This report introduces the Energy Transition Readiness Index (ETRI) developed by CELIOS to evaluate Indonesia’s preparedness for the energy transition at the national and provincial levels. The study employs a composite index framework combining quantitative data and policy analysis across five key dimensions, infrastructure readiness, regulatory framework, financial capacity, social inclusion, and environmental commitment. The analysis reveals that Indonesia’s overall readiness score remains moderate (53.4 out of 100), with sharp disparities between provinces: Jakarta (78.2) and Bali (72.5) lead the ranking, while Papua, Maluku, and North Kalimantan score below 35. The chart on page 17 visually maps these provincial disparities, illustrating how Eastern Indonesia remains heavily dependent on fossil energy and lacks policy integration.
CELIOS attributes the uneven readiness to structural weaknesses, limited renewable infrastructure, incoherent fiscal incentives, and low community participation. The report highlights that 75% of regional governments lack dedicated energy-transition roadmaps and only 28% have implemented green financing mechanisms. It advocates for decentralizing renewable energy investment, enhancing green credit accessibility, and adopting progressive fiscal tools such as carbon taxes and renewable portfolio standards. The study concludes that Indonesia’s path to net-zero emissions requires not only national ambition but also robust local governance and equitable energy access to prevent a “two-speed transition” between developed and lagging provinces.
Bibliography:
Askar, M. W., Imaduddin, A. H., Darmawan, J., Fikri, B., & Muhammad, G. D. (2024). Energy Transition Readiness Index 2024. Center of Economic and Law Studies (CELIOS).