Initiating a fair and inclusive energy transition in Indonesia
Summary
The analysis examines the replacement of 3.4GW of coal capacity at Suralaya with solar PV, noting that while a four-year replacement is possible, a lack of concerted effort could cause delays of 7-10 years. The document emphasizes that the scale of benefits depends on the speed of implementation and requires coordinated action from the government, PLN, and banks, alongside international support aligned with domestic efforts.
Key insights
- Replacing 3.4GW of coal units at Suralaya with solar PV can drive greater prosperity and an inclusive transition, though the magnitude of benefits is time-dependent, increasing with an earlier and faster replacement.
- While a full replacement of the Suralaya units within four years is feasible, a lack of coordinated effort could result in a delay of 7 to 10 years.
- To realize the transition, Indonesia requires improvements in permitting and spatial planning, a predictable medium-term pathway for clean energy, and stable policies to support manufacturing and capacity investments.
- International support for Indonesia's energy transition is unlikely to occur without corresponding domestic efforts; specifically, international interest in buying out old coal plants is diminished if new ones are built as replacements.
- Successful long-term international support depends on five simultaneous actions: creating favorable policy and credible targets, negotiating a coal exit strategy, addressing energy system vulnerabilities, strengthening international climate pledges, and establishing a dialogue framework.
Cite the original document
- APA
- NewClimate Institute (2022). Initiating a fair and inclusive energy transition in Indonesia. http://www.newclimate.org/resources/publications/initiating-a-fair-and-inclusive-energy-transition-in-indonesia
- Chicago
- NewClimate Institute. Initiating a fair and inclusive energy transition in Indonesia. 2022. http://www.newclimate.org/resources/publications/initiating-a-fair-and-inclusive-energy-transition-in-indonesia.
- Wikipedia
- {{cite report |author=NewClimate Institute |title=Initiating a fair and inclusive energy transition in Indonesia |date=31 March 2022 |url=http://www.newclimate.org/resources/publications/initiating-a-fair-and-inclusive-energy-transition-in-indonesia |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{newclimateinstitute2022initiating, author = {{NewClimate Institute}}, title = {{Initiating a fair and inclusive energy transition in Indonesia}}, institution = {NewClimate Institute}, year = {2022}, month = mar, url = {http://www.newclimate.org/resources/publications/initiating-a-fair-and-inclusive-energy-transition-in-indonesia}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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