Prospects of Energy Transition in Indonesia
Indonesia has outlined its nationally determined contributions (NDCs) and committed to net-zero emissions (NZE) by 2060, prioritizing a shift to renewable energy alongside emissions reductions in forestry. Despite this ambition, the country’s lower-middle-income status, fiscal limitations, and difficulties attracting international financing pose major hurdles. An assessment of Indonesia’s economic capacity, past energy transition efforts, and current initiatives shows that while meaningful progress is achievable, reaching NZE by 2060 will require overcoming substantial structural and financial challenges.
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