Indonesia’s Just Energy Transition: The Societal Implications of Policy and Legislation on Renewable Energy

Abstract

The global shift to decarbonization and a sustainable economic development underscores the importance of a just energy transition. In 2019, Indonesia’s energy sector accounted for 34.5 per cent of its total emissions (lulucf included). While transitioning to green energy is paramount, it is laden with interwoven challenges encompassing technological innovation, infrastructure expansion, financing, and harmonizing socio-economic and environmental outcomes. At the heart of a just energy transition is the commitment to counteract potential setbacks, such as unemployment, ecological degradation, and ensuring equitable prospects within the transformative phase. This article delves into Indonesia’s legislative and policy framework regarding energy transition, spotlighting the obstacles and potentialities of implementing current strategies as well as contemplating the formulation of future policies that champion justice in the energy metamorphosis. Our research methodology includes a literature review with extensive interviews with pivotal stakeholders. The goal is to gauge the ramifications of Indonesia’s energy policies in their social, economic, and environmental dimensions. While Indonesia has an impressive potential in renewable energy resources, a distinct challenge remains – the absence of transparency in orchestrating a just energy transition. Forthcoming legislation and strategies should focus on community needs, particularly of marginalized people, ensuring that they benefit from a just energy transition. Incorporating stakeholders in policy deliberations is vital to shape comprehensive, inclusive strategies.