Most Indonesian business leaders support coal phase-out before 2035: Survey
A significant majority of Indonesian business executives − 88 percent − support transition from coal to renewable energy before 2035, according to a global survey conducted by Savanta on behalf of the We Mean Business Coalition, E3G, and Beyond Fossil Fuels.
The survey, titled “Powering Up: Business Perspectives on Shifting to Renewable Electricity”, gathered responses from 1,477 business leaders across 15 major emitting countries. Of these, 97 percent backed a shift away from coal and other fossil fuels.
In Indonesia, this support aligns with growing concern over the country’s heavy dependence on coal, which currently accounts for 62 percent of national electricity generation.
Indonesia holds over 31 billion tons of coal reserves and has increased its coal-based electricity output nearly fivefold from 2002 to 2022. Despite this, 95 percent of Indonesian executives surveyed advocate for a complete coal phase-out by 2035.
Currently, Indonesia has the third-largest pipeline of new coal-fired power plants globally, totaling 9,815 megawatts (MW).
Business leaders are also calling for the cancellation of co-firing plans with ammonia and biomass, and for the removal of fossil fuel subsidies, which equated to 2 percent of the nation’s GDP in 2022.
"Transitioning away from fossil fuels is no longer a debate − it’s an economic imperative," Maria Mendiluce, CEO of the We Mean Business Coalition, said as quoted in a statement on Wednesday, April 23, 2025.
"Businesses are investing in renewables and need government action to accelerate permitting, storage development, and grid modernization," she added.
Moreover, 72 percent of Indonesian executives reject natural gas as a transitional solution, preferring a direct shift to renewables. About 69 percent believe the renewable transition will help mitigate climate change impacts − an urgent issue for Indonesia, which is highly vulnerable to droughts, floods, and sea level rise.
Meanwhile, Claire Smith, Senior International Campaigner at Beyond Fossil Fuels, emphasized the risks of inaction.
"Leaders who fail to pivot from fossil fuels will not only forfeit future investments but may also drive businesses away," she said.
Indonesia is committed to achieving 44percent renewable energy in electricity generation by 2030 under the Just Energy Transition Partnership (JET-P). Still, 55 percent of business leaders expressed concerns about inadequate financing, particularly in solar energy, which has seen limited investment relative to the US$14.4 billion required to meet 2025 targets.
Cost savings also play a major role in business leaders’ support for renewables − 76percent said the transition could lower electricity bills for both companies and consumers. Over half of respondents urge the government to simplify permitting (52 percent) and fast-track investments in grid modernization (51 percent).
Additionally, 53 percent of executives are calling for government action to reskill the workforce to match the job opportunities expected from renewable expansion, projected to create 100,000 new jobs and attract US$4.3 billion in investment by 2030.
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