G20 Chair Indonesia’s Mixed Signals on Green Transition

Indonesia, the current chair of the G20, has been sending mixed signals on its commitment to a green transition. On one hand, the country has made some progress in renewable energy and sustainable development, but on the other hand, it continues to rely heavily on fossil fuels and has been slow to implement policies that would support a low-carbon economy.

Indonesia is the world’s fourth most populous country and the largest economy in Southeast Asia. It is also one of the world’s largest emitters of greenhouse gases, primarily due to its reliance on coal for electricity generation. According to the International Energy Agency, coal accounts for around 60% of Indonesia’s energy mix, while renewable energy sources such as solar and wind make up less than 5%.

Despite this, Indonesia has set ambitious targets for renewable energy. The country aims to achieve 23% renewable energy in its energy mix by 2025 and 31% by 2050. It has also launched several initiatives to promote sustainable development, such as the Sustainable Development Goals (SDGs) and the Low Carbon Development Initiative (LCDI).

However, progress towards these targets has been slow. Indonesia’s renewable energy capacity has only increased by around 1% per year since 2015, and the country has been criticized for its lack of policy support for renewable energy. The government has also been accused of prioritizing coal development over renewable energy, with plans to build more than 100 new coal-fired power plants in the coming years.

Indonesia’s mixed signals on the green transition have been highlighted by its recent decision to leave the Paris Agreement. The country cited concerns over the impact of the agreement on its economy, particularly its coal industry. However, the move has been widely criticized by environmental groups and other countries, who argue that it undermines global efforts to tackle climate change.

Despite these challenges, there are signs that Indonesia is starting to take the green transition more seriously. The government has recently announced plans to develop a green economy roadmap, which will outline policies and strategies to support sustainable development. It has also launched a new program to promote renewable energy in rural areas, which aims to provide electricity to around 12,500 households by 2024.

Overall, Indonesia’s mixed signals on the green transition reflect the challenges faced by many developing countries in balancing economic growth with environmental sustainability. While the country has made some progress towards renewable energy and sustainable development, it still has a long way to go to achieve its targets and transition to a low-carbon economy. As the chair of the G20, Indonesia has an important role to play in promoting global cooperation and supporting the green transition.