Indonesia’s push for energy transition is being framed as more than just environmental policy—it’s envisioned as a catalyst for strong, inclusive economic growth. The government, under President Prabowo, aims to reach an 8% economic growth rate and fulfill the vision of Indonesia Emas 2045, and sees accelerating the move toward clean energy as essential. This includes meeting international climate commitments (such as the Paris Agreement), limiting global warming to under 2°C, and opening up opportunities for investment and new industries. Key voices, like Prof. Mari Elka Pangestu and Matthew Downing (from the UK Embassy), emphasize that political will, coherent policy at both national and regional levels, and reforms related to energy subsidies, carbon regulation (including emission trading and carbon tax), are crucial in order to steer Indonesia toward a fair, inclusive, and ambitious energy transition.

Concrete benefits of accelerating this transition are grouped into five pillars. First, massive infrastructure investment—solar, wind, biomass, geothermal plants, smart grids, and energy storage—will draw in trillions of rupiah. Second, Indonesia could grow its manufacturing sector to become a stronger part of global supply chains tied to clean energy. Third, millions of green jobs could emerge, ranging from technicians and engineers to construction workers. Fourth, public health and productivity would improve as air pollution declines—less disease, lower health costs, better quality of life. Fifth, energy security would be strengthened: less dependence on fossil fuel imports, greater resilience against global price volatility, and more stable foreign exchange savings. To make this real, reforms are needed in areas like electricity regulation, cost-reflective pricing, integrating private and community energy providers, managing coal plant retirements, and ensuring fair access to power transmission infrastructure. 

Source: https://iesr.or.id/transisi-energi-sebagai-mesin-pertumbuhan-ekonomi-baru/