Greenflation causes Indonesia and Vietnam to backtrack on renewables

In Malaysia, a weak currency squeezes financing for decarbonation efforts

20240322 Indonesia EV

Officers prepare an EV charging unit in Bali, Indonesia, in 2022. The rising costs for metals and minerals due to soaring demand for EVs have put Southeast Asia in a greenflation bind. (Antara Foto via Reuters)

ERWIDA MAULIA, NORMAN GOH and LIEN HOANG, Nikkei staff writers

JAKARTA/KUALA LUMPUR/HO CHI MINH CITY -- Indonesia's recent lowering of its renewable energy targets highlights Southeast Asia's decarbonization challenges, with inflation and financing concerns growing across the region, from Malaysia to Vietnam.

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