The scope of today’s environmental challenges is vast and demands careful and contextual evaluations, guidance, and policy interventions. One of the pressing issues is the depletion of fossil fuel resources, which has driven a shift toward renewable energy. While both the Global North and South encounter significant hurdles in this transition, the South faces a particularly intricate set of obstacles, especially when striving for a just energy transition.

For the Global South, this transition often needs to align with economic growth imperatives. Although the Global North now leads in renewable energy adoption, one must note that it reaped extensive benefits from fossil fuels during the colonial era. The South, however, cannot replicate that path and has yet to build similarly robust institutions.

This context highlights the complexities that nations in the Global South—such as Indonesia—must address in pursuing their just transition goals. Our recent study (Jazuli et al., 2024) uses Indonesia as a case to illustrate how political, social, and regulatory factors substantially influence its energy transition efforts under the Just Energy Transition Partnership (JETP).

An ‘un-environmental’ analysis

Our work employs a policy regime framework, focusing on political, social, and regulatory ‘realities’ to evaluate Indonesia’s JETP, which was initiated during the country’s G20 presidency in 2022. While Indonesia’s commitment to the JETP marks a promising step toward reducing carbon emissions and promoting renewables, it also underscores broader challenges faced by the Global South in moving away from fossil fuels. Indonesia’s long-standing struggles to reform fossil fuel subsidies (FFSR) reflect these difficulties.

Starting in the wake of the 1998 Asian financial crisis, FFSR aimed to divert funds from fossil fuel subsidies to essential sectors like health and education. However, the progress has been hampered by political pushback and social resistance. Similarly, the JETP—though encouraging—faces significant barriers. Achieving a fair energy transition demands more than environmental resolve; it requires solid political, social, and regulatory support.

Politically, resistance to foreign-controlled financing and concerns about national debt present considerable challenges for the JETP. Additionally, coal, a vital export and energy source, is deeply embedded in Indonesia’s political and economic systems. Socially, the JETP is promoted as a national priority, yet it remains poorly understood among much of Indonesia’s population. On the regulatory side, Indonesia’s inconsistent policy landscape hinders JETP’s progress; despite ambitious carbon reduction goals, energy policies continue to favor coal, the country’s primary energy source.

Recommendations for the Global South

JETP initiatives are being pursued not only in Indonesia but also in countries like South Africa, Senegal, and Vietnam. Although these nations have unique policy environments, they share common characteristics typical of the South, such as nascent institutional structures and diverse communities. Based on our analysis, we offer three recommendations for administrations and advocates of JETPs in the Global South.

Firstly, success depends on political support from key stakeholders. Advocates should frame the energy transition as a catalyst for economic growth and national security, not merely an environmental issue. Consistent dialogue with political leaders is essential to ensure JETP alignment with their agendas. Emphasizing how JETPs can expand political leaders’ constituencies will boost the initiative’s appeal.

Secondly, for an equitable transition, it’s vital to go beyond elite (English-dominated) discussions and actively involve affected groups, such as coal industry workers. Vulnerable populations, including women and indigenous communities, should also have a voice in decision-making to foster an inclusive transition. Engaging trusted entities like religious, social, and cultural organizations can build ownership and trust.

Lastly, existing regulatory frameworks need revisiting to ensure policy alignment, particularly in curbing fossil fuel dependency, which conflicts with renewable energy goals. JETPs can act as a lever for updating and streamlining policies that currently impede renewable energy growth and investment. Effective enforcement is also critical to overcoming the policy inertia and reversals common in energy-related reforms. (*)

Muhamad Rosyid Jazuli – PhD Candidate at UCL STEaPP, affiliate researcher at Paramadina Public Policy Institute

Related publication:

Jazuli, M. R., Roll, K., & Mulugetta, Y. (2024). A review of Indonesia’s JETP through the dynamics of its policy regime. Global Policy, 00, 1–18. https://doi.org/10.1111/1758-5899.13452