Navigating Indonesia’s Power System Decarbonisation with the Indonesia Just Energy Transition Partnership

Indonesia is one of the fastest growing economies in the world and with its rapidly growing energy demand, abundant energy and mineral resources, it is set to play a key role in the global economic and energy landscape. Decarbonising its power system has been identified as a key enabler to achieve its pledge for net zero emissions by 2060, as coal power dominates its electricity mix.

To support Indonesia’s power sector decarbonisation efforts, the Just Energy Transition Partnership was established during a G20 summit in Bali, in November 2022. The first deliverable of the Just Energy Transition Partnership, which was supported by the IEA, is the Comprehensive Investment and Policy Plan, published in November 2023. It details an energy transition pathway for the power sector, proposes policy reforms, provides a framework for a just energy transition and outlines financing needs and requirements.

In this report, we take stock of the current power sector landscape of Indonesia, summarise IEA’s role in the JETP Secretariat and contributions to the work that led to the JETP’s Comprehensive Investment and Policy Plan. We also provide an overview of the JETP pathway as well as analysis and recommendations for the effective decarbonisation of Indonesia’s power sector.