A Just Energy Transition? Opportunities and Challenges for Post-Coal Indonesia

Abstract

This paper critically examines the prospects for a just energy transition in Indonesia as the country begins to shift away from coal dependency toward renewable energy sources. Indonesia, one of the world’s largest coal producers, faces mounting domestic and international pressure to decarbonize its energy sector in line with global climate commitments. However, the transition raises complex questions about justice, equity, and governance—particularly for coal-dependent regions and labor forces whose livelihoods are intricately tied to the fossil fuel economy. Through a multi-scalar analysis combining policy review, expert interviews, and regional case studies in East Kalimantan and South Sumatra, this study investigates how the concept of a “just transition” is interpreted and operationalized within the Indonesian context. Findings reveal significant challenges, including policy fragmentation, weak institutional capacity, and the risk of reproducing existing socio-economic inequalities in the shift to green energy. Furthermore, large-scale renewable energy projects often mirror the extractive logic of coal, displacing communities and undermining local participation. The paper’s key contribution lies in its critical engagement with the normative dimensions of energy transition. It argues that without strong frameworks for procedural justice, labor retraining, and inclusive decision-making, Indonesia’s energy transition may remain unjust and uneven. By foregrounding the voices of workers, local communities, and civil society actors, the study underscores the need for a socially responsive approach to energy governance. Ultimately, it calls for a transition model that not only reduces emissions but also redistributes power and benefits equitably across Indonesian society.