Harmonizing Indonesia’s Regulatory Framework on Energy Transition to Balance Green Goals and Economic Growth

Abstract The burning of fossil fuels significantly contributes to global warming due to the substantial release of carbon emissions into the atmosphere. In response, international frameworks such as the Sustainable Development Goals (SDGs) and the Paris Agreement emphasize the urgent need to reduce carbon emissions and transition to clean energy sources. Aligned with these global initiatives, Indonesia, in collaboration with the International Partners Group (IPG), launched the Just Energy Transition Partnership (JETP) to accelerate the shift from coal-based energy to cleaner alternatives. Indonesia has enacted various laws to support the implementation of these frameworks. However, it faces challenges stemming from regulatory inconsistencies and misalignments within its legal system. This study employs a normative legal research approach to critically analyze Indonesia’s regulatory framework concerning the JETP. The findings indicate that current regulations remain fragmented and poorly integrated. Continued reliance on coal hampers progress, and the premature retirement of coal-fired power plants without clearly defined guidelines poses socio-economic risks, particularly for affected workers. Furthermore, this study explores strategies for regulatory harmonization, including policy revisions to align more closely with decarbonization targets and international commitments, the establishment of clear guidelines and roadmaps, economic diversification, community participation, infrastructure development, and robust monitoring and evaluation mechanisms. By addressing regulatory gaps and proposing actionable solutions, this study aims to support Indonesia’s transition toward a low-carbon economy while honoring its global climate commitments.