Jakarta, September 12, 2024 – The Civil Society Coalition for a Just Energy Transition has submitted eight quick-win recommendations for the first 100 days of the Prabowo–Gibran administration. These recommendations aim to support higher-quality and more inclusive economic growth by accelerating the energy transition toward a green economy, thereby improving public welfare and environmental sustainability, in line with the Prabowo–Gibran administration's Asta Cita vision and mission.
During a discussion facilitated by the Katadata Insight Center (KIC) with the Prabowo–Gibran 8% Growth Team, the Coalition emphasized the importance of energy policies that prioritize renewable energy rather than so-called new energy sources such as nuclear power, coal downstreaming, carbon capture and storage/utilization (CCS/CCUS), and natural gas, which are considered highly emissive and costly. Therefore, the Coalition called for a review of existing energy policies, including the National Energy Policy and the Draft New and Renewable Energy Bill.
"The energy transition has the potential to create more than one million green jobs by 2050 while fostering more inclusive and environmentally sustainable economic growth," said Indra Sari Wardani, Acting Program Director of Koaksi Indonesia. "This transition can also contribute to improving community livelihoods and advancing the broader green economy."
Second, the incoming administration should immediately formulate a roadmap for the early retirement of coal-fired power plants (CFPPs) and prepare the necessary social protection measures, as mandated under Presidential Regulation No. 112 of 2022. Agung Budiono, Executive Director of CERAH, stated that the faster coal-fired power plants are retired and replaced with renewable energy, the greater the economic benefits for Indonesia.
"Research conducted by CELIOS and CERAH on the economic impacts of the early retirement of Cirebon-1, Pelabuhan Ratu, and Suralaya coal-fired power plants projects an increase in Indonesia's Gross Domestic Product (GDP) of up to IDR 82.6 trillion," said Agung.
"In the context of early coal plant retirement, it is also important to highlight the direct impacts on vulnerable communities, particularly workers, informal sector workers, and communities that depend on this industry. Social protection policies, retraining programs, and the creation of new local employment opportunities must become integral parts of the transition to ensure that it does not further undermine the welfare of those most affected," added Tunggal Pawestri, Executive Director of Humanis Foundation.
Third, the Coalition called for financing incentives to support the transition to renewable energy, alongside expanded financing access and capacity-building for micro, small, and medium enterprises (MSMEs) and cooperatives to develop community-based renewable energy projects. These measures are expected to foster greater energy independence at the community level while addressing growing future energy demand.
Fourth, environmental, social, and governance (ESG) standards should become mandatory requirements for investment licensing.
"Without strong safeguards, renewable energy development can have significant consequences for both the environment and local communities. Moreover, global financial institutions are placing increasing scrutiny on ESG standards when financing projects," said Irfan Bakhtiar, Director of Climate and Market Transformation at WWF-Indonesia.
Evaluation of Existing Policy Programs
The Civil Society Coalition for a Just Energy Transition also emphasized the need to evaluate policies implemented under President Joko Widodo's administration. The incoming government should reassess the biofuel blending mandates—50% biodiesel (B50) and 10% bioethanol (E10)—as well as the biomass co-firing program at coal-fired power plants. Both initiatives should be reviewed based on social justice considerations, environmental carrying capacity, and the competitiveness of domestic industries.
Nadia Hadad, Executive Director of Madani Berkelanjutan Foundation, explained that the B50 program requires reevaluation because Madani's research indicates that Indonesia's environmental carrying and absorptive capacities have reached critical limits. This means that further land conversion for oil palm plantations—the primary feedstock for biodiesel—must be halted.
Anggi Prayoga, Campaigner at Forest Watch, added that biomass co-firing effectively prolongs the lifespan of coal-fired power plants while encouraging further forest conversion to meet wood biomass production targets through Energy Plantation Forests (HTE). As a result, Indonesia would accumulate additional emissions debt. According to him, the energy transition should not come at the expense of forests.
Another policy requiring evaluation concerns Indonesia's Carbon Economic Value (NEK) framework. The incoming administration should ensure that the policy includes robust safeguards capable of supporting the country's net-zero emissions targets while strengthening transparency and accountability in its implementation. This is essential to accelerate industrial decarbonization and ensure that carbon revenues are directed toward green sectors to support the green economy.
"It is necessary to strengthen regulations and oversight of safeguard mechanisms within the Carbon Economic Value framework, including mandatory instruments such as Environmental Impact Assessments (AMDAL) and environmental permitting. This is crucial to prevent social and environmental risks arising from corporate implementation of carbon market mechanisms while enhancing transparency and accountability," said Raynaldo G. Sembiring, Executive Director of the Indonesian Center for Environmental Law.
The Coalition stressed that a just energy transition can only be achieved through meaningful public participation.
"Communities must be meaningfully involved in energy policymaking to ensure that policies respond to local needs and can be implemented effectively. A just energy transition should not only support economic growth targets but also create a more sustainable and equitable future for all Indonesians," concluded Bhima Yudhistira, Executive Director of CELIOS.
Media Contacts
Indra Sari Wardani
Acting Program Director, Koaksi Indonesia
+62 811-1847-095Sandra Winarsa
Energy and Climate Advisor, Humanis Foundation
+62 812-9133-062Chrisandini
Energy Project Leader, WWF Indonesia
+62 815-8019-797
