Supporting Indonesia’s Energy Transition
Indonesia’s commitment to the energy transition is part of its Golden Indonesia 2045 programme to become an advanced country. President Prabowo Subianto has laid out an ambitious vision for this transition: net-zero emissions (NZE) by 2060, 75GW of new renewable energy capacity, and the phasing out of coal by 2040.. This bold move highlights the nation’s commitment to combating climate change and transitioning to a more sustainable energy future. However, such a transition requires not only technical innovation but also strong partnerships to ensure that no one is left behind, and that the transformation is both efficient and inclusive. This is where the German-Indonesian Energy Cooperation comes into play. It was established to consolidate capacities among key stakeholders, provide essential technical assistance, and ensure the successful implementation of energy transition initiatives in Indonesia.
Germany has long been a valued partner in Indonesia’s energy sector, with a history of over 30 years of cooperation. The partnership began with rural electrification programs and has since evolved into a comprehensive collaboration that supports a range of energy transition initiatives. The German technical and financial cooperation now covers a broad portfolio, addressing key areas such as public infrastructure projects, sector reform financing, policy advice on renewable energies and carbon pricing, technology cooperation and innovation, and the development of quality infrastructure in the solar energy sector. Germany also plays a critical role in vocational education and training, ensuring competence development and creating employment opportunities within the energy sector. Through these efforts, Germany remains a crucial partner in driving Indonesia’s energy transition forward by focusing key areas below.