Balancing Sustainability and Economic Growth in Indonesia: Challenges and Strategies

Indonesia’s economy is closely tied to its natural resources. It’s the world’s fourth largest producer of coal, and Southeast Asia’s largest gas supplier. 

But even with its connection to fossil fuels, the country’s population strongly supports climate goals. In this year’s presidential election, every candidate advocated for the energy transition and more renewables. 

At the same time, like many developing countries, Indonesia needs energy security, increased access to energy, and affordability. These factors complicate the energy transition, and could prolong the use of existing fossil fuel infrastructure and abundant coal resources. 

So, how can Indonesian policymakers balance economic development and the energy transition? What is the role of renewables in meeting the country’s growing energy demands? And how can Indonesia collaborate in energy with other Asian nations?

This week host Bill Loveless talks with Mari Pangestu about the efforts to build a clean energy economy in Indonesia. 

Mari is a distinguished visiting fellow at the Center on Global Energy Policy. From 2020 to 2023, she served as the managing director of development policies and partnerships at the World Bank. Prior to joining the World Bank, Mari served as Indonesia’s minister of trade and as minister of tourism and creative economy.