Response to Indonesia’s Just Energy Transition Partnership (JETP) Progress Report 2025
Raising emission reduction targets and stronger policy alignment can help Indonesia’s energy transition ambitions thrive.
Summary
Stronger policies and targets policies are required for JETP to drive renewable energy growth
Indonesia will benefit from prioritising investment in renewable energy and cleaner forms of flexibility, both in the on-grid and captive sectors.
Indonesia’s Just Energy Transition Partnership (JETP) secretariat sought public consultation for the Progress Report 2025. The document includes policy recommendations to strengthen the domestic supply chain of renewable energy through local content requirements, decarbonise the captive sector, energy efficiency and electrification, as well as mainstreaming of just transition and carbon pricing strategies.
The JETP scenario proposes 53% of fossil fuel capacity by 2030, comprising 30% of coal and 23% of gas. However, increased reliance on fossils will be costly. Indonesia will benefit from prioritising investment in clean forms of flexibility, including storage and grid connections between islands.
Ember’s recommendations
We propose the following additional recommendations:
The document sets out an on-grid peaking emission scenario starting in 2030. However, with only 1.6 gigawatts (GW) of coal power plants being considered for early retirement and reuse, considerably less than the earlier proposition of 5.5 GW in 2023, it remains to be seen whether the power system can achieve the target. The scenario should also include the captive sector that is projected to have an emission decline starting in 2037.
Responding to transition finance as an enabler for Indonesia’s transition to a sustainable economy – Indonesia would benefit from transition finance guidance. However, this modality should be combined with the strengthening of the regulatory framework in the captive sector and its enforcement. Decarbonisation of captive power could be supported by amending the Perpres 112/2022 and including an emission cap for the captive sector.
The document includes recommendations to incorporate a Just Transition framework into JETP projects. At the same time, attention should be given to coal-producing provinces to provide them with alternative sources of economic revenue.
Supporting materials
Downloads
Ember’s formal feedback to the JETP Secretariat was submitted on 24 November 2025. Download the full policy paper and letter.