Jakarta – The Institute for Essential Services Reform (IESR) encourages the concept of just transition to be implemented in all derivative regulations, including the 2025-2029 National Medium-Term Development Plan (RPJMN). To integrate a just energy transition, Indonesia through the Ministry of National Development Planning (Kementerian PPN/Bappenas) has included the energy transition in the National Long-Term Development Plan (RPJPN) 2025-2045.
IESR Executive Director, Fabby Tumiwa, stated that the energy transition will have an impact on decreasing income in coal-producing regions. This is due to the decline in coal exports due to the global energy transition away from coal-fired power plants and the net zero emission (NZE) targets of countries around the world. “The energy transition also brings benefits, such as the creation of green jobs and reduced health costs due to reduced emissions and air pollution,” Fabby said in the Just Transition Dialogue webinar: Definition and Scope of Just Transition in the Indonesian Context on Monday, July 15.
Fabby added that economic diversification and transformation need to be planned to anticipate the social and economic impacts of the coal industry’s decline. The government should focus on developing alternative economies in coal-producing areas, especially micro, small and medium enterprises (MSMEs) that can create new jobs.
“This is important to help the local economy when the coal sector is no longer relied upon as the main economic source,” he explained.
On the same occasion, IESR’s Green Economy Program Manager, Wira A Swadana, emphasised the importance of ensuring that the energy transition is fair and sustainable. According to him, there are three main objectives of a just transition: addressing existing issues, anticipating potential problems from the transition, and promoting a low-carbon system.
“The equitable transition process must involve economic, socio-political, and environmental transformation through a multi-stakeholder and multi-sectoral approach,” Wira said.
Meanwhile, the Director of Energy, Mineral and Mining Resources at Bappenas, Nizhar Marizi, said that the energy transition in the 2025-2045 RPJPN includes the gradual phase-out of coal-fired power plants. This requires strong planning with attention to equitable aspects.
“The analysis of economic transformation in supporting an equitable energy transition should include the development of potential agriculture, manufacturing industry, and tourism sectors, as well as coal mine reclamation programs,” said Nizhar.
Nani Hendiarti, Deputy for Coordination of Environmental and Forestry Management at the Coordinating Ministry for Maritime Affairs and Investment, said that Indonesia needs to define a just energy transition according to domestic conditions by referring to existing international definitions.
“Indonesia has established the National Energy Transition Task Force (Satgas TEN) to accelerate the energy transition in the electricity subsector,” said Nani.
Nani also stated that the Task Force will start the just transition program by drafting a white paper to define focus areas and identify gaps in current efforts.
“We have planned a pilot study on just transition in coal-producing areas in Kalimantan with IESR and Ministry of Energy and Mineral Resources,” she added.
With these steps, it is hoped that coal-producing regions can build stronger and more sustainable economic resilience, to be able to face the impact of the energy transition in a fair and balanced manner. (Hartatik)
