Indonesia should implement an immediate moratorium on new coal, oil, and gas exploration licenses by 2026, followed by a structured phase-out of existing production.
Indonesia stands at a critical turning point in its energy transition. As one of the world’s largest coal producers and exporters, the country plays a significant role in global emissions. Aligning with the Fossil Fuel Non-Proliferation Treaty Initiative, Indonesia can lead a just and accelerated phase-out of fossil fuels by 2030 while strengthening long-term economic and energy security.
Current Fossil Fuel Dependence
Indonesia’s energy system remains heavily reliant on fossil fuels. The country produces over 600 million tonnes of coal annually, exporting more than two-thirds to international markets. Fossil fuels account for nearly 85% of total energy consumption, with coal accounting for around 60% of electricity generation. At the same time, Indonesia imports refined petroleum products due to limited domestic refining capacity, creating a dual dependence on fossil fuels both domestically and globally.
Ending Fossil Fuel Production
A rapid decline in fossil fuel production is essential. Indonesia should implement an immediate moratorium on new coal, oil, and gas exploration licenses by 2026, followed by a structured phase-out of existing production.
- Coal production is reduced by at least 15% annually to reach zero by 2030
- Gradual decommissioning of aging oil and gas fields
- Annual public reporting of production levels
The Ministry of Energy and Mineral Resources can lead implementation, supported by strengthened regulatory frameworks and transparent monitoring systems.
Reducing Fossil Fuel Consumption
Transitioning away from fossil fuel consumption requires scaling renewable energy and improving efficiency. Indonesia should target at least 60% renewable energy in the electricity mix by 2030, alongside the early retirement of coal-fired power plants.
- Phase out fossil fuel subsidies by 2028
- Expand renewable energy investments and grid integration
- Accelerate transport electrification and public transit systems
Progress can be measured through renewable energy share, emissions reductions, and declining fossil fuel demand.
Managing Fossil Fuel Trade
Indonesia’s role as a major exporter of fossil fuels must also be addressed. A gradual reduction in exports, combined with reduced import dependency, will be key.
- Introduce coal export caps from 2026, declining to zero by 2030
- Ban new long-term fossil fuel export contracts beyond 2027
- Reduce oil imports through efficiency and clean energy alternatives
Trade and energy ministries can coordinate implementation, with annual tracking of export volumes and import ratios.
Ensuring a Just Transition
A fair transition is central to this plan. Coal-dependent regions such as Kalimantan require targeted support to protect livelihoods and local economies.
- Establish a national Just Transition Fund.
- Implement workforce retraining and reskilling programs.
- Support community-led economic diversification
These measures can be led by the Ministry of Manpower and national planning agencies to ensure inclusive and equitable outcomes.
Governance and Accountability
Strong governance will ensure the credibility and success of the transition. Indonesia should establish an independent energy transition commission to monitor progress, ensure transparency, and align national targets with global climate commitments.
Policy Engagement
This proposal can be submitted to:
Name: Bahlil Lahadalia
Title: Minister of Energy and Mineral Resources
Organization: Ministry of Energy and Mineral Resources, Republic of Indonesia
Email: contactcenter136@esdm.go.id
Conclusion
Indonesia has the opportunity to transform its energy system within this decade. By phasing out fossil fuels and investing in a just transition, the country can position itself as a global leader in climate action while safeguarding its economic future.
Learn More Resources
International Energy Agency (IEA), Net Zero Roadmap – https://www.iea.org/reports/net-zero-by-2050
This post was submitted by Climate Scorecard Indonesia Country Manager, Netra Naik.