December 30, 2025

JAKARTA, 30 December 2025 — The Just Energy Transition Partnership () Secretariat launched the Energy Efficiency and Electrification (E3) Study on 18 December 2025. The study serves as a reference to support Indonesia’s efforts to manage rising energy demand while remaining on track to achieve its long-term climate goals.

Indonesia is projected to maintain steady economic growth of nearly 5 percent, consistent with trends observed from 2021 through 2026. At the same time, supported by a favourable demographic profile with a large young population, Indonesia’s population is expected to reach 287.9 million by 2026, representing an increase of approximately 226 percent since 1960.

In line with these developments, Indonesia’s energy demand is expected to rise in the coming years. As fossil fuels remain the primary source of energy supply, managing this growth in a balanced manner is essential to support the country’s low-carbon transition while maintaining energy security and meeting the needs of households, businesses, and industry.

has expanded its energy transition approach to address energy efficiency and electrification (E3) not only on the supply side—transmission and distribution and power generation—but also on the demand side, including industry, buildings, and transport. Often described as the “first fuel” of the energy transition, E3 can deliver immediate impact, complement grid decarbonisation, and reduce the scale and cost of future infrastructure investments.

The study was prepared by the Energy Efficiency and Electrification Working Group (E3WG), which convenes experts in energy conservation and demand-side solutions. Led by the Southeast Asia Energy Transition Partnership (ETP) of the United Nations Office for Project Services (UNOPS), the working group completed the study to identify key barriers, unlock opportunities, and explore potential projects to accelerate the adoption of energy efficiency and electrification in Indonesia.

Members of the working group include the International Energy Agency (IEA), Indonesia–Denmark Energy Partnership Programme (INDODEPP), World Resources Institute (WRI) Indonesia, Pusat Studi Energi (PSE) Universitas Gadjah Mada, and the Argonne National Laboratory.

The launch event opened with remarks from Dr. Farah Heliantina, Assistant Deputy for Energy Transition Acceleration at the Coordinating Ministry for Economic Affairs. In her remarks, Dr. Farah underscored the critical role of energy efficiency and electrification in managing Indonesia’s growing energy demand.

The event featured a presentation of the Energy Efficiency and Electrification Study Thematic Report by the Secretariat and the E3WG. The presentation highlighted key trends and outlooks across both the supply- and demand-side energy sectors, examined major technical, financial, and policy challenges, and put forward strategies and recommendations to address these issues.

A panel discussion subsequently explored opportunities to advance demand-side energy efficiency, bringing together representatives from PT Transjakarta, Synergy Efficiency Solutions, Kreditanstalt für Wiederaufbau (KfW) Development Bank, and Mitsubishi HC Capital and Finance Indonesia. The session aimed to bridge on-the-ground demand with potential financing solutions. A key takeaway from the discussion was that E3 should not be viewed merely as costs, but rather as investments that deliver financial, environmental, and social benefits.

The launch event, held in Jakarta, was attended by representatives from central and regional government institutions, members of the International Partners Group (IPG), state-owned enterprises, civil society organisations, and development partners.

Concluding the event, Hendro Gunawan, Coordinator of Technical Assistance and Cooperation of Energy Conservation at the Ministry of Energy and Mineral Resources,  reiterated the importance of this study as a key reference for concrete next steps under the, particularly in driving priority investments in energy efficiency and electrification. The event concluded with a shared aspiration for continued collaboration among stakeholders to realize a just and sustainable energy transition in Indonesia.

🔗 Access the study here: https:///news/energy-efficiency-electrification

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