Enviro News Asia, Jakarta — Indonesia needs to translate its national clean energy ambitions into locally tailored strategies as regional differences in energy demand, economic conditions, renewable resources, and institutional capacity shape the pace of the energy transition.
Institute for Essential Services Reform (IESR) Chief Executive Officer Fabby Tumiwa said local governments should play a stronger role in implementing a just energy transition, even though their authority over the national energy system remains limited.
Fabby made the statement during an online session titled Clean Energy Transition in Asia: Stories of Progress from the Ground Up, organized by the Fossil Fuel Treaty Initiative, CANSEA, and the NGO Forum on Cambodia as part of the Just Transition Forum Asia on September 3.
Indonesia faces a growing energy demand driven by economic and industrial development while its electricity system remains heavily dependent on coal. At the same time, the country has substantial renewable energy resources, creating opportunities to accelerate the shift toward cleaner energy.
Fabby estimated Indonesia’s solar energy potential at between 3,300 and 20,000 GWp, in addition to geothermal, hydropower, wind, and bioenergy resources.
However, he warned that large renewable energy potential alone would not guarantee a successful transition.
“High dependence on fossil fuels risks creating asset lock-in, where energy systems remain tied to fossil-based assets and infrastructure for too long, slowing the shift toward cleaner energy,” Fabby said.
Regional Strategies Matter
Indonesia’s geography presents a particular challenge to energy transition planning. The country has 38 provinces with different energy requirements, economic structures, renewable energy resources, institutional capacities, and social conditions.
Fabby said these differences mean Indonesia cannot rely on a single transition pathway for all regions.
The national and regional energy plans provide an important framework for translating national objectives into local priorities. While the National Energy General Plan (RUEN) establishes national policy directions, including energy-mix targets, electricity development, transmission, pricing, and infrastructure investment, regional energy plans (RUED) can adapt those priorities to local circumstances.
“Most implementation of the energy transition will actually take place at the regional level,” Fabby said.
Although provincial governments do not control the national energy system, they can influence the transition through regional energy policies and regulations, small-scale procurement, energy-efficiency programs in public facilities, and coordination with businesses and communities.
Different Regions, Different Priorities
Fabby pointed to Central Java and Bali as examples of why local circumstances should shape energy-transition strategies.
In Central Java, industrial activity is a major consideration because energy demand remains closely connected to coal use. The transition therefore needs to be integrated with industrial transformation and efforts to develop cleaner production systems.
A regional strategy can include comprehensive studies, stronger engagement with provincial stakeholders, technical discussions and knowledge-sharing, capacity building, and multi-stakeholder coalitions.
Bali presents a different context because tourism plays a major role in its economy. Fabby said the energy transition there could be linked more closely with sustainable island development, decentralized energy systems, and environmental protection.
Protecting the environment is particularly important for Bali because natural and environmental assets are closely connected to the tourism economy.
Building a Just Transition
Fabby stressed that regional energy planning should not focus solely on energy infrastructure and emissions reduction.
A just transition should also address human rights, gender equality, social protection, and meaningful public participation in decision-making.
Regional governments can help ensure that energy transition policies produce tangible benefits for communities through new economic opportunities, job creation, better energy access, increased investment, and stronger local energy resilience.
“Data and credible studies are an important foundation so policies are not built on assumptions,” Fabby said.
He also called for stronger coordination among stakeholders because energy transition involves multiple sectors and requires cooperation between government, businesses, universities, civil society organizations, and local communities.
From National Targets to Local Action
IESR recommends developing subnational energy-transition roadmaps that reflect local conditions while remaining aligned with national targets.
Such roadmaps should begin with assessments of regional economic structures, energy demand, renewable energy potential, institutional capacity, and community characteristics. They should also incorporate just-transition principles from the planning stage.
Fabby said this approach would allow local governments to move beyond simply implementing national policies and become active drivers of energy transformation.
The effectiveness of Indonesia’s clean energy transition will ultimately depend on its ability to connect national targets with the realities and authorities of individual regions.
A locally grounded approach could help ensure that the transition delivers not only lower emissions and cleaner energy systems, but also economic opportunities, employment, improved energy access, and greater community participation in regional development. (*)
