Abstract
Indonesia's energy transition is critical to achieving its climate targets, yet continued reliance on coal poses economic and social challenges. The early retirement of coal-fired power plants threatens jobs, local businesses, and regional economies, highlighting the need for a just transition.
This study assesses those socio-economic impacts through a mixed qualitative approach — policy and regulatory review, stakeholder interviews, and field visits — built around a case study of the Cirebon-1 coal-fired power plant and its coal supply chain, complemented by an interregional input-output analysis of West Java, South Kalimantan, East Kalimantan, and South Sumatra.
The analysis shows that the impacts of retirement are not confined to the host province: East Kalimantan supplied Rp 3.3 trillion and South Sumatra Rp 1.9 trillion worth of coal to West Java's electricity production, so closures ripple upstream to coal-producing regions.
Leveraging international finance, including the Just Energy Transition Partnership, will not be enough on its own. Public financing and programs for reskilling, vocational training, soft-landing sectors, and alternative livelihoods — coordinated across national and subnational government — can mitigate these impacts. By aligning policy, infrastructure, and social support, Indonesia can decarbonize its energy system while ensuring equitable outcomes for workers and communities in coal-dependent regions.
Prepared for Swaniti Initiative. Company information is drawn from public sources current to August 2026.