Reconsidering the Energy Transition: From Elite Interests to People’s Interests

Towards a sustainable future, Indonesia has a strong commitment to fight the ongoing climate change. The transformation planned to fight the ongoing climate change requires a lot of support, especially financial investment estimated at US$2 trillion, in the hope that the net zero emission target of 2060 can be achieved. It’s a fantastic figure, but it raises basic questions about whether this big change is really designed for the benefit of the people or only benefits a handful of parties. The investment required is huge. We need to look at the facts before talking further, that in Indonesia there are still thousands of villages that do not have electricity supply, especially in remote villages. The dilemma occurs when big cities in Indonesia, such as Jakarta have started to replace fossil fuels with solar panels or electric vehicles.

Who will ultimately benefit from this mega energy transition project? Will the benefits really be felt by the wider community, or will it just be a profit field for large corporations and a handful of political elites? It is paradoxical to reveal who will benefit and who will ultimately be marginalized in the journey towards a green future.

It is important to have a mapping of interests in the energy transition, as it involves many actors with diverse interests, from large corporations, to communities. The distribution of benefits is often uneven and benefit certain parties. Most large-scale renewable energy projects in Indonesia are controlled by large domestic and foreign companies. For example, the construction of gigawatt-scale solar power plants (PLTS) in Kalimantan and Sumatra is controlled by large corporations in collaboration with state-owned enterprises (SOEs). On the other hand, complex regulations and high costs are barriers for small players to enter the clean energy market. Household-scale solar power plants (PLTS) offer a fairer solution. By installing solar panels on homes, people can directly access clean energy and reduce dependence on the main grid. Unfortunately, there is little support for such initiatives. Subsidies and incentive schemes are directed more towards large projects than community-based solutions.

The road to an equitable energy transition, the energy transition should not only be an ambitious project that benefits the elite. The principle of justice must be the main foundation, the benefits of the energy transition must be felt by all levels of society, especially the most vulnerable groups. It is important to create policies that promote inclusion, support community-based initiatives, and ensure transparency in the management of renewable energy projects.

The social impact of the energy transition in Indonesia is predicted to eliminate the livelihoods of up to 252,000 coal industry workers. But on the other hand, the energy transition is also expected to create around 14 million new jobs in the global energy supply system by 2030 according to the IEA’s Net Zero by 5040 scenario.

Learning from other countries about more equitable alternatives, Germany and Denmark have proven that community-based energy models can work. In Indonesia, the communal solar PV project in Sumba is an example of how the energy transition can benefit local communities. Microfinance schemes for household-scale renewable energy have shown positive results, allowing communities to become both producers and consumers of energy. This example shows that the energy transition does not have to be an elite project. Communities can take a more active role in overseeing this change, ensuring that the energy transition truly brings benefits to all. The momentum of this energy transition can be an opportunity to build a more democratic and equitable energy system.

The transformation of the energy system from dependence on fossil fuels to the adoption of renewable energy is a strategic momentum in the effort to realize an equitable and sustainable social order. his transformation needs to address social fairness, economic opportunity, and environmental protection together. For this change to work, we must put communities first by Supporting their initiatives, building their capacity to participate, ensuring benefits are shared fairly, creating clear and open monitoring systems. The heart of this transition isn’t just about changing energy sources – it’s about reshaping our approach to create a more equitable and sustainable future for everyone.

Community empowerment through technical training and green energy certification. Local communities can be an integral part of renewable energy projects. Technical training and certification programs can improve their skills in this sector. Steps could include providing certification for local renewable energy technicians and operators, incentivizing energy companies that employ certified workers from local communities and setting a 30% local employment quota for large energy projects, so that the benefits of the project go directly to the local community.

A more equitable benefit-sharing mechanism for social energy funds. Each large energy project is required to set aside 1-2% of annual revenue in the Energy Equity Fund to provide scholarships for children in the project area, develop environmentally friendly small and micro enterprises in the surrounding community and then improve public facilities such as free energy for low-income households in the project area. This ensures that local communities can directly benefit from renewable energy projects.

Community oversight can be done by creating local energy transition monitoring committees. Accountability and transparency are key to a successful energy transition. The government can establish a local energy transition monitoring committee consisting of environmental NGOs, local community representatives and local academics. These committees have the authority to oversee the social commitments of project development and ensure projects are implemented according to sustainable standards.

Communities must be involved to become the main actors in guarding equitable energy. Involving the community from the beginning will create trust, reduce resistance and ensure the sustainability of energy policies in the long run.

A democratic energy transition can finally be created into a new vision. Energy can finally become a public resource that is managed collectively, not just a commodity. Policies that empower communities, share benefits fairly and oversee projects transparently, will create an energy transition model that is not only environmentally friendly but can improve social welfare. Indonesia can be a global leader in creating an energy transition that is equitable, inclusive and democratic.