Indonesia’s energy transition policy is still considered insufficiently ambitious because it leaves room for various false solutions, such as CCS/CCUS technology, palm oil-based bioenergy, and the expansion of gas and nuclear power. Greenpeace and CELIOS released a report highlighting the dangers of using fossil gas as a transition energy source, which could instead hinder progress toward clean energy targets.
The report finds that expanding fossil gas-fired power plants would cause significant losses for the economy, the environment, and society. Cumulatively through 2040, economic output is projected to decline by IDR 941.4 trillion, with the risk of losing up to 6.7 million jobs. Environmentally, a scenario involving 22 GW of fossil gas-fired power plants would produce an additional 49.02 million tons of CO₂ emissions per year and impose public health costs of up to IDR 249.8 trillion over the next 15 years. By contrast, developing renewable energy could generate a positive economic contribution of IDR 2,627 trillion and create 20 million new jobs by 2040.
The report emphasizes that the government should not rely on false solutions that prolong dependence on fossil energy. Its key recommendations include canceling plans for new fossil gas-fired power plants in the 2025–2034 RUPTL, developing a roadmap to retire gas-fired and other fossil fuel-based power plants, and accelerating investment in renewable energy, particularly solar and wind power, to achieve a just energy transition.
Indonesia’s energy transition policy is still considered insufficiently ambitious, as it accommodates several false solutions such as CCS/CCUS, palm oil-based bioenergy, and the expansion of gas and nuclear power. In response, Greenpeace Indonesia and CELIOS released a joint report highlighting the risks of using fossil gas as a so-called “transition fuel,” which in reality could stall progress toward clean energy goals.
The report finds that fossil gas expansion would bring significant economic, social, and environmental losses. By 2040, Indonesia could face a cumulative economic output decline of IDR 941.4 trillion, alongside the risk of losing up to 6.7 million jobs. Environmentally, a 22 GW fossil gas scenario would generate an additional 49.02 million tons of CO₂ annually and impose health costs of up to IDR 249.8 trillion over the next 15 years. In contrast, a strong shift toward renewable energy could add IDR 2,627 trillion to the economy and create 20 million jobs by 2040.
The study stresses that government policies should not rely on false solutions that lock Indonesia into prolonged fossil fuel dependence. Key recommendations include canceling new fossil gas projects in the upcoming RUPTL 2025-2034, developing a clear roadmap for phasing out fossil gas and other fossil-based plants, and accelerating investments in renewable energy (particularly solar and wind) to enable a just and sustainable energy transition.