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Indonesia’s energy transition continues to face headwinds

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Indonesia is one of the world's leading coal producers. Nonetheless, it has pledged to cut back on its usage of fossil fuels in the near future.

Last year, Indonesia signed five agreements to cut its carbon emissions. Among these was the $20 billion Just Energy Transition Partnership (JETP) deal, which was reached last November during the Group of 20 conference in Bali. The deal intends to turn one of the world's top coal-producing countries toward clean energy alternatives. However, experts warn that numerous challenges must be solved.

David Elzinga, principal energy specialist at the Asian Development Bank, called Indonesia's energy transformation "unusual." This is due to the country's rapid economic expansion, location, population centers, and "clean energy" potential, he said.

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