Powering Prosperity: A framework for a fair and inclusive energy transition in Indonesia is a report from the Centre for Policy Development that addresses Indonesia’s energy transition and the often overlooked social and human dimensions of decarbonisation and moving away from fossil fuels.
Drawing on lessons from Australia’s energy transition and extensive research across Indonesia, the report offers a practical framework to guide a just transition in Indonesia—one that not only reduces emissions but drives economic opportunity, protects the most vulnerable, and ensures all Indonesians can benefit from the shift to a low-emissions economy.
The framework is built on three key principles that, taken together, support the whole-of-society approach needed to build lasting support, deliver social benefits and economic growth, and make the transition not only possible but beneficial for all.
Powering Prosperity is a report from the Centre for Policy Development that provides a practical framework to guide a fair and just transition in Indonesia.
Powering Prosperity explores not only why Indonesia’s energy transition is essential—but why making it a just transition is even more critical. By analysing the current landscape and the scale of the challenge ahead, the report argues that without a clear commitment to fairness, equality, and a strategy to ensure no one is left worse off, the transition risks deepening inequality, fuelling social unrest, and failing to secure public support.
The report examines the risks and opportunities facing three key groups—regions, households, and workers—and outlines what’s needed to ensure they are supported through the transition.
It also provides practical case studies showing how the framework can be applied in three high-impact areas: expanding access to renewable energy in remote communities, developing Indonesia’s critical minerals and EV battery industries, and phasing out coal-fired power plants.
Powering Prosperity’s just transition framework outlines three core principles to guide a fair energy transition in Indonesia:
The framework should be applied to all aspects of Indonesia’s energy transition to ensure it is effective and sustainable.
The report also provides practical recommendations, steps the Indonesian government can take now to support the implementation of the just transition framework:
Indonesia is on track to become one of the world’s largest economies by 2040—but its growth has relied heavily on emissions-intensive industries. As climate change poses mounting risks and the world moves away from fossil fuels, Indonesia must decarbonise to stay competitive.
The government has set ambitious climate targets, including phasing out coal and reaching net zero by 2060—offering a chance to lead in green technology and unlock new economic opportunities. But success will require more than hitting emissions goals; it must be a just transition that supports all affected communities—fossil fuel workers, farmers, households and regions alike.
With the right approach, Indonesia can lift living standards, grow its economy, and lead the world in building a fair, inclusive path to net zero.
