JET (Innovation Regions for a Just Energy Transition) – Indonesia Chapter
Status
Ongoing
Overall Project Duration
2023–2026
Commissioner
Federal Ministry for Economic Affairs and Climate Action, International Climate Initiative
Political Partner
Ministry of National Development Planning (Bappenas) – Directorate of Mineral Energy Resources and Mining
Cooperation Partners
International Labour Organisation (ILO), Australian People for Health, Education and Development Abroad (APHEDA), Climate Action Network (CAN), and Wuppertal Institute (WI) (consortium included)
Implementing Organization
GIZ
Project page on organization website
Project Documents and Links
Background
Indonesia, like many countries, is committing to ambitious climate goals including achieving net-zero emissions and phasing out coal power. However, regions such as East Kalimantan and South Sumatra, which have long relied on coal as a major economic driver, face complex challenges in this transition. These provinces contribute substantially to local GDP through coal mining and rely heavily on royalties from coal to fund public services.
IKI-JET was launched to ensure that the transition away from coal is not only climate-conscious but also socially just and economically inclusive. The project acknowledges the socioeconomic risks associated with declining coal demand—particularly for workers and communities whose livelihoods are directly tied to the sector. Through inclusive planning, the project seeks to transform these coal-dependent areas into sustainable economies with long-term, decent employment and a healthier environment.
The project builds on global and national trends: globally, more than 95% of coal-consuming countries have set net-zero targets, while nationally, Indonesia has enacted Presidential Regulation 112/2022 on coal retirement. IKI-JET operates within this momentum, helping local governments and communities anticipate change and develop strategies that align with both national policy and local development needs. Additionally, it highlights the crucial role of social protection, labor reskilling, and inclusive policy to ensure no one is left behind during this energy shift.
Project Approach
IKI-JET implements a multi-layered and inclusive planning process to ensure that the coal transition is just, participatory, and forward-looking. Central to this effort is the establishment of Regional Consultation Forums (RCFs), which serve as structured platforms for dialogue between government, civil society, private sector, labor unions, and local communities. These forums allow stakeholders to jointly discuss the challenges and opportunities of the transition and collaboratively propose policy solutions.
The project further provides targeted policy advisory services that support the development of regional strategies, integrating gender-responsive planning, green job creation, and economic diversification. IKI-JET also works to identify and promote transformational projects that demonstrate tangible benefits, such as new renewable energy business models or retraining programs for former coal workers.
Capacity development is a key component of the approach. IKI-JET delivers trainings and workshops for national and local government officials, community leaders, and other stakeholders to enhance their understanding of just energy transition principles and tools. These sessions aim to equip participants with the skills and perspectives necessary to drive policy change and manage socio-economic shifts effectively.
Additionally, the project actively supports the integration of just energy transition elements into local and long-term development planning documents. By embedding these concepts into provincial strategies, IKI-JET ensures that planning is forward-compatible with decarbonization targets while remaining grounded in local realities.
Desired Impacts
IKI-JET aims to achieve structural transformation in Indonesia’s coal regions by embedding just transition principles into the planning and governance of economic change. One of its early successes is the initiation of Regional Consultation Forums in both East Kalimantan and South Sumatra, which are being formalized to serve as long-term institutional mechanisms for inclusive policy dialogue.
Through the project’s efforts, over 150 individuals—including policymakers, civil society representatives, labor union members, and journalists—have increased their capacity and awareness on just energy transition issues. This improved understanding facilitates more effective and collaborative planning at both provincial and national levels.
The project has also supported the development of six pilot business models focused on utilizing biomethane as a diesel and LPG substitute. These models are designed to catalyze new green economies and reduce dependence on coal. Furthermore, policy recommendations emerging from IKI-JET’s workshops and consultations have been shared with provincial governments, influencing revisions to local development strategies and energy transition roadmaps.
By building technical knowledge, fostering inclusive governance, and proposing viable economic alternatives, IKI-JET contributes to a fair and sustainable future for Indonesia’s coal regions—turning potential economic disruption into an opportunity for green growth and social advancement.
Project Activity Areas (Outputs)
Informed social dialogue and stakeholder engagement on just energy transition in coal regions takes place in Regional Consultation Forums
Transformational measures to support the JET of coal regions are rolled out
Policy advice to improve the policy framework for just energy transition is fed into respective policy processes.
Project Publications
Project Updates
Tools
SEA Information Platform for the Energy Transition (SIPET)
The Southeast Asia Information Platform for Energy Transition (SIPET) is a one-stop platform for information and knowledge exchange about the energy transition in the region. SIPET aims to be a central launch pad for energy transition stake holders to facilitate dialogue and promote coordination in the Southeast Asia power sector.
Bio DB
BioDB is a useful website for providing general information, encouraging discussion and conversation on the topic of bioenergy from agro-industrial waste. The data and information presented were collected by the Strategic Exploration of Economic Mitigation Potentials through Renewables (ExploRE) project, a project funded by the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), Federal Republic of Germany, in collaboration with the Ministry of Energy and Mineral Resources (ESDM) of the Republic of Indonesia, and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
IKI JET
The global energy transition away from coal to renewable energy is threatening local livelihoods, economic activities and jobs, but also holding opportunities for sustainable, low carbon development. The project aims at supporting key stakeholder of coal regions to plan for and implement regional just energy transition pathways away from coal and towards a low-carbon energy system. Focusing on the regional economic transformations, the project works with government, industry, unions, communities, civil society, and academia. It supports interregional peer-to-peer exchange, learning, and policy dialogue in an international network and information sharing via a knowledge hub. In Indonesia, it supports the development of specific transition plans in two coal regions. In Colombia, it supports the development of the concept and framework for energy communities and the implementation of just and inclusive energy communities in César and la Guajira.
CASE for Southeast Asia
The “CASE for Southeast Asia” website is dedicated to the promotion of clean, affordable, and secure energy transitions across Southeast Asia. The website focuses on the provision of resources, the conducting of research, and the facilitation of collaborative projects in countries such as Indonesia, Thailand, the Philippines, and Vietnam, with the aim of supporting energy transition efforts. The platform highlights the challenges and opportunities in the region’s energy sector, while sharing knowledge, best practices, and policy recommendations aimed at advancing the transition to renewable energy and sustainable development
Contact
Project Address
De Ritz Building, Floor 3A
Jl. HOS Cokroaminoto No. 91, DKI Jakarta, Indonesia
Ade Cahyat
Implementation Manager IKI JET Indonesia
