Indonesia

Indonesia falls six places to rank 42nd in this year’s CCPI, with an overall low rating. The country receives a medium rating in Renewable Energy and low in GHG Emissions, Energy Use, and Climate Policy.

In 2024, Indonesia released a draft of its second Nationally Determined Contribution (NDC), aiming for net zero by 2060 and peaking emissions in 2030–2035. Indonesia previously had no peak targets and the CCPI national experts criticise that the NDC draft is not aligned with the Paris Agreement. Indonesia has a new president and cabinet since October 2024.

A Mixed Bag of Energy Policies, Results, and Targets

In November 2023, the Comprehensive Investment and Policy Plan (CIPP), outlining projects and strategies to support the Just Energy Transition Partnership (JETP), was launched. But the CCPI experts say it lacks a clear prioritisation of sectors and individual initiatives. A revised CIPP is slated to be released in time for the 2024 UN Climate Change Conference (COP29). Our experts hope it will be a more focused and action-oriented document. Indonesia is currently revising its Electricity Supply Business Plan (RUPTL). In the RUPTL draft, the country indicates plans to add 75% renewable energy capacity between 2024 and 2033. The last renewable energy target of a 23% share by 2025 will, however, be missed. The experts find that incentives for electric vehicles are working well.

Indonesia still relies heavily on fossil fuels. In 2023, coal accounted for 40.5% of the energy mix, while renewables were just 13.1%. A 2050–2060 phase-out is planned for coal. Indonesia is among the 10 countries with the largest developed coal reserves, and it currently plans to increase its gas production. On a positive note, the experts note that the Indonesian government will not approve any new coal-fired power plants. Coal plants already included in the latest electricity business plan, however, can still be built.

Ongoing Human Rights and Other Issues Persist

There also are ongoing questions about human rights violations, particularly related to land-intensive projects, such as biofuels, hydropower, geothermal initiatives, and the supply chain for renewable technologies, including mineral mining. Biomass is gaining importance as an energy source and biofuel in Indonesia, and the new president supports its potential for increased use. However, the experts question its effectiveness in mitigating climate change and raise concerns about the risks of deforestation. Illegal logging and land clearing also continue to be issues for Indonesia.

The experts recommend increasing climate ambitions in the second NDC to achieve alignment with the Paris Agreement. The coal phase-out also should be better structured and financed, with a cap or deadline for captive coal power plant construction.

Key Outcomes

CCPI Experts

• Mutya Yustika (Institute for Energy Economics and Financial Analysis)
• Ahmad Ashov Birry (Trend Asia
• Fabby Tumiwa (Institute for Essential Services Reform (IESR))