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

The analysis demonstrates that early investment in clean energy is essential for Indonesia to achieve 8% annual GDP growth by 2029 while meeting climate goals. Under a CIPP-aligned JETP scenario, the transition is projected to create over 1 million jobs in renewable energy construction, significantly reduce greenhouse gas emissions, and improve energy security by reducing oil imports.

• Under the CIPP-aligned JETP scenario, Indonesia can achieve 8% real GDP growth by 2029, supported by investments in energy efficiency, renewable energy deployment, and low-carbon energy infrastructure.
• The transition to clean energy offers significant economic returns and employment opportunities, with renewable energy investments projected to return $1.41 billion for every $1 billion spent and creating over 1 million jobs in construction and 1.8 million in power generation by 2050.
• The CIPP-aligned scenario would lead to a dramatic reduction in greenhouse gas emissions, peaking at 324 million tonnes of carbon dioxide equivalent (MtCO2e) in 2033 and falling to 13.2 MtCO2e by 2050, compared to a business-as-usual projection of 1.86 gigatonnes of carbon dioxide equivalent (GtCO2e).
• The energy transition is projected to enhance energy security and reduce fiscal pressure by decreasing oil imports by 1.23 million barrels per day, while also lowering 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} }