In the Asia Pacific Economic Cooperation (APEC) summit, President Prabowo Subianto mentioned that Indonesia will achieve 100 percent renewable energy ten years from now. This was followed by a statement that Indonesia will phase out fossil fuel plants in fifteen years or by 2040 during the Group of 20 (G20) Summit.
Prabowo laid out his vision and intended to make decarbonization of the energy system a national mission in 15 years. Under his leadership, relevant ministries must make plans and strategies for accomplishing this in the next five years, starting this year.
Indonesia’s renewable energy journey has been fraught with slow progress. In 2014, renewable energy contributed to 7 percent of total energy supply. A decade later, it only reached 14 percent, far from meeting the 23 percent target stipulated in the 2014 National Energy Policy (KEN). Moreover, the initial goal of achieving a 23 percent share by 2025 has been downgraded to 17-19 percent.
The government has initiated several policies to catalyze investment, including Presidential Regulation No.112/2022, which mandates coal phase-out by 2050, the Energy Transition Mechanism (ETM) to support early coal power retirement and renewable development and the $21 billion Just Energy Transition Partnership (JETP)
Indonesia's energy transition faces many challenges but has great potential. The nation has every reason to fully commit to this journey under Prabowo's strong leadership and direction, given its rich renewable resources, growing global support and prerequisites to achieve the Golden Indonesia 2045 vision. [7]