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

Just Energy Transition

Despite its vast renewable energy (RE) potential of over 3,700 GW, Indonesia has only utilized about 0.3% of it—making up just 12.3% of its total primary energy supply in 2022, far below the 2025 national target of 25%. Meanwhile, energy-related emissions are projected to account for 58% of national greenhouse gas (GHG) emissions by 2030, highlighting the urgency of scaling up clean energy. The government has responded with regulatory steps, such as Presidential Regulation 112/2022, which outlines a coal phase-down strategy and accelerates RE development, aligned with Indonesia’s net-zero emissions (NZE) target by 2060 and power sector emissions peaking by 2030.

However, achieving a just and inclusive energy transition requires more than phasing out fossil fuels. While public support for RE is high, policy decisions must address the economic and social impacts in fossil-dependent regions and sectors. This includes ensuring energy affordability, supporting vulnerable communities, and promoting local economic diversification. A successful transition depends on inclusive, evidence-based policymaking and the development of innovative business models that make clean energy accessible and beneficial for all segments of society.

Our Mission


GIZ supports Indonesia in increasing the share of renewable energy by gaining public acceptance for a fossil fuel phase-out and replacement, as well as building innovative solutions for the shift away from fossil fuels towards affordableand clean energy for all.

Overall Objective of Thematic Area
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What We Do

Implementation Approach

Policy Advisory

Support for national and regional stakeholders—including Bappenas, MEMR, and fossil-dependent provinces—in developing inclusive, evidence-based policies for economic diversification and a just energy transition.

Technical Advisory

Guidance for businesses in adopting renewable energy solutions to reduce reliance on fossil fuels and drive sustainable transformation.

Knowledge Management

Promotion of innovative models and enabling conditions for affordable, clean energy expansion through shared insights and practical tools.

Capacity Development for Vulnerable Groups

Empowering communities and workers affected by the energy shift to actively participate in and benefit from the green economy.

JETP Framework Support

Assistance in shaping and implementing the Just Transition Framework under the Just Energy Transition Partnership (JETP).

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

Impact Stories

Local Heroes, Global Goals

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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

  • 01 Policy advisory for MEMR, MoI and KKP on energy eficiency and renewable energy for industry
  • 02 Capacity building for corporates on energy management and the financial sector on sustainable energy finance
  • 03 Matchmaking between private sector stakeholders/industries, technology providers and investors
  • 04 Energy audits and techno-economic pre-feasibility studies
  • 05 Demonstration projects/first movers: Industry Champions, NZE City Pioneers, and Solar Cold Storages and related Supply Chains
News and Events

Latest Updates in Indonesia’s Energy Transition

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Thematic Partners

National Partners & Collaboration

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