Indonesia ushered in a new presidential administration, and climate circles around the country and region are speculating what the Prabowo administration means for climate progress.  Through the Paris Agreement and its Long-Term Strategy for Low Carbon and Climate Resilience 2050,  Indonesia has committed to be a net zero economy, indicating it can be a low-carbon economy by 2060 or earlier.  Climate is not the only item on the administration’s agenda.

On 17 October 2024, amidst growing global and regional demand for sustainable energy solutions, Climateworks Centre and the Purnomo Yusgiantoro Center entered into a partnership to develop a roadmap for critical mineral processing for the low-carbon battery industry between Indonesia and Australia.

Fifteen climate and energy leaders from Indonesia and Vietnam have converged on Melbourne for the Southeast Asia Just Energy Transition Fellowship.

How can business, finance and government work in harmony in Indonesia for a just transition of the country’s energy system?

Ensuring Southeast Asia’s energy security and financial stability are among the priorities while Indonesia is ASEAN Chair in 2023.

KADIN Net Zero Hub has signed a two-year MoU with Monash University, Indonesia and Climateworks Centre to build capacity within Indonesia’s private sector and to accelerate corporate commitment to net zero emissions.

To amplify sustainability disclosure and promote corporate integrity, countries in the Asia-Pacific region are progressively refining their regulatory frameworks on corporate sustainability.

Despite the country’s good progress in addressing climate change, two recent surveys have shown many Indonesians do not understand climate change or its causes.

The potential of waqf, a form of endowment under Islamic law, to finance the clean energy transition in Indonesia is vast.

A G20 seminar series, co-hosted by Climateworks Centre in Jakarta, has explored innovative approaches to financing that can help emerging economies to transition to renewable energy in a fair and sustainable way.

BPKP, Indonesia’s regulator for state-owned enterprises and key public sector agencies, has taken a significant step towards implementing its environmental, social and governance (ESG) plans, by signing a two-year memorandum of understanding (MoU) with Monash University, Indonesia and Climateworks Centre.

Indonesia, one of the world’s biggest coal producers and greenhouse emitters, plans to launch its pilot emissions trading scheme in July, which can possibly lead to the implementation of the first national carbon market in Southeast Asia.

As one of the world’s largest emitters of greenhouse gases and the fourth-largest coal producer, Indonesia must continue pursuing its efforts to create a domestic carbon market.

Climateworks recently brought together an expert panel to discuss the outlook for ASEAN nations, given their key trading partners have all pledged to net-zero by mid-century.

The approaching COP29 in Baku, Azerbaijan, will spotlight countries’ updated climate commitments to the Paris Agreement – their second nationally determined contributions (SNDCs).  SNDCs will set the stage for climate ambition in the next decade and strongly influence the national planning, policy and governance needed to affect change.

Indonesia has signalled it could include blue carbon ecosystems — carbon-rich coastal and marine areas, like mangroves and seagrass — in its new climate targets.

A holistic, multidimensional approach to the energy transition was central to a two-week immersive experience for climate and energy leaders from Indonesia and Vietnam in early 2024.  Climateworks Centre hosted 15 leaders for the inaugural Southeast Asia Just Energy Transition Fellowship Program, as part of the Department of Foreign Affairs and Trade’s Australia Awards Fellowships in February.

Blue ecosystems and ocean-based sectors, such as maritime transport and offshore renewable energy, can contribute 49 per cent of Indonesia’s net zero emissions transition.

Baca versi Bahasa Indonesia Ocean-based climate action can deliver up to a quarter of the global annual greenhouse gas emissions cuts pledged under the Paris Agreement.

The G20 is the premier forum for international economic cooperation, bringing together the world’s major economies.

Islamic endowments, waqfs (pronounced ˈwəkf), have been gaining popularity in Indonesia as a funding source for its national climate goals.

A Climateworks project exploring ocean-based mitigation has secured the involvement of leading regional figures in marine science, climate policy and environmental economics.  Professor Luky Adrianto has been appointed as chair of the Indonesian stakeholder steering committee for Climateworks’ Southeast Asia Framework for Ocean Action in Mitigation (SEAFOAM) project. 

The Government of Indonesia is bringing to life its commitment of reducing greenhouse gas emissions 29 per cent by 2030.

In the middle of the year, the Indonesian government will put its carbon tax into practice through a pilot program directed at coal-fired power plants, but it’s yet to be determined how much it will reduce Indonesia’s greenhouse emissions.

Emissions trading schemes allow firms to trade emission rights. Firms with low abatement costs will be given incentives to reduce emissions and sell their emission permits to firms with high abatement costs, enabling an economy to achieve emission reductions in the least cost manner.

There is no lack of understanding in how such funds would be put to good use: Our Investment Vision Guide developed last year offers a template for how investment, once delivered, can be strategically applied.

Guntur Sutiyono is our Country Lead for Indonesia.Alin Halimatussadiah is LPEM-FEBUI Head of Environmental Economics Research Group.

Meg Argyriou, Climateworks Head of International Programs, and her team have been running and participating in panels and events around the world.