Transición energética justa y carbón en Indonesia
Summary
The document analyzes the economic, political, and governance challenges of phasing out coal in Indonesia, emphasizing the need for multi-level coordination, economic diversification for affected workers, and the removal of coal subsidies to enable a just energy transition.
Key insights
- Coal is deeply embedded in Indonesia's economy, representing nearly 2% of the GDP in 2022 and providing approximately 67% of the country's electricity generation.
- The phase-out of coal is hindered by artificially low prices caused by government-mandated price caps (around USD 70 per metric ton for the power sector) and export bans conditioned on domestic supply obligations.
- Political and economic 'lock-in' occurs because local governments may rely on mining royalties for up to 40% of their budgets, and 'revolving doors' exist between the coal industry and political sectors.
- Stakeholder perspectives on the transition are divided: industry actors and some government agencies favor technological solutions like carbon capture and storage, while NGOs and international organizations advocate for an accelerated phase-out focusing on social and environmental impacts.
- There is a significant gap in government capacity for planning, characterized by weak communication between national and regional agencies, high staff turnover at the regional level, and a lack of technical or budgetary support for subnational governments.
- The document recommends establishing a Just Energy Transition Support Mechanism managed by the Ministry of National Development Planning (Bappenas) to coordinate knowledge, talent, and resource mobilization.
- To accelerate the transition, the report suggests removing harmful coal subsidies, reforming electricity pricing to include negative externalities, and easing bureaucratic hurdles for renewable energy companies to integrate with the sole distributor, PLN.
Cite the original document
- APA
- Bößner, S., Surya, I. R. F., Mendrofa, M. J. S., & Arond, E. (2025). Transición energética justa y carbón en Indonesia. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2025/04/coal-indonesia-energytransition-sei2025.pdf
- Chicago
- Bößner, Stefan, Iham R. F. Surya, Martha Jesica Solomasi Mendrofa, and Elisa Arond. Transición energética justa y carbón en Indonesia. Stockholm Environment Institute, 2025. https://www.sei.org/wp-content/uploads/2025/04/coal-indonesia-energytransition-sei2025.pdf.
- Wikipedia
- {{cite report |last1=Bößner |first1=Stefan |last2=Surya |first2=Iham R. F. |last3=Mendrofa |first3=Martha Jesica Solomasi |last4=Arond |first4=Elisa |title=Transición energética justa y carbón en Indonesia |publisher=Stockholm Environment Institute |date=February 2025 |url=https://www.sei.org/wp-content/uploads/2025/04/coal-indonesia-energytransition-sei2025.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{bner2025transicin, author = {Bößner, Stefan and Surya, Iham R. F. and Mendrofa, Martha Jesica Solomasi and Arond, Elisa}, title = {{Transición energética justa y carbón en Indonesia}}, institution = {Stockholm Environment Institute}, year = {2025}, month = feb, url = {https://www.sei.org/wp-content/uploads/2025/04/coal-indonesia-energytransition-sei2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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