Landscape Advisory · Project

The Subnational Socio-Macroeconomic Implications of Energy Transition

What the energy transition means for the economies, jobs and public budgets of Indonesia’s provinces and districts.

What it is

The costs and benefits of the energy transition do not fall evenly across the country.

Coal mining and coal-fired power are concentrated in a few provinces, where they carry a large share of output, employment and regional revenue. New renewable capacity, transmission and industry will be built in other places, on a different timetable.

The project assesses the socio-economic and macroeconomic implications of the transition at the subnational level: output, employment, household income and regional public finance under different transition pathways, and the policies that could cushion the losses and spread the gains. It is part of the work on Making Just Energy Transition Work in Indonesia.

Why it matters

A transition that works nationally can still fail locally.

If coal regions lose jobs and revenue without new sources of either, the transition loses support where it most needs it. Knowing in advance which districts are exposed, and by how much, lets national and regional governments plan diversification, retraining and fiscal support before the losses arrive.

Relevant programs and publications
Project
Just Energy Transition

Reform of Indonesia’s power market, where reliability, affordability, equity and decarbonization collide.

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Project
Scaling Up Dedieselization

How a price on carbon can pay for Indonesia’s energy transition, and who bears its cost.

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Program
Just Energy Transition

Where the energy work is done, with the full list of active, incubating and completed projects.

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Subsidiary
Landscape Advisory

The advisory practice this project sits within, with its programs, projects and team.

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