Driving the energy transition in Indonesia

Context

Energy demand in Indonesia is rising due to economic growth. At the same time, the country is committed to lowering CO2 emissions, for example with the Just Energy Transition Partnership (JETP).

The government and administrative bodies lack the necessary institutional and technical capacities to plan and implement the expansion of renewable energy effectively. In industry too, there is scope to improve energy efficiency.

Objective

Indonesia is able to drive forward the expansion of renewable energy. In partnership with Germany, it is able to reduce its CO2 emissions and achieve a carbon-neutral energy supply.

Approach

The project cooperates closely with Indonesia’s Ministry of Energy and Mineral Resources (MEMR) to create the statutory and regulatory conditions for renewable energy and to reduce energy consumption and improve energy efficiency.

With a focus on the island network in Sulawesi, the project advises the state electricity provider (PLN) on the technical and economic challenges involved in expanding and operating the power grid with renewables such as solar and wind energy. PLN employees receive gender-responsive training.

The project supports Indonesia in creating an emissions trading scheme under which companies have to buy certificates for their CO2 emissions. It therefore also supports the transition to climate-friendly technologies in the refrigeration industry, where there is great potential to reduce CO₂ emissions.

The energy partnership between Germany and Indonesia has a local secretariat, the German–Indonesian Energy Cooperation Hub, which organises discussions between the two countries and provides expertise. This promotes technical and political dialogue between the countries and supports the JETP.