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Bangkok, Thailand / Page 1 (2) Edition: March 24, 2022
Indonesia's Net-Zero Leadership Precedent
Growth and Sustainable Development in the Narrative of Indonesia's
Energy Reform and Net-Zero Transition
Siripong Treetasanatavorn
Sloan Fellow, Massachusetts Institute of Technology
Leadership Narrative:
• Representative call of global ambition marked by Indonesia's governance
leadership at COP26 sets tone from the top on behalf of the Global South,
with specific aim that makes sense of structural growth in simultaneous dialog
of sustainability and net-zero transition at 2030/2050 horizon (see Indonesia's
climate commitment to the international community on behalf of UNFCCC¹);
• Sustainability investment for the future, nevertheless, requires a rigorous
planning and execution that address structural challenge at today’s transition,
such as upon diversification of energy mix with renewable sources, while also
integrating greater forward-looking outlook to the medium-term macrofiscal
framework, with achievable target corridors as part of national and regional
development narrative (referred to as RPJMN for 2015-19 and 2020-242
);
• Leadership narrative of the required structural transition in this sense
must bring together incentive for infrastructure development (such as core
grid and last-mile energy infrastructure) to the premise of socio-economic
achievement, thereby forging an orchestrating impact platform substantive to
choices of the reform strategy at transition all across governance dimensions,
particularly in terms of security and sustainability but also competitiveness
and resilience (see national energy and electrification plans RUEN/RUKN3
);
• Pivot of the net-zero transition shall find reciprocal market-policy resonance
once seeking to mutually reinforce whole-of-ecosystem impact based on joint
climate mitigation and adaptation mechanisms, thereby effectively addressing
physical and transition risks on the global and regional level, while opening up
new strategic technology and innovation dialogs (for instance with advance in
clean hydrogen as strategic risk mitigation tool in economic policy narrative⁴),
essentially by harnessing reciprocal partnership on both policy and diplomacy
levels in fulfillment of growth and sustainability ambition in the long run (refer
to global-governance initiatives from Indonesia's G20 Presidency in 2022⁵);
• Resonance of Indonesia's governance leadership shall therefore set a key
pivotal leadership precedent, representative to the international community at
today’s critical transition, and thereby substantiating strategic dialogs of net-
zero and sustainability partnership, all in greater shared narrative of climate-
resilient development that wins market and policy traction from perspective of
national growth and sustainability development while leaving no one behind.
S. Treetasanatavorn. Indonesia's Net-Zero Leadership Precedent
Edition: March 24, 2022 Bangkok, Thailand / Page 2 (2)
References (in appearance order):
1. See Indonesia’s long-term climate commitment at UNFCCC (2021):
https://www4.unfccc.int/sites/NDCStaging/pages/Party.aspx?party=IDN
2. See discussion of medium-term national development plan in ADB (2020):
https://www.adb.org/sites/default/files/institutional-document/666741/indonesia-
energy-asr-update.pdf; but also in Indonesian Journal of Development Planning
(2019): https://journal.bappenas.go.id/index.php/jpp/article/download/87/66; and
Indonesia’s Presidential Regulation (2020): https://perpustakaan.bappenas.go.id/e-
library/file_upload/koleksi/migrasi-data-publikasi/file/RP_RKP/Narasi-RPJMN-2020-
2024-versi-Bahasa-Inggris.pdf
3. See the discussion of climate finance at OECD (2021): https://www.oecd-
ilibrary.org/finance-and-investment/clean-energy-finance-and-investment-policy-
review-of-indonesia_0007dd9d-en; also at IEA (2020):
https://www.iea.org/reports/clean-energy-transitions-programme-2020
4. See the discussion of advances in clean hydrogen innovation for example from the
UAE (2022): https://fuelcellsworks.com/news/uae-has-started-building-first-green-
hydrogen-plant-in-middle-east-minister; but also with specific technical details from
EERE (2022): https://www.energy.gov/eere/fuelcells/hydrogen-production-electrolysis
5. See example of global-governance leadership precedent in this context at G20 in
Indonesia (2022): https://g20.org/high-level-forum-indonesias-g20-presidency-to-be-
catalyst-for-economic-transformation/

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Indonesia's Net-Zero Leadership Precedent

  • 1. Bangkok, Thailand / Page 1 (2) Edition: March 24, 2022 Indonesia's Net-Zero Leadership Precedent Growth and Sustainable Development in the Narrative of Indonesia's Energy Reform and Net-Zero Transition Siripong Treetasanatavorn Sloan Fellow, Massachusetts Institute of Technology Leadership Narrative: • Representative call of global ambition marked by Indonesia's governance leadership at COP26 sets tone from the top on behalf of the Global South, with specific aim that makes sense of structural growth in simultaneous dialog of sustainability and net-zero transition at 2030/2050 horizon (see Indonesia's climate commitment to the international community on behalf of UNFCCC¹); • Sustainability investment for the future, nevertheless, requires a rigorous planning and execution that address structural challenge at today’s transition, such as upon diversification of energy mix with renewable sources, while also integrating greater forward-looking outlook to the medium-term macrofiscal framework, with achievable target corridors as part of national and regional development narrative (referred to as RPJMN for 2015-19 and 2020-242 ); • Leadership narrative of the required structural transition in this sense must bring together incentive for infrastructure development (such as core grid and last-mile energy infrastructure) to the premise of socio-economic achievement, thereby forging an orchestrating impact platform substantive to choices of the reform strategy at transition all across governance dimensions, particularly in terms of security and sustainability but also competitiveness and resilience (see national energy and electrification plans RUEN/RUKN3 ); • Pivot of the net-zero transition shall find reciprocal market-policy resonance once seeking to mutually reinforce whole-of-ecosystem impact based on joint climate mitigation and adaptation mechanisms, thereby effectively addressing physical and transition risks on the global and regional level, while opening up new strategic technology and innovation dialogs (for instance with advance in clean hydrogen as strategic risk mitigation tool in economic policy narrative⁴), essentially by harnessing reciprocal partnership on both policy and diplomacy levels in fulfillment of growth and sustainability ambition in the long run (refer to global-governance initiatives from Indonesia's G20 Presidency in 2022⁵); • Resonance of Indonesia's governance leadership shall therefore set a key pivotal leadership precedent, representative to the international community at today’s critical transition, and thereby substantiating strategic dialogs of net- zero and sustainability partnership, all in greater shared narrative of climate- resilient development that wins market and policy traction from perspective of national growth and sustainability development while leaving no one behind.
  • 2. S. Treetasanatavorn. Indonesia's Net-Zero Leadership Precedent Edition: March 24, 2022 Bangkok, Thailand / Page 2 (2) References (in appearance order): 1. See Indonesia’s long-term climate commitment at UNFCCC (2021): https://www4.unfccc.int/sites/NDCStaging/pages/Party.aspx?party=IDN 2. See discussion of medium-term national development plan in ADB (2020): https://www.adb.org/sites/default/files/institutional-document/666741/indonesia- energy-asr-update.pdf; but also in Indonesian Journal of Development Planning (2019): https://journal.bappenas.go.id/index.php/jpp/article/download/87/66; and Indonesia’s Presidential Regulation (2020): https://perpustakaan.bappenas.go.id/e- library/file_upload/koleksi/migrasi-data-publikasi/file/RP_RKP/Narasi-RPJMN-2020- 2024-versi-Bahasa-Inggris.pdf 3. See the discussion of climate finance at OECD (2021): https://www.oecd- ilibrary.org/finance-and-investment/clean-energy-finance-and-investment-policy- review-of-indonesia_0007dd9d-en; also at IEA (2020): https://www.iea.org/reports/clean-energy-transitions-programme-2020 4. See the discussion of advances in clean hydrogen innovation for example from the UAE (2022): https://fuelcellsworks.com/news/uae-has-started-building-first-green- hydrogen-plant-in-middle-east-minister; but also with specific technical details from EERE (2022): https://www.energy.gov/eere/fuelcells/hydrogen-production-electrolysis 5. See example of global-governance leadership precedent in this context at G20 in Indonesia (2022): https://g20.org/high-level-forum-indonesias-g20-presidency-to-be- catalyst-for-economic-transformation/