Six leading organisations commit to strengthen climate collaboration in Indonesia

Six leading organisations have formalised a strategic partnership at the Fifth Australia-Indonesia Energy Transition Policy Dialogue to accelerate the nation’s clean energy transition through collaborative research, policy support and institutional cooperation. 

The Memorandum of Understanding (MoU) was signed in Jakarta by Climateworks Centre, Centre for Policy Development (CPD), Institute for Essential Services Reform (IESR), International Institute for Sustainable Development (IISD), Indonesia Research Institute for Decarbonization (IRID) and Purnomo Yusgiantoro Center (PYC).

Anna Skarbek AM, CEO of Climateworks Centre said: ‘This MoU cements our collective effort to accelerate a just energy transition in Indonesia. By leveraging strategic research, government and industry engagement, and global linkages, we will support Indonesia in implementing ambitious net zero policies and ensuring its industries and people are well prepared to benefit from the future low-carbon economy.’

Andrew Hudson, CEO of the Centre for Policy Development said: ‘Collaboration has never been more important if we’re serious about achieving a just transition. This Indonesian-led, non-government partnership brings together a unique mix of knowledge, expertise and experience to help make it happen.’

The six organisations have convened as the Energy Transition Policy Development Forum (ETP Forum) since 2022 to improve collaboration and impact in Indonesia and influence the G20 Energy Transition Working Group agenda. The forum’s first convened workshop was attended by the Indonesian Vice President, the Minister of Energy and the Minister of Finance as part of the G20 Energy Transition Working Group.

The ETP Forum is well placed to achieve policy change in Indonesia due to the breadth and depth of its membership, networks and expertise, respected relationships, and high-level connections.

Since its inception the ETP Forum has: 

• Launched the joint Energy Policy Brief for the 2023 ASEAN Chair
• Led the side event at the 2023 ASEAN Energy Business Forum
• Released key policy recommendations for accelerating clean energy deployment in Indonesia
• Signed a Memorandum of Understanding between Climateworks and PYC on low-carbon battery industry roadmap development

The newly formalised partnership will seek out opportunities as a collective, including:

• Deepening cooperation on critical minerals and electric vehicle battery supply chain cooperation: This has been recognised as a promising area for growth and one in which the ETP Forum is well positioned to play a convening role. 
• Multilateral collaboration: The ETP Forum could work to bring together countries to champion key initiatives that foster regional and bilateral climate agendas.
• Energy subsidy reform: Develop actionable policy reforms to address inequality and accelerate coal power phase-out. This includes fossil fuel subsidy reform, financing decommissioning fossil fuels in Indonesia, and further development of availability and access to renewable and alternative energy, grid interconnectivity and transmission.
• Setting a vision and framework for a just transition: Work to build momentum towards a just transition. This involves looking at the impacts of the energy transition beyond directly affected workers to the whole of society, and design steps to mitigate negative impacts and accelerate benefits and opportunities.
• Place-based approaches and sharing lessons at the sub-national level: Develop provincial/state/local place-based approaches to just transition and industrial decarbonisation, sharing lessons from coal-dependent regions and building sub-national relationships. 

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