Publication - Socio-Economic Footprint of the Energy Transition: Indonesia
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In an effort to address some of these challenges, Indonesia pledged to achieve carbon neutrality by 2050. A key question is how such a complex transformation affects the well-being and overall welfare of the Indonesian people.
Informed by IRENA’s World Energy Transitions Outlook, this report explores the potential socioeconomic impacts of the energy transition in Indonesia. IRENA’s analysis has shown that a more comprehensive and ambitious energy transition will lead to improved socio-economic outcomes. Under the 1.5°C Scenario, Indonesia is expected to experience 0.5% higher GDP, 2.6% more economy-wide jobs and 8.1% higher social welfare than in the Planned Energy Scenario over the 2021-2050 period. In the renewable energy sector, the energy transition could boost employment substantially, from around 0.6 million currently to around 2 million by 2030 and 2.5 million (mainly bioenergy and solar technologies) by 2050 under 1.5˚ Scenario.To reap the benefits of the energy transition, a holistic and just transition policy framework must be implemented. This requires concerted action both from within Indonesia, and from international partners to support Indonesia in its transition. Political commitment by Indonesia’s government at all levels will be a significant stepping stone. This should be backed by enhanced co-operation between, and capacity building in, different line ministries, government bodies and implementing agencies, including at the regional and local levels.