Jakarta, INTI - The government emphasizes that the energy transition is a national economic strategy to strengthen energy security, increase industrial competitiveness, and create millions of jobs.
Edi Prio Pambudi, Deputy for Economic Cooperation and Investment at the Coordinating Ministry for Economic Affairs, stated that climate policy is an integral part of Indonesia's economic policy.
"For Indonesia, climate policy is also an economic policy. The energy transition is not a price we pay to please the world; it is a strategy we implement to strengthen ourselves," said Edi at the Indonesia Net Zero Forum 2026 on Saturday, August 1, 2026.
Three Reasons for Energy Transition
According to Pambudi, there are three main reasons why accelerating the energy transition is an urgent need.
First, energy security. Indonesia still spends tens of billions of US dollars annually on fuel imports, making the national economy vulnerable to geopolitical turmoil, shipping disruptions, and exchange rate fluctuations. On the other hand, domestic energy sources such as solar power are considered capable of reducing dependence on imported energy.
Second, industrial competitiveness and the international market. Edi explained that global trade trends are shifting toward low-carbon products. Policies such as the European Union's Carbon Border Adjustment Mechanism (CBAM) will determine the competitiveness of various Indonesian export products, from steel and aluminum to nickel.
Third, job creation. The government estimates that development in the electricity sector over the next decade will create around 1.7 million jobs, including those of engineers, technicians, construction workers, and operators in various regions.
Government’s Targets in RUPTL
Edi stated that the energy transition must be able to generate economic growth that can be directly felt by the community. To realize this transformation, the government has set a target of developing 69.5 gigawatts (GW) of new generating capacity in the 2025–2034 Electricity Supply Business Plan (RUPTL).
This capacity is almost double the total generating capacity built by Indonesia over the past seven decades.
"To put this in perspective, in one decade we will build almost double the total capacity we built over the previous 70 years," said Edi.
Approximately three-quarters of this additional capacity will come from renewable energy and energy storage facilities. This includes approximately 17 GW of solar power plants, nearly 12 GW of hydroelectric power plants, 7 GW of wind turbines, 5 GW of geothermal power plants, and over 10 GW of batteries and pumped storage.
Conclusion
The government emphasizes that the energy transition is a national economic strategy to strengthen energy security, increase industrial competitiveness, and create jobs. The Coordinating Ministry for Economic Affairs stated that the acceleration of the energy transition is driven by three main factors: reducing dependence on fuel imports, increasing export competitiveness in the international market, and creating around 1.7 million jobs over the next decade.
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