Ambiguities versus Ambition: A Review of Indonesia's Energy Transition Policy

A review of Indonesia's energy transition policy focusing on the challenges of meeting Just Energy Transition Partnership (JETP) targets amidst a legacy of coal-fired power expansion and state utility debt.

• Indonesia faces significant challenges in meeting JETP targets, which include peaking power sector emissions by 2030 and achieving 34% renewable energy generation by 2030. These goals require a fundamental change in power regulation and a departure from previous energy security planning.
• Recent energy capacity additions have been dominated by fossil fuels, with over 12 GW commissioned in the last five years, increasing the coal fleet by 30%. In contrast, renewable energy growth is slow, with only 1.6 GW added between 2017 and 2021, primarily from geothermal and hydro, while solar and wind represent less than 1% of additions.
• The state electricity company, Perusahaan Listrik Negara (PLN), suffers from heavy debt and poor financial returns due to an oversupply of electricity. This oversupply resulted from overestimating demand and over-constructing large fossil fuel generators, alongside market barriers. To align with JETP, the updated Electricity Supply Business Plan (RUPTL) must halt and cancel committed and awarded new coal power plants.

APA

TrendAsia (2023). Ambiguities versus Ambition: A Review of Indonesia's Energy Transition Policy. Trend Asia. https://trendasia.org/en/ambiguities-versus-ambition-a-review-of-indonesias-energy-transition-policy/

Chicago

TrendAsia. Ambiguities versus Ambition: A Review of Indonesia's Energy Transition Policy. Trend Asia, 2023. https://trendasia.org/en/ambiguities-versus-ambition-a-review-of-indonesias-energy-transition-policy/.

Wikipedia

{{cite report |last1=TrendAsia |title=Ambiguities versus Ambition: A Review of Indonesia's Energy Transition Policy |publisher=Trend Asia |date=28 March 2023 |url=https://trendasia.org/en/ambiguities-versus-ambition-a-review-of-indonesias-energy-transition-policy/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{trendasia2023ambiguities, author = {TrendAsia}, title = {{Ambiguities versus Ambition: A Review of Indonesia's Energy Transition Policy}}, institution = {Trend Asia}, year = {2023}, month = mar, url = {https://trendasia.org/en/ambiguities-versus-ambition-a-review-of-indonesias-energy-transition-policy/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }