Indonesia will celebrate its 79th independence this year, which is a very important milestone in the country’s development. Since independence, the country has been able to grow its economy gradually. From 1967 to 2023, the country’s GDP growth has increased by more than 24,000% to USD 1.37 trillion (World Bank, 2024). To support its economic development, Indonesia has utilized its rich natural resources, including in the energy sector. For example, the fossil fuel extraction sector contributes 7.84% or IDR 1,637 trillion to the country’s GDP in 2023 (BPS, 2024). Although it is not the majority of the economy, the data shows that Indonesia is still economically dependent on fossil fuels.
Beyond the economic sector, fossil fuels are still the main source of Indonesia’s energy mix. Coal is the main source of Indonesia’s energy (40%), followed by oil (40%) and gas (17%) (MEMR, 2024a). As a result, Indonesia’s emissions from the energy sector continue to increase every year. From 2000 to 2022, Indonesia’s emissions from the energy sector keep increasing by 126%, while emissions from another major contributor (i.e. forestry and land use) decrease (MOEF, 2024). This raises the question of whether we should rely on fossil fuels for our economy and, more importantly, for our energy.
We should realize that our dependence on fossil fuels can become ecstatic. At some point, fossil fuels can indeed generate more income, especially as Indonesia is overflowing with fossil fuel resources. For example, Indonesia still has coal reserves of 31.71 billion tonnes in 2023 (MEMR, 2024b), of which Indonesia can explore more and use the reserves for many years to come. But times have changed. The world needs to start weaning itself off fossil fuels in order to mitigate climate change exacerbation. In fact, this situation can put Indonesia in a corner because it still uses fossil fuels for many aspects of life.
This is indeed a difficult position for a country like Indonesia to be in, given its rich fossil fuel resources. However, the situation has changed and science has shown other ways that countries like Indonesia can begin to move away from fossil fuel dependency. Rather than seeing this moment as a threat to its economy, Indonesia should be thinking more deeply about what can be changed with an energy transition to clean and renewable energy. In the past, our focus on energy use has been on its contribution to the economy. But we often forget the impact of fossil fuel energy systems that are not inclusive and environmentally friendly. For example, the operation of coal-fired power plants (CFPPs) has caused illness and even death for many people due to the pollutant (IESR & CREA, 2023). By transitioning toward clean and renewable energy, Indonesia can actually mitigate the exacerbation of these situations.
Furthermore, it is important to remember that Indonesia is not only rich in fossil fuel resources, but also has great potential for renewable energy. Indonesia has more than 3,000 GW of solar energy potential and 75 GW of hydropower potential (IRENA, 2022). The development of renewable energy by 2050 may indeed lead to the loss of 1.3 million jobs, but it also offers a greater opportunity to create 3.2 million jobs (IESR, Agora Energiewende, & LUT University, 2021). Understanding this situation, Indonesia should start accelerating towards more renewable energy development in the country, rather than just focusing on maintaining the position of fossil fuels.
In the momentum of celebrating the country’s independence, the spirit to wake up from fossil fuels and their negative externalities should emerge. It should be replaced by the spirit to support energy transitions that can contribute comprehensively to Indonesia’s sustainable development and mitigate the exacerbation of climate change. For the betterment of future generations of Indonesia, we should start amplifying this spirit.
