Just energy transitions and coal in Indonesia: policy recommendations to move forward

The recommendations, while aiming to inform policy and practice on just transition in Indonesia, can also be useful for other countries in the region and beyond that are facing just transition of important fossil fuel-based economies. The brief draws insights from a multi-stakeholder workshop and two reports produced as part of the cross-country project on just transitions from coal in Colombia, Indonesia and South Africa (Bößner et al., 2023; IESR, 2024).

• Indonesia needs to involve a wide range of stakeholders in building a shared vision towards a just energy transition, to move beyond dependencies on coal value chains and to allow a just distribution of costs and benefits for local and national economies, the environment, communities and workers.
• Efficient and effective just transition planning requires strengthening multi-level governance mechanisms and improving communication between government units to enable greater support for economic diversification, land remediation, and social support for affected groups.
• Awareness and technical capacity-building efforts should be improved among policy stakeholders, including around issues of finance, labour, skills, land planning and economic diversification, among other topics on how to facilitate energy transitions.
• Electricity market reforms should be adopted that encourage the increase of renewable forms of energy.