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Indonesia is the world’s fourth most populous country and is set to become the world’s fourth largest economy by mid-century. The choices that Indonesia makes now and in the decades to come will therefore have a significant bearing on the world’s energy markets and international efforts to reach collective climate goals.
Indonesia, a member of the IEA family since 2015, has committed to reach net zero emissions by 2060 or before – an ambitious task given the country’s growth objectives and status as a globally important consumer and producer of coal. However, with a transition to net zero offering extensive and varied economic opportunities, Indonesia is beginning to put in place the policies and frameworks that can help reach this target while moving towards reaching advanced economy status.
To assist in this critical task, the IEA – at the request of the Government of Indonesia and to coincide with Indonesia’s Presidency of the G20 – has developed a comprehensive Net Zero Roadmap for the country, which charts a path for the country’s energy transition over the coming decades. The project has been conducted in close collaboration with Indonesia’s Ministry of Energy and Mineral Resources (MEMR), demonstrating the strong cooperation between the IEA and Indonesia on energy transitions.
The Roadmap’s analysis spans key areas such as people-centred transitions, the phasing down of coal use, investment and financing needs, and critical minerals. It also sets out a high-ambition pathway in which Indonesia reaches net zero by 2050.
The report, An Energy Sector Roadmap to Net Zero Emissions in Indonesia, will be launched by IEA Executive Director Fatih Birol at the G20 Energy Transitions Ministerial Meeting in Bali, Indonesia, on 2 September 2022.
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