ENERGY TRANSITION THEMES
Industry Decarbonisation
Indonesia, as ASEAN’s largest economy, is pursuing its Vision 2045 to become a fully industrialized and environmentally sustainable nation. Industry remains central to economic growth, contributing significantly to GDP, exports, and investment. However, it also accounts for a quarter of national emissions. Targeting a 9 million ton CO₂e reduction in the IPPU sector, Indonesia is encouraging energy-efficient and low-carbon industrial practices, aligned with global climate commitments and mechanisms such as CBAM.
ENERGY TRANSITION THEMES
Power System Transformation
As an archipelago with over 600 power grids, Indonesia faces unique complexities in planning and operating its electricity systems. Traditional grids—originally designed around fossil-based and hydro dispatchable plants—must now adapt to the growing share of variable renewable energy like solar and wind. This shift requires adjustments in grid operations, especially as distributed energy resources, such as rooftop solar, connect to medium and low-voltage networks. The changing role of distribution grid operators is crucial to ensuring the grid remains reliable and flexible.
Transforming power systems is a critical enabler of Indonesia’s broader energy transition. To successfully scale renewable energy, effective integration and modernisation of grid infrastructure are essential. Strengthening technical capacity and adopting advanced planning approaches will help Indonesia transition its diverse and decentralised grid landscape toward a net-zero future.
Our Mission
GIZ supports Indonesia towards the transformation of more than 600 power systems of various sizes from central, fossil fuel-based power generation to decentralised, renewable energy-based power generation.
Overall Objective of Thematic Area
What We Do
Implementation Approach
Policy Advisory
Support for MEMR—particularly EBTKE and DJK—in developing policies and regulations to scale up renewable energy and modernise the power sector.
Power System Studies
In-depth operational and long-term planning studies based on real conditions in regions like Sulawesi and NTT to guide smart, data-driven grid transformation.
Capacity Development
Strengthening the technical capabilities of MEMR and PLN at both central and regional levels to integrate renewable energy and manage evolving grid operations.
Integrated Energy Planning
Collaborative energy planning for selected cities, provinces, and islands to align regional needs with national energy transition goals.
Contribution to National Targets
Supporting the implementation of NZE 2060 roadmap, achieving 44% renewable energy by 2030 under JETP, advancing Vision 2045, enabling industrial decarbonization by 2050, and operationalizing Presidential Regulations No. 98/2021 and 112/2022
Project List
Our Project
Case
Clean, Affordable and Secure Energy for Southeast Asia (CASE) – Indonesia Component
Clean, Affordable and Secure Energy for Southeast Asia (CASE) – Indonesia Component
- Commissioned by: Federal Ministry for Economic Affairs and Climate Action, International Climate Initiative
- Regional Focus: Indonesia (ASEAN)
- Volume: 5.18 Million EUR
- Political Patner: Bappenas, EBTKE & DJK, DEN, OJK, Kemenko Perekonomian, SOEs, local governments, donors, ac ademia, NGOs
- Overall term: 2020 to 2027
Impact Stories
Local Heroes, Global Goals
Strategic Steps Toward Industrial Decarbonisation
Implementation Approach
We are the first company to connect a private solar power plant to the "green" tariff in the city
News and Events
Latest Updates in Indonesia’s Energy Transition
Thematic Partners
National Partners & Collaboration
