Fossil Fuels Phase out & RE Expansion
"Transitioning to Tomorrow: Energising Indonesia's Renewable Future"
Indonesia commits to a bold step away from fossil fuels, tapping into its vast renewable energy potential to power a sustainable future for all.
Mission Statement
GIZ supports Indonesia in increasing the share of renewable energy by gaining public acceptance for a fossil fuel phase-out and building innovative solutions for the shift away from fossil fuels towards affordable and clean energy for all.
Why?
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.
What?
With whom?
How?
- Policy advisory services to MEMR, Bappenas, and fossil-dependent regions to enhance inclusive and evidence-based policymaking in support of national and regional energy transition and economic diversification.
- Technical advisory services to private sectors for the adoption of RE solutions to replace fossil fuel consumption.
- Facilitation of knowledge management for innovative solutions and enabling factors for affordable and clean energy expansion.
- Capacity development for vulnerable groups to allow them to grow in the transition towards clean energy and sustainable economy.
When?
GIZ supports the targets outlined by the GoI towards NZE 2060, and the JETP by 2030. This entails the following success indicators:
- Number of commercially adopted innovative business models and solutions on RE and other green economic activities
- Share of non-fossil production in provincial GDP of fossil-dependent regions (%)
- Addition of RE capacities and related GHG emission reductions
Who?
- Topic Leads: Ade Cahyat, Ardian Candraputra
- Thematic Experts: Nafisa Iskandar (just transition), Tammya Purnomo (just transition, decarbonisation), Satrio Swandiko Prillianto (RE Expansion)