Indonesia’s Energy Transformation Declaration in Jokowi’s Speech | Opinion

On the occasion of the 79th anniversary of the founding of the Republic of Indonesia, President Joko Widodo (Jokowi) delivered a speech, part of which concerned the country’s energy transformation.

In his speech, President Jokowi said that his government has consistently carried out Indonesia’s energy transition carefully and gradually so far. He further stated that the energy transition desired by the government is a fair one that produces energy that is easily accessible and affordable to the public. Are President Jokowi’s claims true?

The short answer is no. From the very beginning, President Jokowi has not taken the implementation of the energy transition seriously. At various international events, President Jokowi often boasts about the Just Energy Transition Partnership (JETP) financing program, which aims to channel funds from developed countries to support energy transition efforts in developing countries. However, he has also said that JETP should not disrupt the entire coal business, thereby blocking fossil fuels.

Almost simultaneously with the launch of JETP, President Jokowi issued Presidential Regulation (Perpres) No. 112 in 2022 regarding the acceleration of renewable energy development to provide electricity. Upon close examination, Perpres 112 appears to be a legal umbrella for the continuation of coal operations through captive or integrated power plants in industrial areas.

Jokowi’s coal-locking technique was then seen in the Comprehensive Investment and Policy Plan (CIPP) for Indonesia’s JETP, launched in November 2023. The CIPP does not include integrated power plants in industrial areas at all. Is this coal-locking consistent with implementing a just energy transition?

Moreover, President Jokowi defines a just energy transition as one in which renewable energy is accessible and affordable to communities. Logically, for energy to be accessible and affordable, it must be produced close to communities. Energy centralization must give way to energy democratization. However, the reality on the ground is different. CIPP ignores community-based renewable energy development and directs its investments towards large-scale renewable energy development. Large-scale renewable energy development reinforces energy centralization and often causes agrarian and environmental conflicts with surrounding communities.

On the other hand, in terms of community-based renewable energy, the research results of the Center for Economic and Legal Studies (Celios) and 350.org Indonesia, titled Opportunities and Challenges for Community-Based Renewable Energy, show that if 50 percent of the US$20 billion JETP funds are allocated to the development of community-scale renewable energy, it can generate 2.18 gigawatts (GW). This means that community-based renewable energy generators are able to replace at least 3.3 units of steam power plant equivalent to Cirebon-1, which has a capacity of 660 megawatts (MW). Moreover, community-based renewable energy is also able to contribute IDR 10.529 trillion to the gross domestic product (GDP) over 25 years.

While community-based renewable energy development will provide Indonesians with more accessible and affordable energy, rich countries and international aid institutions consider it unviable because JETP’s financing structure relies heavily on foreign debt.

President Jokowi’s weak commitment to energy transition is becoming increasingly evident as the government has awarded coal mining concessions to two massive Islamic organizations, Nahdlatul Ulama (NU) and Muhammadiyah. President Jokowi must recognize that the problem with coal is not limited to the areas where it is mined, but also to the burning of coal, which increases greenhouse gas emissions, worsening the climate crisis. This clearly weakens President Jokowi’s commitment to energy transition.

The involvement of NU and Muhammadiyah in the dirty business of coal power not only serves as a laundering machine for the environmental sins of the coal industry, but will also weaken the environmental movement of Indonesian civil society.

In the future, the environmental movement will clash with NU and Muhammadiyah. As stakeholders in the coal industry, NU and Muhammadiyah will almost certainly reject any clean energy transition ideas because it would disrupt their business interests. It is possible that both mass organizations will use religious narratives to stop the environmental movement from spreading the narrative of energy transition. This use of religious narratives to defend coal could lead to physical and verbal violence against environmental activists. Is this what President Jokowi meant by carefully implementing the energy transition?

We now fear that the practice of making only declarative declarations about the energy transformation will continue under the next president of Indonesia, Prabowo Subaianto. In international forums, Prabowo has regularly emphasized that his government is a continuation of President Jokowi’s government. This means that there will be no changes in Prabowo’s government when it comes to energy policy.

One reason the public doubts Prabowo’s commitment to the energy transition is the new president’s history and ties to coal entrepreneurs. During the 2024 presidential election, coal company boss Garibaldi “Boy” Thohir confidently declared his support for Prabowo. In fact, according to the Mining Advocacy Network (JATAM), Prabowo Subianto was once a shareholder in a coal company with a concession area of 4,793 hectares in Berau, East Kalimantan. What kind of just energy transition can we expect from Prabowo Subianto, given his ties to the dirty coal industry?

Given these realities, we expect Prabowo to continue Jokowi’s platitudes about the energy transition for the next five years. Dark clouds are gathering over Indonesia’s environmental protection. The only way to dispel them is to invite the public to continue to have their say on what a just energy transition should look like. But it is possible that in the future, having a say will become a luxury, as it was when President Suharto, who is also Prabowo Subianto’s former father-in-law, ruled Indonesia.

Firdaus Cahyadi is the interim team leader for Indonesia for the climate campaign group 350.org.