Despite being blessed with abundant renewable energy (RE) resources (3,716 GW), Indonesia’s share of RE in the total primary energy supply was only 12.3% in 2022 (or about 0.3% of the potential resources). This is less than half of the government target of 25% by 2025. At the same time, the 2021 updated Indonesian NDC suggests the energy sector will dominate the GHG emissions in 2030 (58%), calling for urgent action to speed up RE expansion. Indonesia has further announced a coal phase down: Presidential Regulation 112/2022 specifies the ambition to phase out coal-fired power plants (CFPPs) and boost renewable energy (RE) uptake.

With Indonesia’s ambition to achieve NZE by 2060 or earlier, and peak power sector emissions by 2030,  phasing out fossil fuels and enhancing the use of RE becomes essential to move towards a sustainable energy transition.

While the majority (95%) of the Indonesian public considers RE expansion as a “top priority” or “important policy”, energy affordability and socio-economic impacts of a fossil fuel phase out in fossil-dependent regions and sectors are dominant factors for policymakers when defining suitable energy transition pathways. Identifying and promoting the innovative business models and enabling factors for affordable and clean energy is vital to creating society-wide buy-in while keeping Indonesia on an economic growth pathway. This needs to be accompanied with support to fossil-dependent regions and sectors, as well as the vulnerable groups in dealing with impacts from the transition. A strong emphasis needs to be put on inclusive and evidence-based policy-making processes.