collaboration between JICA and the private sector. This proposal outlines role divisions, actionable steps for JICA, and strategies to integrate private sector engagement into its initiatives.
Other support cases
Several publications on our work can be found here.
Dream Incubator Inc. and Nippon Koei Co., Ltd. proudly join the Japan International Cooperation Agency (“JICA”) as its consultants to work on data collection and fundamental research on matching demand of developing countries with private sector technologies for achieving carbon neutrality, a global mega-trend that is now emerging in developing economies.
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