Jakarta, INTI – Amid the urgency of expanding equitable access to clean energy and rising climate crisis risks, Indonesia reaffirmed its strategic direction on Monday, November, 17, 2025. The government emphasized that major challenges in financing, regulatory reform needs, and opportunities in the green economy must be addressed through a just and sustainable energy transition. This commitment is positioned not only as a climate solution but also as a foundation for economic growth toward Indonesia Emas 2045.
Energy Transition as a National Growth Strategy
The government reiterated that the energy transition is a key pillar in realizing a low-carbon economy. Farah Heliantina, Deputy Assistant for Energy Transition Acceleration at the Coordinating Ministry for Economic Affairs, stated that Indonesia is entering a crucial phase in implementing its NDCs and achieving its Net Zero Emission targets.
“Energy transition is not a burden, but the engine of future growth,” Farah said, highlighting the need for green financing to accelerate emission reductions and create green jobs.
She added that the success of the energy transition requires strong-quality investment supported by licensing reforms and a consistent business climate so that both domestic and global capital can flow more effectively.
Building a Low-Carbon Economic Ecosystem
Axel Priambodo, Senior Public Policy Analyst at the Coordinating Ministry for Economic Affairs, explained that Indonesia is developing a new economic ecosystem based on clean energy and green industry. He emphasized that renewable energy must reinforce industrial competitiveness to achieve the 8% growth target and NZE 2060.
Axel noted that Indonesia holds a strategic position as a global clean-tech manufacturing hub, supported by its strong value chain from critical minerals to battery and electric vehicle industries.
“This is not just about building power plants, but creating green value creation,” he stated.
JETP as a Renewable Energy Financing Accelerator
Paul Butarbutar, Head of the JETP Indonesia Secretariat, emphasized that the Just Energy Transition Partnership is designed as a more targeted, transparent, and measurable financing platform. Its focus is on channeling capital to priority sectors such as renewable energy, energy efficiency, geothermal, and transmission.
“JETP is a transformation platform. Every investment must contribute to emission reduction and strengthen the clean energy industry,” he said.
Paul added that thematic research from electrification to just transition strategies will serve as policy references for the government to ensure sustainable and investment-friendly projects.
Blended Finance as the Key to Attracting Global Investment
Esmyra Javier, Senior Climate Change Specialist at ADB, underscored blended concessional finance as an effective mechanism to reduce risk in renewable energy projects. She stated that investors require regulatory certainty and strong governance.
“Regulatory stability is the new currency in green investment,” she asserted.
ADB has demonstrated that concessional funds can attract significant private investment, creating a multiplier effect for large-scale energy projects.
Social Justice as the Foundation of Energy Transition
Maryati Narto Prayitno, Program Officer at the Ford Foundation, reminded that the energy transition must place people at the center of policy. She emphasized the importance of public participation, protection for affected communities, and access to financing for local groups.
“We cannot only talk about gigawatts. We must talk about people,” she said.
Echoing this, Marsya M. Handayani, Head of Environmental Governance at ICEL, stressed the need for public monitoring systems, grievance mechanisms, and access to information to ensure that clean energy projects are implemented fairly.
Global Lessons from South Africa
Dumisani Nxumalo, Acting COO of the South African Presidential Climate Commission, shared South Africa’s experience in implementing a just transition rooted in distributive, procedural, and restorative justice.
He emphasized that an energy transition can only be considered just when its economic benefits are shared equitably.
Conclusion
Through these statements, Indonesia affirmed that the energy transition is not merely a climate agenda but a long-term development strategy requiring substantial financing, policy reform, and cross-sector collaboration. By placing social justice at its core, the government aims to ensure that the benefits of the energy transition are felt across all segments of society while strengthening national competitiveness in the green industry.
Read More: Indonesia Accelerates Adoption of Modern Energy Storage Systems