[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 targets through accelerating the energy transition to realize a green economy that enhances public welfare and environmental sustainability, in line with Prabowo–Gibran’s vision and mission under the Asta Cita agenda.
In a discussion facilitated by Katadata Insight Center (KIC) together with the Prabowo–Gibran 8% Growth Team, the Civil Society Coalition for a Just Energy Transition emphasized the importance of energy policies that prioritize renewable energy, rather than “new energy” such as nuclear power, coal downstreaming, carbon capture technologies (CCS/CCUS), and natural gas, which are high-emission and costly. Therefore, there is a need to evaluate energy sector policies, including the National Energy Policy and the Draft Law on New and Renewable Energy.
“An energy transition has the potential to create more than one million green jobs by 2050, while also driving more inclusive and environmentally friendly economic growth,” said Indra Sari Wardani, Acting Program Director of Koaksi Indonesia. “This can also contribute to improving community livelihoods and advancing a broader green economy.”
Second, the new president must immediately formulate a roadmap for the early retirement of coal-fired power plants (CFPPs) and prepare the necessary safety nets, as a follow-up to Presidential Regulation No. 112 of 2022. Agung Budiono, Executive Director of CERAH, stated that the faster early retirement of CFPPs is implemented and replaced with renewable energy, the greater the economic benefits for Indonesia.
“Research findings by Celios and CERAH regarding the economic impact of early retirement of the Cirebon-1, Pelabuhan Ratu, and Suralaya coal-fired power plants project an impact on gross domestic product (GDP), with an increase of up to IDR 82.6 trillion,” said Agung.
“In the context of early retirement of coal-fired power plants, it is also important to highlight the direct impact on vulnerable communities, particularly workers, informal groups, and communities dependent on this sector. Social protection policies, retraining programs, and the creation of new local jobs must be an integral part of the transition, so as not to worsen the welfare of those most affected,” added Tunggal Pawestri, Executive Director of Humanis Foundation.
Third, financing incentives are needed to support the shift to renewable energy, as well as to empower and expand access to financing for MSMEs and cooperatives to develop community-based renewable energy. These measures are expected to foster energy independence at the community level and anticipate future growth in energy demand.
Fourth, environmental, social, and governance (ESG) aspects must be made a requirement for obtaining investment permits. “Without strong safeguards, renewable energy development can bring significant consequences for the environment and local communities. Moreover, global financial institutions are increasingly stringent in scrutinizing ESG aspects when channeling project financing,” said Irfan Bakhtiar, Director of Climate and Market Transformation at WWF-Indonesia.
Evaluation of Policy Programs
The Civil Society Coalition for a Just Energy Transition also highlighted the need to evaluate programs implemented during President Joko Widodo’s administration. The president-elect needs to review the biofuel programs, namely the 50% biodiesel blending mandate (B50) and 10% bioethanol (E10), as well as the biomass co-firing program at coal-fired power plants. Both programs must take into account social justice aspects, environmental carrying capacity, and the competitiveness of domestic industries.
Nadia Hadad, Director of Yayasan Madani Berkelanjutan, explained that the B50 program must be re-evaluated because Madani’s study shows that environmental carrying capacity and assimilative capacity are already at critical thresholds. This means that the opening of new land for oil palm plantations as feedstock for biodiesel must be halted.
Anggi Prayoga, Forest Campaigner at Forest Watch, added that co-firing practices will in fact extend the lifespan of coal-fired power plants and encourage forest expansion to meet wood biomass production targets through Energy Plantation Forests (HTE). As a result, Indonesia will incur an emissions debt. According to him, the energy transition should be carried out without destroying forests.
Another policy that needs evaluation relates to the Carbon Economic Value (NEK) mechanism. The new president must ensure that this NEK policy has a strong safeguard framework and is capable of supporting the achievement of carbon neutrality targets, while also promoting transparency and accountability in its implementation. This is necessary to ensure that industrial sector decarbonization can be achieved promptly and that carbon funds are allocated to green sectors to realize a green economy.
“There needs to be mapping to strengthen regulations and oversight of the implementation of safeguard instruments within the NEK mechanism, including mandatory instruments such as Environmental Impact Assessments (AMDAL) and licensing instruments, so as to avoid social and environmental risks arising from NEK implementation by corporations and to enhance transparency and accountability in NEK implementation,” said Raynaldo G. Sembiring, Executive Director of the Indonesian Center for Environmental Law.
The implementation of a just energy transition can be achieved through public participation. “There needs to be meaningful and active public engagement in the formulation of energy policies to ensure that policies are responsive to local needs and effective in implementation. The energy transition is expected not only to support economic targets, but also to create a more sustainable and just future for all Indonesian people,” concluded Bhima Yudhistira, Executive Director of Celios.
Media Contacts:
Indra Sari Wardhani, Acting Program Director, Koaksi Indonesia, 0811-1847-095
Sandra Winarsa, Energy and Climate Advisor, Yayasan Humanis, 0812-9133-062
Chrisandini, Energy Project Leader, WWF Indonesia, 0815-8019-797
