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This research, conducted by E3G in collaboration with IESR, aims to delve into the political economy of electric vehicle (EV) development in Indonesia. By analyzing the underlying political dynamics, the study seeks to identify barriers and opportunities for accelerating the transition to EVs. The research builds upon the understanding that political economy factors, rather than solely technical or economic constraints, often hinder significant policy changes. By examining the complex interplay of interests, power dynamics, and institutional factors, this study provides valuable insights for policymakers, industry stakeholders, and civil society to support the effective implementation of EV policies in Indonesia.

Indonesia stands at a critical juncture in its energy transition journey. The IETO 2025 report provides a comprehensive analysis of the country’s progress, challenges, and opportunities in the face of a rapidly changing global energy landscape.

Despite government commitments, Indonesia has made limited progress in renewable energy adoption and decarbonization. The continued reliance on coal hinders the transition to a low-carbon future. However, global trends in renewable energy and declining costs present a window of opportunity for Indonesia to leverage its abundant solar, geothermal, and bioenergy resources.

To accelerate the transition, several key challenges must be addressed. These include strengthening policy and regulatory frameworks, mobilizing financing, fostering innovation and technology transfer, ensuring a just transition, and strengthening international cooperation.

By addressing these challenges and seizing the opportunities, Indonesia can pave the way for a sustainable and prosperous future. The IETO 2025 report serves as a crucial tool for policymakers, businesses, and civil society to understand the complexities of the energy transition and to make informed decisions.

Authors: Martha Jesica Solomasi Mendrofa, Ilham Rizqian Fahreza Surya, Alvin Putra Sisdwinugraha, Farid Wijaya, Rahmi Puspita Sari, Putra Maswan, Muhammad Dhifan Nabighdazweda, Shahnaz Nur Firdausi, Anindita Hapsari, Pintoko Aji, Raditya Wiranegara, Faris Adnan Padhilah, His Muhammad Bintang, Julius Christian

This report provides a brief overview of ASEAN’s power sector landscape in 2023, tracks energy transition development in the past five years, presents several scenarios on decarbonisation for ASEAN, documents policy changes in the past year and emerging discourses in ASEAN energy transition. This report presents strategies to fine-tuning policies to reduce dependence on fossil fuels and start the systemic shift necessary for a clean power sector transition, providing strategic guidance for policymakers, researchers and energy practitioners in the region.

Developed by CASE, this study investigates how Indonesia can achieve its ambitious decarbonization goals for the power sector. The study analyzes the economics of two decarbonization strategies for Coal Fired Power Plant (CFPP): early retirement by 10 years and replacing it with solar power, compared to retrofitting the CFPP with carbon capture and storage (CCS) technology. The report recommends a multi-pronged approach: strategically retiring coal plants while least-prioritizing the use of CCS on CFPPs, creating a clear national plan for coal phase-out, and implementing carbon pricing to incentivize renewables.

As Indonesia works to realize its 2045 goals under the “Indonesia Emas” vision, the upcoming Indonesia Sustainable Energy Week 2024 (ISEW 2024) aims to bring together various stakeholder groups. The event will provide a platform to explore a wide range of energy transition topics. This year’s theme, “United Towards a Sustainable FutuRE”, aligns with Indonesia’s long-term objectives, aiming to elevate the country to a leading position in sustainable development by 2045.

The Indonesia Emas 2045 vision encompasses comprehensive development goals, including achieving economic prosperity, social equity, and environmental sustainability. A clean energy transition is pivotal in this journey, as reliable, low-emission energy systems are essential for sustaining economic growth while improving the quality of life for Indonesia's rapidly expanding middle class.

Organized by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, in collaboration with other German-funded organizations like Clean Affordable and Secure Energy for Southeast Asia (CASE), ISEW 2024 showcases the robust partnership between Indonesia and Germany. This cooperation, spanning over three decades, has been instrumental in advancing Indonesia’s renewable energy initiatives, from upscaling renewable energy to extending transmission grids and developing green jobs.

Elisabeth Tinschert, Energy Programme Director for GIZ Indonesia/ASEAN, views this event as a testament to the longstanding energy cooperation between the two nations. “For me, the theme stands for the spirit of collaboration, as both countries work hand in hand to support Indonesia’s unique transition towards a sustainable energy system based on renewable energy,” she told SIPET.

The event will bring together government officials, industry leaders, and civil society to explore innovative solutions for Indonesia’s energy future. Tinschert adds, “We want ISEW to be a platform for dialog, to bring new ideas, to bridge perspectives, to dare to ask, to be controversial, but also to come together and find a joint pathway forward.”

An important highlight of this year’s event is the focus on Indonesia’s state-owned power utility, PLN, which, with support from GIZ and KfW, has successfully increased the share of renewable energy in South Sulawesi’s grid to 42%.

ISEW 2024 also introduces new formats, such as the “Sustainable Energy Investment Day,” designed to foster private sector engagement and explore opportunities in low-carbon energy. Tinschert is enthusiastic about this development: “We kick-start our collaboration with private sector champions – to showcase the companies that are ready to move towards low carbon energy across their business.” The event will bring together project developers and financiers, including leading figures like Prof. Dr. Eng. Eniya Listiani Dewi from the Ministry of Energy and Mineral Resources (KESDM), PLN Rumah PATEN, PT Sarana Multi Infrastruktur (PT SMI), and financial institutions like the World Bank and KfW.

The event’s inclusive approach extends to all energy-relevant ministries and stakeholders, ensuring a comprehensive dialog on Indonesia’s energy transition. The discussions on the final day will be dedicated to the Just Energy Transition, exploring how Indonesia can create a fair and equitable path to sustainability – key to achieving the goals of Indonesia Emas 2045. Tinschert is particularly excited about the potential for these sessions to engage diverse voices, including those from youth and community groups. “For me, ISEW creates excitement, for being part of Indonesia’s energy transition journey. As a rapidly expanding economy, with an aspiring middle class, and significant renewable energy potential, Indonesia has all the right ingredients to move to a green economy based on sustainable energy,” she said.

 “I would like ISEW to be a call to everyone to take an active role in shaping the energy system of the future,” she said.

Find more information and register for the event here.

This inaugural Jelajah Energi was conducted in Central Java as part of our collaboration with the Central Java Provincial Government. The Institute for Essential Services Reform (IESR) has been working with the Provincial Government of Central Java to accelerate the utilization of solar energy through the Central Java Solar Province initiative since 2019. Through various research activities, capacity building, and information dissemination, solar energy is encouraged to become one of the main sources of energy fulfillment in Central Java. In this province, various stories of energy transition can also be found, with many types of renewable energy and stories of people feeling the benefits.

Indonesia aims to transition from coal to renewable energy. In November 2023, Indonesia's Comprehensive Investment and Policy Plan (CIPP) was published, outlining the power sector emissions reduction roadmap. However, critical elements are missing. This report develops a high-ambition pathway for coal transition by combining a global integrated assessment model (GCAM), a power system dispatch model (PLEXOS), and bottom-up analyses. Download here.

Authored by Akbar Bagaskara,  Maria A. Borrero, Ryna Cui, Claire Squire, Jiehong Lou, Camryn Dahl, Molly Schreier, Raditya Wiranegara, Fabby Tumiwa, Nate Hultman, Deon Arinaldo.

The Province of Bali has an aspiration to achieve net-zero emissions (NZE) by 2045. To support this aspiration, the Institute for Essential for Services Reform (IESR) in collaboration with partners analyzed the potential of renewable energy (RE) in Nusa Penida that can be developed. In addition, this report also contains an in-depth analysis of Nusa Penida’s electricity system. This analysis is useful for obtaining the optimal configuration of generation, transmission, and distribution systems to supply regional energy needs, including potential renewable energy power plant capacity, proposed locations, and network adjustment needs.

IESR, together with the Bali Provincial Government and a number of partners, launched the Nusa Penida 100% Renewable Energy Roadmap on March 6, 2024 in Nusa Penida, Bali. The results of the analysis and study of the 100% Renewable Energy Nusa Penida Roadmap are expected to become a blueprint for renewable energy-based island development and become part of the Bali NZE 2045 roadmap.