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IKI JET – Just Energy Transition Framework

This initiative seeks to provide Indonesia with a practical and robust framework to guide a just transition toward a low-carbon energy system, mitigating the risks of energi transition and ensuring that opportunities are maximized.

Background

The Government of Indonesia has placed the Just Energy Transition (JET) as a national priority within its medium-term development agenda (RPJMN), emphasizing the need to balance climate ambition with social and economic equity. Two key indicators underpin this priority: increasing the renewable energy mix and improving energy efficiency across sectors. These targets reflect Indonesia’s commitment to transitioning toward a low-carbon energy system while sustaining economic growth.

However, achieving these goals requires more than technical and economic measures. Integrating a justice dimension is essential to ensure that the transition is inclusive, fair, and responsive to the needs of affected communities, workers, and regions. Without such considerations, the energy transition may create uneven impacts, particularly for vulnerable groups and fossil fuel–dependent areas. Addressing this complexity calls for strong coordination across ministries, sectors, and levels of government. A whole-of-government approach, supported by collaboration between national and subnational actors, is critical to align policies, manage trade-offs, and ensure coherent implementation.

Within this context, the Government of Indonesia, led by Bappenas, plays a central role in shaping policy direction and ensuring that the transition delivers equitable outcomes. By leveraging its mandate, the government can anticipate and mitigate risks associated with the energy transition while also developing policy pathways that unlock emerging opportunities, such as green jobs, sustainable investment, and regional development.

This project responds to that need by supporting the development of a national framework that embeds justice principles into Indonesia’s energy transition, helping ensure that the shift toward a cleaner energy future benefits all.

 

Approach

The project adopts a collaborative, evidence-based, and policy-aligned approach to support the development of Indonesia’s Just Energy Transition (JET) framework. First, it combines desk research and policy review with structured analysis of key national and international references. This ensures that the framework is grounded in Indonesia’s regulatory context while reflecting global best practices on just and inclusive energy transitions.

Second, the process is highly consultative and iterative. Continuous engagement with GIZ, Bappenas, Wuppertal Institute, World Resources Institute (WRI), and other partners ensures that inputs are refined through dialogue and technical discussions. This is further strengthened through cross-directorate consultations within Bappenas and cross-ministerial consultations across relevant Indonesian ministries, enabling alignment across sectors and policy areas.

In addition, the project incorporates sense-making workshops to synthesize findings, validate key insights, and build shared understanding among stakeholders. These workshops serve as a platform to bridge technical analysis with policy priorities and stakeholder perspectives.

The work emphasizes co-creation and adaptability, supporting the government in shaping a framework that is actionable, scalable, and responsive to Indonesia’s long-term development goals.