The global climate crisis has prompted countries around the world to transition from fossil fuels to clean, renewable energy. Global commitments have begun to put all countries on a path to phase out fossil fuels and achieve net zero emissions (NZE) by 2050, as called for in the Paris Agreement. Achieving NZE will require a collective global effort to reduce greenhouse gas emissions by 45% by 2030. Phasing out and out of fossil fuels has become necessary to mitigate the worsening of global warming.

Indonesia has been heavily dependent on fossil fuels as a source of primary energy and revenues that spur the country’s economy. After oil revenues started to decline in the early 2000s, coal became an important export commodity and a main source of income for some provinces and districts. Coal also generates 65% of national electricity. Coal accounts for about 3.6% of national GDP, 11.4% of total export value, 1.8% of national government revenue and 0.2% of employment in 2022.