Jakarta – A study by the Institute for Essential Services Reform (IESR) in collaboration with the Stockholm Environment Institute (SEI) shows that the central government and local governments have different capacity strengths in supporting the energy transition. Still, both require capacity building in various aspects.
Wira Swadana, IESR Green Economy Programme Manager, said that the preliminary results of the study on the analysis of the capacity of central and local government institutions to support sustainable coal transition in Indonesia showed the need for careful planning and implementation in the equitable energy transition. He added that qualified and complementary capacities, as well as close collaboration between the national and local governments, are crucial.
“The study identified eight important government capacities, including awareness, technical knowledge, stakeholder engagement, communication, multi-level networking, finance, instrumental mastery in structuring and strengthening organisations, and implementing the energy transition,” Wira explained during a national workshop on Equitable Transition: Building Capacity for a Sustainable Coal Transition in Indonesia hybrid.
Martha Jesica, IESR’s Social and Economic Analyst, explained three main factors that cause the capacity-building gap between central and local governments. First, rapid labour changes limit information exchange. Second, there is a lack of awareness of the impacts of coal and economic development. Third, complexity in multilevel communication between governments.
Meanwhile, at the same occasion, Stefan Boessner, Research Fellow at the Stockholm Environment Institute, highlighted the importance of governments making policies and regulations that support low-carbon initiatives and technologies. According to him, “economic diversification is also considered key to achieving an equitable energy transition.”
He added that such economic diversification options are available in Indonesia. For example, regions that produce coal can develop environmental tourism and utilise mining land for solar energy installations or energy storage. (Hartatik)