Jakarta, March 21, 2025 – The Institute for Essential Services Reform (IESR) welcomes and appreciates the establishment of the Energy Transition and Green Economy Task Force (TEH Task Force) through the Decree of the Coordinating Minister for Economic Affairs Number 141 of 2025. The existence of this Task Force shows the commitment of President Prabowo’s administration in continuing the energy transition agenda that has been designed by the previous administration.
IESR Executive Director Fabby Tumiwa said the formation of the TEH Task Force is a positive signal that the government is prioritizing Indonesia’s energy transition. The Task Force is expected to accelerate the energy transition in accordance with the objectives of the Paris Agreement as well as implement the Bali Energy Transitions Roadmap and Bali Compact, which were agreed at the G20 under Indonesia’s leadership.
“The establishment of the TEH Task Force is also a form of Indonesia’s moral responsibility in implementing the results of the G20 decision, including the nine principles of the Bali Compact and the three priorities in the Bali Energy Transitions Roadmap for the global energy transition, namely ensuring energy access, increasing the use of clean and smart energy technology and encouraging renewable energy funding,” Fabby said.
IESR highlighted the government’s difficulty in achieving renewable energy investment targets that often miss the target. In 2024, the investment only reached USD 1.8 billion, far below the target of USD 2.6 billion. The low investment interest in renewable energy in recent years shows an unfavorable investment climate. Community rejection that occurred in a number of renewable energy projects such as geothermal in Flores, Floating Solar Power Plant in West Sumatra, and Hydroelectric Power Plant increased the risk of renewable energy projects in the eyes of business people and financing institutions.
For this matter, IESR encourages the TEH Task Force to become a platform for coordination between ministries and government agencies to accelerate the energy transition. Through this platform, the government can also find solutions to overcome barriers to renewable energy investment, and design policy reforms that are more supportive of clean energy. In addition, the Task Force is expected to strengthen Indonesia’s role in the implementation of the Just Energy Transition Partnership (JETP) and the Energy Transition Mechanism (ETM), thereby increasing Indonesia’s credibility in managing energy transition financing in the power sector and achieving the electricity sector’s peak emission target by 2030 and net-zero emission by 2050.
IESR believes that the transition from fossil fuels to renewable energy in Indonesia can be done quickly and cost-effectively. Through its Unlocking Indonesia’s Renewable Future study, IESR has identified 333 GW of potential renewable energy projects that are technically and financially feasible in 632 locations. This data can be a reference for the TEH Task Force to highlight renewable energy investment opportunities in Indonesia and be included in the list of projects that can be funded by JETP and ETM to substitute coal-fired power plants (CFPPs).
“Europe will soon impose a carbon tax on goods and services entering the region, signaling that global trade and economic development is moving in a low-carbon direction. Indonesia must ensure its industry is ready to remain competitive. The TEH Task Force plays an important role in accelerating green economy transformation by encouraging decarbonization in the industrial sector. This is a crucial step to ensure Indonesia’s sustainable economic development in the future,” Fabby explained.
As an important step in the energy transition, IESR encourages the Task Force to ensure inclusive communication with various stakeholders, including civil society organizations, businesses, and other private sectors. Active participation from various sectors is key to ensuring a fair, sustainable, and positive energy transition for Indonesia’s future.
