Understanding the Socioeconomic Implications of Indonesia’s Net Zero Energy Transition

This research paper analyzes how Indonesia can reconcile an 8% annual GDP growth target by 2029 with its net zero emission commitments. Using simulations based on the Comprehensive Investment and Policy Plan (CIPP) for the Just Energy Transition Partnership (JETP), the paper argues that early investment in clean energy is essential for securing high economic growth while reducing fossil fuel dependence.

• Under a CIPP-aligned JETP scenario, Indonesia can achieve 8% real GDP growth by 2029, supported by investments in renewable energy deployment, energy efficiency, and low-carbon energy infrastructure.
• The transition to clean energy is projected to yield significant economic and employment gains, including a return of $1.41 billion for every $1 billion invested in renewable energy and the creation of over 1 million jobs in renewable energy construction, with 1.8 million people employed in power generation by 2050. Additionally, the power sector's contribution to national GDP is expected to rise to between 3.41 and 8.03 percent by 2050.
• The CIPP-aligned scenario projects a dramatic reduction in greenhouse gas emissions compared to business-as-usual, with emissions peaking at 324 million tonnes of carbon dioxide equivalent (MtCO2e) in 2033 and falling to 13.2 MtCO2e by 2050, down from a projected 1.86 gigatonnes of carbon dioxide equivalent (GtCO2e). This transition also improves energy security by reducing oil imports by 1.23 million barrels/day and lowers the economic burden of healthcare by reducing air pollution-related illnesses and deaths.

APA

World Resources Institute (n.d.). Understanding the Socioeconomic Implications of Indonesia’s Net Zero Energy Transition. https://www.wri.org/research/understanding-socioeconomic-implications-indonesias-net-zero-energy-transition

Chicago

World Resources Institute. Understanding the Socioeconomic Implications of Indonesia’s Net Zero Energy Transition. n.d. https://www.wri.org/research/understanding-socioeconomic-implications-indonesias-net-zero-energy-transition.

Wikipedia

{{cite report |author=World Resources Institute |title=Understanding the Socioeconomic Implications of Indonesia’s Net Zero Energy Transition |url=https://www.wri.org/research/understanding-socioeconomic-implications-indonesias-net-zero-energy-transition |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendunderstanding, author = {{World Resources Institute}}, title = {{Understanding the Socioeconomic Implications of Indonesia’s Net Zero Energy Transition}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/understanding-socioeconomic-implications-indonesias-net-zero-energy-transition}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }