Media Briefing: One-year on; energy transition recommendations from the ETP Forum

Overview

ON THIS PAGE

In late 2024, CPD joined our Energy Transition Policy Development (ETP) Forum partners in Jakarta to brief the media on our recommendations for the new Prabowo government, with a focus on practical steps to support Indonesia’s energy transition.

A year later, the ETP Forum returned to the media to take stock of progress against the original nine recommendations and set out an updated agenda for the year ahead, aimed at accelerating a fair and prosperous energy transition in Indonesia.

In 2025, there were some positive signs, including an increase in Indonesia’s renewable energy mix to 16 per cent. However, the country remains short of the annual progress required to meet its Paris Agreement commitments, with government ambition not yet consistently reflected in national policy direction.

Meeting Indonesia’s energy transition goals will require clearer direction and stronger action, particularly to reform energy subsidies, address unequal access to benefits, unlock clean energy investment and establish a practical roadmap for the early retirement of coal-fired power plants.

The second year of the Prabowo–Gibran administration will be pivotal in determining whether energy policy reforms can deliver real emissions reductions, strengthen energy security, support communities and put Indonesia on a credible path to achieving its energy transition goals.

Overview of recommendations

Energy subsidy reforms

  1. Subsidies should be shifted from commodity-based (such as those applied to LPG gas bottles) to direct beneficiary-based (paid directly to recipients) to reduce costs and improve fairness.
  2. Savings from reduced spending on subsidies should then be redirected to clean energy investments, particularly those designed to support regional, rural, and otherwise underdeveloped communities.

Governance and regulation

  1. Reforms should be implemented that more effectively separate the roles of the market regulators and energy operators. This should increase transparency and strengthen investor confidence.
  2. An Energy Transition Task Force should be established to strengthen inter-agency coordination, prevent policy fragmentation and accelerate decision-making processes.
  3. Indonesia’s carbon credit scheme should be expanded to cover industrial and transportation sectors not currently included.

Strengthening commitments and increasing investment

  1. Indonesia must update its targets across its national energy development plans to align with President Prabowo’s vision of 100% renewable energy by 2040 or earlier.
  2. A significant increase in investment in R&D for new technologies is necessary to accelerate the adoption of clean energy, such as batteries for public transportation, green hydrogen, and ammonia as an alternative fuel.

Environmental standards and social impacts

  1. Consistency across Environmental, Social, and Governance (ESG) standards should be improved to prevent environmental degradation and improve economic benefits for local communities.
  2. There should be more focus on ensuring the energy transition is just and inclusive. Considerations of gender equality, disability and social inclusion should be integrated into national energy policy, and a just transition framework should be developed that ensures the protection of workers, communities and vulnerable groups.

Documents from media briefing (Bahasa Indonesia)

About the Energy Transition Policy Development Forum

The ETP Forum comprises CPD, Climateworks Centre, the Indonesian Research Institute for Decarbonisation, the Institute for Essential Services Reform, the Purnomo Yusgiantoro Centre and the International Institute for Sustainable Development, and was established in 2022. The ETP Forum helped coordinate support to Indonesia’s G20 Presidency in 2022 and ASEAN Chairship in 2023.

ON THIS PAGE

Search