How can Indonesia's energy transition be made more equitable and 'just'?

Indonesia’s energy transition can be made more equitable and “just” by repurposing coal projects into new more sustainable use, and allocating more renewable projects in most impacted provinces – thus creating opportunities for coal-transition impacted communities, such as job creation and new skill sets.

Why is Indonesia rethinking its energy strategy?

The current geopolitical tension has made countries rethink their energy strategies, while volatile energy prices have driven inflation in food prices. Indonesia is projected to be among the top-five largest economies by 2045, with the population reaching approximately 324 million people.

Can Indonesia achieve net-zero energy ambitions?

As a result, Indonesia’s climate commitments in the energy sector may progress slower than previously anticipated. However, the longer the country remains dependent on fossil fuels, the more difficult it will be for its leaders to meet the net-zero ambitions. Evidence suggests that Indonesia’s energy transition should be well under way.

How much electricity does Indonesia generate from fossil fuels?

Electricity generation from fossil fuels has increased from 190 TWh in 2013 to 285 TWh in 2023, mainly driven by coal’s prominent role in Indonesia’s energy strategy and coal capacity buildup under the electricity infrastructure development plan. During the same period, renewables generation increased from 36 TWh to 65 TWh.

Is Indonesia's Green-Energy Transition a serious business?

Indonesia’s Green-Energy Transition Is Serious Business In a coauthored article for Nikkei Asia, BCG’s Haikal Siregar writes about Indonesia’s 2060 net-zero targets, which will require an estimated $200 billion in financing each year over the course of the next decade.