Still a long way to go - Energy security and green growth in Indonesia

This policy brief by Clingendael examines the tension between Indonesia's rapid energy demand growth and the need for sustainable, green growth solutions, highlighting structural political challenges and emerging opportunities for a climate-compatible energy pathway.

• Indonesia faces a rapid increase in energy demand that is projected to be unsustainable economically and environmentally. Total primary energy demand is expected to more than triple by 2030, while electricity demand is projected to quadruple and transport fuel demand is expected to increase more than threefold. This trajectory is marked by a higher reliance on energy imports, deteriorating urban air quality and mobility, loss of biodiversity and forests, and a sharp increase in greenhouse gas emissions.
• Structural issues within Indonesian governance and politics hinder the adoption of green growth solutions, making it difficult to move away from 'business as usual' fossil fuel-based responses to energy security. Implementing sustainable solutions typically requires long-term policies and large-scale investments, which are often difficult to achieve within the current political system.
• Three emerging factors may help align energy security with green growth in Indonesia: the need for improved governance and coordinated policymaking to reduce emissions, the potential for Foreign Direct Investment (FDI) from international institutional investors seeking climate-compatible assets, and mobilization from the private sector and grass-roots levels as businesses recognize sustainability as a way to reduce costs and open new markets.

APA

Climate and Development Knowledge Network (2017). Still a long way to go - Energy security and green growth in Indonesia. https://cdkn.org/resource/policy-brief-still-long-way-go-energy-security-green-growth-indonesia

Chicago

Climate and Development Knowledge Network. Still a long way to go - Energy security and green growth in Indonesia. 2017. https://cdkn.org/resource/policy-brief-still-long-way-go-energy-security-green-growth-indonesia.

Wikipedia

{{cite report |author=Climate and Development Knowledge Network |title=Still a long way to go - Energy security and green growth in Indonesia |date=22 February 2017 |url=https://cdkn.org/resource/policy-brief-still-long-way-go-energy-security-green-growth-indonesia |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climateanddevelopmentknowledgenetwork2017still, author = {{Climate and Development Knowledge Network}}, title = {{Still a long way to go - Energy security and green growth in Indonesia}}, institution = {Climate and Development Knowledge Network}, year = {2017}, month = feb, url = {https://cdkn.org/resource/policy-brief-still-long-way-go-energy-security-green-growth-indonesia}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }