Indonesia, Southeast Asia’s largest economy and fourth most populous country, has experienced significant economic growth over the past two decades, with poverty rates declining and electricity access reaching nearly 99.4 percent in 2023. However, this progress has relied heavily on coal, which provides 69 percent of the country’s electricity and has made Indonesia one of the world’s largest greenhouse gas emitters. Coal power capacity increased more than 150 percent between 2013 and 2023, highlighting the urgent need for a shift toward sustainable energy to support both climate goals and continued growth.
Indonesia possesses vast untapped renewable energy potential but currently uses only 0.3 percent. Since 2015, the renewable share of total final energy consumption has grown from 12.5 to 15.6 percent. With electricity demand projected to double by 2040, the country has outlined a plan to phase out coal by 2040 and achieve net zero by 2050. UNDP supports this transition through initiatives such as the Market Transformation for Renewable Energy and Energy Efficiency (MTRE3), funded by the Global Environment Facility, which aims to provide electricity to remote communities, promote women’s participation, implement energy efficiency measures, and facilitate investments using digital solutions.
In remote communities like Lubuk Bangkar village in Jambi Province, a 60 kW micro-hydro power plant has transformed daily life. Residents who previously relied on kerosene lamps, diesel generators, and firewood now benefit from reliable electricity, improving education, healthcare, and livelihoods. Health centers can operate safely at night, enabling emergency care and safer childbirth, while local funding partnerships with BAZNAS and Bank Jambi demonstrated strong local ownership and innovative financing for sustainable energy access.
Similar projects in Renah Kasah have strengthened social and spiritual life by enabling evening religious and community activities. Sustainable energy has also boosted livelihoods, with women’s weaving cooperatives increasing productivity through electric looms. The Srikandi Energy programme promotes gender equality in the energy sector by providing women with technical training, practical experience, and leadership skills, addressing their underrepresentation in energy management roles.
Energy efficiency and digital platforms complement supply-side improvements. The project has guided state facilities and airports, including Soekarno-Hatta, I Gusti Ngurah Rai, and Banyuwangi Airports, in adopting energy conservation measures, achieving ISO 50001 certification, and GREENSHIP green building certification. A digital one-stop platform developed by the Directorate General of New, Renewable Energy and Energy Conservation (LINTAS EBTKE) has streamlined information, licensing, and investment support, accelerating renewable energy investment and addressing longstanding market barriers.
By integrating energy access, efficiency, gender inclusion, and investment facilitation, Indonesia’s sustainable energy initiatives demonstrate a comprehensive approach to driving economic growth while reducing emissions. The projects set a precedent for future efforts balancing development and environmental stewardship, showing that sustainable energy can transform lives and communities across the country.
