A worker at the Lahendong geothermal site on Sulawesi Island, Indonesia. The hot steam produced here is fed to a nearby power plant to generate electricity.

    Core area “Climate and energy, just transition” Boosting sustainable energy

    Roughly one third of Indonesia’s greenhouse gas emissions emanate from the energy sector. Since Indonesia is a country with enormous reserves of coal, the government is continuing to promote the use of this environmentally harmful but cheap source of energy. At the same time, however, it is undertaking efforts to promote the use of renewable energy to generate electricity.

    A worker at the Lahendong geothermal site on Sulawesi Island, Indonesia. The hot steam produced here is fed to a nearby power plant to generate electricity.

    Press release | 10 February 2022 Minister Schulze pledges support for Indonesian-German initiative to improve Green Infrastructure

    In order to protect the climate as a global public good, Germany is assisting the Indonesian government in its efforts to create the political, legal and technical prerequisites for using geothermal energy, hydropower and solar energy. For example, the BMZ is supporting the construction of hydropower stations, the expansion of transmission grids and supply networks, and the electrification of rural areas and remote islands using small-scale hydropower plants.

    In the margins of the G20 Summit hosted by Indonesia in 2022, which took place in parallel to the World Climate Conference COP27, Indonesia, the G7 countries and Denmark and Norway announced that they had agreed an ambitious Just Energy Transition Partnership (JETP). Specifically, it was agreed, for example, to achieve net zero emissions in the power sector by 2050 (i.e. ten years earlier than planned), to reach the peak of emissions in the power sector by 2030 with a maximum of 290 million tonnes of carbon dioxide (i.e. approximately seven years earlier than planned) and increase the share of renewable energies in the power mix to 34 per cent by 2030 (that is equivalent to more than double the current share).

    In addition, no more new grid-based coal-fired power stations are to be commissioned beyond those that are already in the planning or implementation phase. And for any off-grid coal-fired power stations that the industry is planning solutions based on renewables are to be developed and implemented as alternatives.

    To ensure that the energy transition is socially equitable, the JETP puts a special focus on women, young people and the population groups that are most affected by the coal phase-out. The German government will contribute approximately 1.5 billion euros to the implementation of the JETP.

    Furthermore, the BMZ is working to make urban infrastructure in selected provinces more modern and more eco-friendly. Related efforts address the circular economy and waste management, urban public transport services, water supply and wastewater systems.


    As at: 18/10/2023