Context:
The Indonesian government pursues ambitious targets to increase the share of renewable energy in its primary energy mix from 12.3 per cent in 2022 to 70 per cent by 2045. This includes reaching 44 per cent renewable energy in electricity production by 2030, as part of the Just Energy Transition Partnership (JETP) with support from the International Partners Group (IPG). However, achieving these goals requires large-scale renewable energy projects and limits on new coal-fired power plants. Both measures demand social acceptance and support from affected stakeholders.
Objective:
Indonesia has improved regulatory and strategic conditions for implementing Just Energy Transition (JET) principles, both nationwide and in selected regions, particularly for electricity production.
Approach:
To achieve its objectives, the project:
- Enhances institutional abilities in national government agencies to apply JET principles and integrate them into national energy-related policies, including the national mid-term development plan (RPJMN) and national electricity plan
- Supports subnational government agencies, renewable energy companies, and local communities to manage social and environmental risks associated with large-scale renewable energy projects
- Introduces gender-sensitive measures to promote economic diversification in East Kalimantan, anticipating a decline in coal production.