With energy security and affordability at the forefront of the policy discussion, Indonesia is focusing on the implementation of its international climate commitments. This transformation presents various challenges, given the size and diversity of the archipelago country.
Indonesia is the world's fourth most populous nation and the largest greenhouse gas emitter in Southeast Asia. The country relies heavily on domestic coal, which covered 67% of power generation in 2022. Progress in terms of solar and wind energy deployment has been very limited in the country, despite a lot of potential.
However, the narrative around the energy transition is shifting since the country pledged to reach net zero by 2060 or earlier. Furthermore, with the support of its international partners, Indonesia launched the most ambitious energy transition programme in its history as part of the Just Energy Transition Partnership (JETP). The JETP proposes to channel billions of dollars to help Indonesia pivot away from fossil fuels.
Indonesia is one of the biggest consumers and exporters of coal globally. It has committed to phasing out unabated coal from its power mix by 2050 and ramping up the share of renewables to 34% by 2030. Being a major supplier of nickel and tin, the country is also expected to play a significant role in the clean energy supply chain, especially for the battery industry.
A well-managed energy transition in Indonesia could provide a valuable example for countries in the Global South undergoing similar changes. Agora Energiewende supports partner organisations in Indonesia in strengthening their capacity and facilitating access to knowledge and research. Activities by Agora include analysis of mid and long-term energy scenarios, and work on renewable energy ramp-up and integration, power system flexibility, just coal transition, carbon pricing and together with Agora Industry the clean industry transformation.