Rhetoric or Reality : Aligning Economic Growth with Energy Transition
Indonesia is at a crucial moment to execute its ambitious energy transition commitments. With President Prabowo Subianto’s pledge to phase out fossil fuels within 10–15 years and shift to 100% renewable energy, the political direction has been set. The IETO 2026 Report provides a comprehensive assessment of the current state of Indonesia’s energy transition, highlighting the vast gap between announcement and implementation.
Three main constraints are impeding progress: fragmented grid infrastructure, weak policy coordination among government agencies (where renewable targets conflict with PLN’s coal plans), and tight financing despite the injection of JETP funds.
However, real and significant opportunities are open. Indonesia possesses 7,700 GW of solar potential that is largely untapped, significant geothermal potential, and underutilized wind resources. Furthermore, Indonesia is a key player in the global energy transition supply chain (nickel, cobalt, electric vehicles) and, economically, renewables—especially solar and BESS (Battery Energy Storage System)—are already superior and cheaper compared to diesel and new coal in many regions.
To realize this transformation, specific actions are needed: market reforms, elimination of fossil fuel subsidies, accelerated grid infrastructure investment, and alignment of policy documents. Indonesia cannot return to “business as usual” as global demand for coal declines. The transition will happen regardless, and Indonesia must choose to shape it or be shaped by it. The IETO 2026 Report aims to be a primary source of information to drive transformational change, not just empty talk (a literal translation of omon-omon).
Indonesia Energy Transition, Prabowo Subianto, Renewable Energy, JETP, CIPP, PLTS (Solar Power Plants), Geothermal, Electric Vehicles, Global Supply Chain, Grid Infrastructure, PLN, Fossil Fuel Subsidies, Decarbonization, IETO 2026, Energy Politics, Climate Resilience, Economic Transformation
