State Capitalism and Renewable Energy Transition in Environmental Policy: The Danantara Case

The renewable energy transition is central to global environmental policy and climate governance. In Indonesia, the introduction of Danantara as a state-led clean energy investment platform represents a key step toward achieving Net Zero Emissions by 2060. This study critically examines Danantara through the lens of state capitalism and the political economy of energy transition. Employing a historical institutionalist framework and document-based policy analysis, the research investigates how the platform operates within existing monopolistic state structures. Findings reveal that although Danantara is positioned as a green investment mechanism, it largely reinforces centralized control through state-owned enterprises and regulatory dominance, reflecting a pattern of “green monopoly.” The results suggest that sustainability discourse in this context functions as both an environmental strategy and a legitimizing tool for state-driven economic power. While Danantara holds potential to mobilize renewable energy financing, its limited governance transparency and constrained market participation hinder inclusive energy justice. The study concludes that effective renewable energy transition in Indonesia requires structural reforms promoting decentralized governance, transparent market regulation, and participatory environmental policy.