Achieving a Just Energy Transition in Indonesia

The document argues that Indonesia's heavy reliance on coal and oil and gas creates significant social and economic risks that necessitate a 'just transition' framework. It highlights a lack of institutionalized social dialogue and the continued use of fossil fuel subsidies and recovery funding for the fossil fuel sector. The author recommends institutionalizing tripartite social dialogue, diversifying the economy in fossil-fuel-dependent regions, and utilizing state-owned enterprises to drive a green recovery through conditionalities.

• Indonesia's economy is heavily dependent on fossil fuels, with coal-fired power plants providing over 60% of total electricity consumption and the coal sector employing at least 100,000 workers as of 2018.
• Despite international commitments, Indonesia continues to expand coal capacity, including a 35-gigawatt (GW) program and a Fast Track Programme adding 7 GW, while planning new plants to provide 13.8 GW by 2030.
• The concept of a just transition is not yet institutionalized in Indonesia; the 2019 Low Carbon Development plan contains only one reference to it, and tripartite social dialogue between government, workers, and employers has not been formalized.
• Indonesia's COVID-19 recovery spending largely favored fossil fuels over green diversification, with the fossil fuel industry receiving IDR 108.5 trillion (USD 7.5 billion) in 2020, and state-owned enterprises PT Pertamina and PT PLN receiving IDR 37.8 trillion and IDR 45.5 trillion respectively.
• Fossil fuel subsidies in Indonesia are regressive and primarily benefit the wealthy, with an estimated annual cost of IDR 97.4 trillion.
• BAPPENAS estimates that pursuing a net-zero by 2050 plan could create 1.8–2.2 million green jobs in the energy, EVs, land restoration, and waste sectors by 2030.

APA

Christensen, L. T., & Suharsono, A. (2022). Achieving a Just Energy Transition in Indonesia. International Institute for Sustainable Development. https://www.iisd.org/system/files/2022-07/achieving-just-transition-indonesia.pdf

Chicago

Christensen, Lasse Toft, and Anissa Suharsono. Achieving a Just Energy Transition in Indonesia. International Institute for Sustainable Development, 2022. https://www.iisd.org/system/files/2022-07/achieving-just-transition-indonesia.pdf.

Wikipedia

{{cite report |last1=Christensen |first1=Lasse Toft |last2=Suharsono |first2=Anissa |title=Achieving a Just Energy Transition in Indonesia |publisher=International Institute for Sustainable Development |date=July 2022 |url=https://www.iisd.org/system/files/2022-07/achieving-just-transition-indonesia.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{christensen2022achieving, author = {Christensen, Lasse Toft and Suharsono, Anissa}, title = {{Achieving a Just Energy Transition in Indonesia}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = jul, url = {https://www.iisd.org/system/files/2022-07/achieving-just-transition-indonesia.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }