Knowledge Hub

Indonesia is the fourth-most populous country in the world with a fast-growing economy. The industrial sector is one of the largest CO2-emitting sectors in Indonesia. Decarbonizing the industrial sector is critical to achieving Indonesia's enhanced Nationally Determined Contributions (NDCs).

This in-depth study, conducted jointly by the Lawrence Berkeley National Laboratory and the Institute for Essential Service Reforms (IESR) of Indonesia developed sector-specific roadmaps for deep decarbonization of five key industry sectors in Indonesia: iron and steel, cement, ammonia, pulp and paper, and textile industries, which are responsible for 70% of the industrial emissions in Indonesia. We analyzed the current status of the studied industries and analyzed different decarbonization pathways that can substantially reduce the CO2 emissions of Indonesia's industry sector. The results of the collaboration demonstrate that it is technically feasible to mitigate 100 million tonnes (Mt) of CO2 emissions from today's level, or 160 MtCO2 emissions from the reference scenario, and achieve near-zero CO2 emissions in the studied Indonesia’s industrial sectors by 2060, as well as 2050 in an accelerated mitigation scenario.

The Just Transition Finance Needs or 'JET-FIN' Tool was developed as an open-source Excel model to help inform critical considerations in kick-starting the transition away from fossil fuel reliance to clean technologies. This tool facilitates an analysis of the key finance needs for a just energy transition in Indonesia’s power sector. It covers different pathways, allowing users to adjust critical parameters and test their influence on potential investment needs over time. 

An analysis using the Just Energy Transition Finance Needs tool // JET-FIN 

Indonesia’s Just Energy Transition Partnership (or ’JETP’) places a central focus on peaking and then cutting power sector emissions with the support of public and private finance. To help inform critical considerations in kick-starting the transition away from fossil fuel reliance to clean technologies we have developed an open-source Excel model, ‘JET-FIN’. This tool facilitates an analysis of the key finance needs for a just energy transition in Indonesia’s power sector. It covers different pathways, allowing users to adjust critical parameters and test their influence on potential investment needs over time. 

Our analysis uses electricity sector pathways to systematically analyse the key elements of the energy transition in Indonesia that require financing, including: 

i) phase-out of coal 

ii) clean build-up of new infrastructure 

iii) regulatory interventions to facilitate a just transition, and 

iv) additional institutional capacity needs. 

The main findings are outlined in the report available for download on this webpage, with further details on our approach set out in the accompanying methods document. 

In 2023, Indonesia’s energy transition began to gain momentum. The Ministry of Energy and Mineral Resources has started inter-ministerial discussions to prepare a roadmap for phasing out coal by 2050. JETP CIPP has launched an agreement for the early retirement of the Cirebon PLTU. The National Energy Board has updated the 2014 National Energy Policy to align with the zero emissions target by 2060.

Two state-owned companies, PLN and Pertamina, are also taking concrete steps towards the energy transition by setting ambitious renewable energy targets and investing in new projects. In addition, a growing number of companies are demanding clean electricity and investing in renewable energy. However, the transition in the transportation and industrial sectors is still in its early stages. A lack of leadership, urgency, and direction from the top has slowed the pace of decarbonization in these two sectors.

IESR is pleased to present IETO 2024, which documents the progress of the energy transition in the power, industry, transportation, and building sectors and their enabling environment: policy, regulation, finance, clean technology adaptation, and public and local participation. IETO 2024 is the most comprehensive report yet, the result of more than 7 months of collaboration and research by 16 young and highly motivated IESR analysts.

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.

The book of Start from Here: Understanding Energy Transition in Indonesia is a non-fictional book that tells the development of energy through its historical journey, the utilization and the importance of transition towards clean energy for a sustainable future. This book is first published in Bahasa Indonesia, to elevate the knowledge and education of secondary school students and the public. CASE Acknowledges how critical education is towards a smooth energy transition in Indonesia and how to ensure the just aspect of it. The book is free to download so everyone can have access towards education about energy transition.

To view full publication, please click on the link in further information. 

As the Government of Indonesia prepares to publicly launch its first iteration of plans to deliver on the goals of the Just Energy Transition Partnership it announced one year ago, we take a look at implications for the workers and communities that currently depend on its large and growing coal sector. The ‘Comprehensive Investment and Policy Plan’, or CIPP (a draft of which is open for public consultation), will set out a transition pathway towards a cleaner power sector to drive Indonesia’s economic development in the coming decades. It needs to offer both concrete policies as well as financial support packages to ensure that justice – particularly for those employed in the coal sector and their dependents – sits at the heart of the transition.

This study assesses the current air quality and its health impacts, and the associated external economic costs of coal power plants in Indonesia. The study also includes the impact of various policy pathways into the future. We present the first health-based phase-out pathways that are designed to maximise public health benefits of retiring coal power plants. By using the impact pathway approach, this study quantifies the health impacts of air pollutant emissions from coal power generation in Indonesia.

The narrative trends report by CASE Indonesia aims to highlight the abundance of online and media narratives from different stakeholders. The report utilizes comprehensive methodology, involving the analysis of public statements, measuring media conversations, and assessing relevant stakeholders

To read full report, please find the link Further Information.