Indonesia’s expansion of clean power can spur growth and equality

Indonesia's electricity sector remains heavily dependent on fossil fuels, with coal contributing 62% of generation in 2023. The report highlights a risk of stranded assets if new coal plants are built, as improving existing plant efficiency could lead to a 42 TWh surplus by 2030. It advocates for the Just Energy Transition Partnership (JETP) targets, which aim for a 44% renewable share by 2030. Specifically, the report argues for shifting renewable investments toward coal-producing provinces like East Kalimantan, South Kalimantan, and South Sumatra to mitigate job losses and economic decline, estimating that expanding solar projects in these areas could create 96,000 high-skilled jobs and attract $9.4 billion USD in investment.

• Fossil fuels dominate Indonesia's electricity generation, with coal specifically contributing 62% (217 TWh) in 2023. Power sector emissions rose by 86 million tonnes of CO2 (MtCO2) between 2013 and 2023, driven by significant coal capacity buildup.
• Indonesia faces a high risk of stranded assets if it continues building new coal plants. If coal power plant capacity factors are improved to 64% by 2030, electricity generation will likely exceed demand by 42 TWh.
• The Just Energy Transition Partnership (JETP) targets a renewable energy share of 44% by 2030 and 66% by 2035. To meet the 2030 target, Indonesia would need to add 8.9 GW of solar and 2.9 GW of wind annually beyond the current RUPTL targets.
• Coal-producing regions—specifically East Kalimantan, South Kalimantan, and South Sumatra—are highly vulnerable to the energy transition. In East Kalimantan, coal contributes over 44% of the gross regional domestic product (GRDP), and the province could see an economic decline of 65% if mining and oil and gas sectors were completely depleted.
• Strategic allocation of renewable energy projects in coal-producing provinces can mitigate economic risks. Tapping into 2.7 GW of existing renewable pipelines and adding 5.8 GW of solar projects could attract over $9.4 billion USD in investment and create 96,000 high-skilled jobs.
• Coal mine methane (CMM) represents a significant but overlooked emission source in producing regions. In 2022, CMM emissions in East Kalimantan, South Kalimantan, and South Sumatra were estimated at 516 kilotonnes of CH4, equivalent to approximately 15.4 million tonnes of CO2e, yet these are not included in subnational mitigation plans.

APA

Ember (2024). Indonesia’s expansion of clean power can spur growth and equality. https://ember-energy.org/latest-insights/indonesias-expansion-of-clean-power-can-spur-growth-and-equality

Chicago

Ember. Indonesia’s expansion of clean power can spur growth and equality. 2024. https://ember-energy.org/latest-insights/indonesias-expansion-of-clean-power-can-spur-growth-and-equality.

Wikipedia

{{cite report |author=Ember |title=Indonesia’s expansion of clean power can spur growth and equality |date=14 August 2024 |url=https://ember-energy.org/latest-insights/indonesias-expansion-of-clean-power-can-spur-growth-and-equality |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2024indonesias, author = {{Ember}}, title = {{Indonesia’s expansion of clean power can spur growth and equality}}, institution = {Ember}, year = {2024}, month = aug, url = {https://ember-energy.org/latest-insights/indonesias-expansion-of-clean-power-can-spur-growth-and-equality}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }