FGD on Enhancing Just Transition for the Government of Indonesia

On February 20, 2025, the Indonesian Coordinating Ministry of Economic Affairs (CMEA) hosted a Focus Group Discussion (FGD) on Enhancing Just Transition at Hotel Mercure Sabang, Jakarta, bringing together key stakeholders from national and subnational governments, State-Owned Enterprises (SOEs), and international organizations. Facilitated by the JETP Secretariat in collaboration with UNOPS ETP, UNDP Indonesia, and GIZ, the session aimed to refine guidelines for operationalizing the Just Transition Framework, focusing on Standard 9: Economic Diversification and Transformation. The event was attended by 18 ministries, 6 SOEs, and two subnational governments in person, while 33 ministries, 20 subnational governments, and 11 international organizations joined online. Discussions emphasized the need for strong government coordination, inclusive participation, and effective monitoring, evaluation, and grievance mechanisms to support a fair transition from fossil fuel dependency to a low-emission, climate-resilient economy. The session also highlighted the importance of balancing energy security, equity, and sustainability while ensuring that communities, women, and marginalized groups actively shape Indonesia’s energy future. Insights from this FGD will strengthen the implementation of CIPP 2025, reinforcing Indonesia’s commitment to a just and sustainable energy transition.

Jakarta, February 20, 2025 – The Indonesian Coordinating Ministry of Economic Affairs (CMEA), hosted a Focus Group Discussion (FGD) on Enhancing Just Transition at the Grand Sky Ballroom, Mercure Sabang, Jakarta. The JETP Secretariat facilitated the FGD in collaboration with UNOPS ETP, UNDP Indonesia, and GIZ. The event was officially opened by Mr. Rachmat Kaimuddin, Deputy under the Coordinating Ministry for Infrastructure and Regional Development, and concluded by Ms. Farah Herliantina, Assistant Deputy of Acceleration of Energy Transition, Coordinating Ministry of Economic Affairs. The session gathered representatives from the National Government, Subnational Government, and State-Owned Enterprises to provide input on the draft update on Chapter 6: Ensuring a Just Energy Transition in the upcoming iteration of the CIPP 2025.

The FGD was attended in person by 18 ministries and national institutions, 6 State-Owned Enterprises (SOEs), the Indonesia Energy Transition Task Force (Rumah Paten), and two subnational governments—additionally, 33 ministries and institutions, 20 subnational governments, and 11 international organizations online.

The primary objective of this FGD was to gain input on the development of guidelines for operationalizing the Just Transition Framework, monitoring and evaluation mechanisms, and grievance mechanisms. This session brought together representatives from the National Government, Subnational Government, and State-Owned Enterprises to provide input on the update of Chapter 6: Ensuring a Just Energy Transition in the upcoming iteration of the CIPP 2025.

The discussion was structured, beginning with presentations from Just Transition experts from UNDP Indonesia, the JETP Secretariat, UNOPS ETP, and GIZ. Participants examined the application of Standard 9: Economic Diversification and Transformation, which goes beyond existing Good International Industry Practice Frameworks by providing additional benefits for social and environmental safeguards.

Economic diversification and transformation are essential to reducing dependence on fossil fuel-based industries, ensuring resilience, and fostering low-emission, climate-resilient income sources. The FGD explored governance strategies for both national and subnational levels, focusing on the necessary support mechanisms for a diversified economy during the energy transition.

The discussion concluded with several key insights. Presentations covered the Just Transition Framework, the operationalization of Standard 9, policy recommendations, grievance mechanisms, and the monitoring and evaluation framework. Standard 9 is structured around three main pillars: Economic and Financial Policy, Technological Innovation, and Human Resource Development. The session highlighted the need for disaggregated data as a crucial component for the initial assessment of Just Transition projects, ensuring targeted and effective implementation.

Government support was identified as a critical factor in successfully implementing the Just Transition Framework. A well-defined role and strong stakeholder coordination will be essential, and an effective feedback mechanism will be established to address concerns and ensure accountability. Additionally, enhancing the capacity of local governments and promoting transparency in national decision-making processes will help facilitate smoother transitions.

Inclusivity emerged as a central theme, with participants emphasizing the importance of actively involving communities, women, and people with disabilities in discussions and mapping efforts. Their participation will ensure that the transition remains fair and equitable. Finally, discussions focused on the need for Indonesia to balance energy security, energy equity, and environmental sustainability, ensuring that economic transformation does not come at the cost of stability or social welfare.

The insights and recommendations from this FGD will be crucial in refining the guidelines for operationalizing the Just Transition Framework. Input from all participants will also enhance monitoring, evaluation, and grievance mechanisms, ultimately strengthening the CIPP 2025 implementation strategies.