A new report by Landscape Indonesia and the Center for Global Sustainability (CGS) shows that by advancing the adoption of renewables, Indonesia can grow its economy and meet long-term climate targets. But that transformation requires major policy reforms, investments, and tech advancements to reduce the country’s reliance on coal.
As the global climate crisis intensifies, countries must accelerate their transitions to low-carbon and renewable energy sources. Indonesia's commitment to this clean energy transformation is crucial not only to meet international climate targets but also to achieve sustainable, inclusive growth domestically. The Just Energy Transition Partnership offers vital financial resources to help Indonesia scale up renewable energy and accelerate coal plant retirements, supported by targeted policy efforts. However, overcoming the financial costs of coal plant retirements and ensuring effective renewable deployment is key to a successful transition.
The report outlines a pathway to net-zero emissions, driven by a shift toward renewable energy and a significant reduction in fossil fuel usage, especially coal-fired generation. The report examines two scenarios: in the baseline scenario, renewable energy capacity rises from 10.7 GW in 2022 to 35.8 GW by 2030, but the number of coal-fired power plants continues to grow. A more aggressive renewable energy push is necessary to meet climate targets, alongside doubling energy efficiency improvements.
The green transition in Indonesia will require substantial financial investments: $65 billion from 2025–2030, growing to $1.08–1.22 trillion by 2060 for the creation of renewable energy infrastructure. These investments could generate up to 28.1 million green jobs by 2060 and lift millions out of poverty. Also, reduced reliance on fossil fuels would cut air pollution, improve public health, and reduce healthcare costs nationally.
“To meet its climate targets and global commitments, Indonesia must adopt strong policies to phase out coal and accelerate renewable energy,” said Jiehong Lou, CGS Assistant Research Director and report author. “The JET scenarios provide a clear path to net-zero emissions by 2060, with significant reductions by 2030, alongside social benefits like poverty reduction and improved public health through cleaner air.”
Indonesia's energy transition, while challenging, offers immense opportunities. By embracing a green transition, the country can lead the global fight against climate change, drive economic growth, and improve the lives of millions through job creation, better public health, and poverty reduction.
Download the report to learn more.
