Should we celebrate Indonesia's energy transition?

Although Indonesia’s recent energy transition looks bleak, we should celebrate every small step the country has taken to reduce fossil fuel use and replace it with clean energy to protect future generations from the catastrophic consequences of climate change.

Can Indonesia achieve its energy transition goals by 2060?

This paper aims to assess Indonesia’s potential for realising its energy transition goals. It evaluates the country’s economic strength, past experiences in energy transition and the current status of ongoing initiatives. It concludes that significant progress is possible, but achieving NZEs by 2060 remains a major challenge.

Who decides on Indonesia's energy transition?

The final decision on this matter rests with the United Nations. At the Group of Twenty (G20) Leaders’ Summit in Bali in late 2022, the Indonesian government and the International Partners Group (IPG) entered a partnership supporting ambitious new targets for Indonesia’s energy transition.

Will Indonesia secure funding for the energy transition?

To secure the necessary funding, Indonesia must develop robust financial systems combining domestic resources, international loans and carbon market mechanisms. Whether Indonesia will successfully secure the required funding for the energy transition remains uncertain.

Why does Indonesia have a slow transition?

According to Burke et al. (Citation 2019), there are at least three main reasons for this slow transition in Indonesia. First, the market position of fossil fuel energy holds significance in the Indonesian economy. Fossil fuel mining has been a crucial source of income for the Indonesian government.

Which countries are exploring a transactive energy approach?

Other countries, including Australia and the Netherlands, are also exploring new approaches. The transactive energy approach offers a way for producers and consumers to more closely match and balance energy supply and energy demand.