Coordinating Minister for Economic Affairs Airlangga discusses the foundation of the green economy, macro data is the key to energy transition

Coordinating Minister for the Economy Airlangga Hartarto. (Photo: Ministry of Coordinating Economy)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that the transition to a green economy is not enough just with the target of reducing emissions, but must be supported by a strong macroeconomic foundation. The message was delivered during the National Seminar on Energy Transition for Justice at Balikpapan University, Tuesday, January 27.

Indonesia targets a 31.89 percent emission reduction in 2030 independently, and 43.20 percent with international support. Strategies are carried out through the development of green energy, strengthening the green economy, and creating green jobs.

Airlangga explained the macro indicators that are said to support the energy transition. Economic growth in the third quarter of 2025 reached 5.04 percent (yoy). December 2025 inflation is under control at 2.92 percent. JCI set a record, manufacturing PMI in the expansion zone of 51.2, and consumer confidence index of 123.5.

From the external side, the trade balance in November 2025 was a surplus of 2.66 billion US dollars, extending the trend of a surplus of 67 months. Investment in 2025 penetrated Rp. 1,931 trillion, growing 12.7 percent. Foreign exchange reserves at the end of the year were 156.5 billion US dollars. Credit grew 9.3 percent, driven by investment credit.

Indonesia has a potential of 3,686 GW of EBT, Kalimantan around 517 GW. The government is encouraging a green super grid of 70 thousand km, B40-B50 biofuels, hydrogen, nuclear, green ammonia, to CCS/CCUS. Processing is also directed to solar panels and electric vehicle batteries.

This transition is projected to create 4.4 million new jobs. The government is preparing a national internship program for 100 thousand graduates with a stipend equivalent to UMP to prepare green sector human resources.