Indonesia's Climate Conundrum: Weighing Economic Growth Against Environmental Concerns
The world's fourth-most populous country is facing a paradox - rapid economic growth, but at a steep environmental cost. As the global temperature continues to rise, Indonesia finds itself in a precarious position, struggling to balance its commitment to climate action with its reliance on carbon-intensive resources.
Deforestation and peatland drainage have been major drivers of Indonesia's development model, reshaping landscapes through timber, pulp, and mineral excavation, as well as palm oil booms. The country produces 55% of the world's palm oil, a sector that contributes to GDP and employs millions. However, this growth comes at a cost - over 90% of Indonesia's energy still relies on fossil fuels, with coal dominating 70% of electricity production.
Indonesia is expected to submit its second nationally determined contribution (NDC) in September, aiming for a 31.89% emissions cut by 2030. However, critics argue that this plan is not ambitious enough and that the country needs to do more at home to address its environmental concerns. Tiza Mafira, Indonesia's director at the Climate Policy Initiative, notes that "the concept is good, but we need better governance and accountability."
Indonesia's commitment to climate action has been questioned by its reliance on coal, nickel, and palm oil. Satellites show new deforestation and fire hotspots in south Sumatra and central Kalimantan, while vast peat swamps continue to be drained for plantations, leading to pollution and devastating wildfires.
Despite the challenges, Indonesia is positioning itself as a voice for climate equity at Cop30 in BelΓ©m, Brazil. Officials will tout the new NDC as proof of ambition, highlighting its carbon-market potential to attract investors. The focus will also be on affirming the 2030 forest and other land-use (Folu) net sink target.
As Indonesia navigates this complex landscape, experts warn that near-term action is critical. The government's emissions' peak has already been pushed back to 2035, demanding faster cuts later. Indonesia hopes to secure clarity on its renewable targets and phase-out coal commitments at Cop30.
The world's fourth-most populous country is facing a paradox - rapid economic growth, but at a steep environmental cost. As the global temperature continues to rise, Indonesia finds itself in a precarious position, struggling to balance its commitment to climate action with its reliance on carbon-intensive resources.
Deforestation and peatland drainage have been major drivers of Indonesia's development model, reshaping landscapes through timber, pulp, and mineral excavation, as well as palm oil booms. The country produces 55% of the world's palm oil, a sector that contributes to GDP and employs millions. However, this growth comes at a cost - over 90% of Indonesia's energy still relies on fossil fuels, with coal dominating 70% of electricity production.
Indonesia is expected to submit its second nationally determined contribution (NDC) in September, aiming for a 31.89% emissions cut by 2030. However, critics argue that this plan is not ambitious enough and that the country needs to do more at home to address its environmental concerns. Tiza Mafira, Indonesia's director at the Climate Policy Initiative, notes that "the concept is good, but we need better governance and accountability."
Indonesia's commitment to climate action has been questioned by its reliance on coal, nickel, and palm oil. Satellites show new deforestation and fire hotspots in south Sumatra and central Kalimantan, while vast peat swamps continue to be drained for plantations, leading to pollution and devastating wildfires.
Despite the challenges, Indonesia is positioning itself as a voice for climate equity at Cop30 in BelΓ©m, Brazil. Officials will tout the new NDC as proof of ambition, highlighting its carbon-market potential to attract investors. The focus will also be on affirming the 2030 forest and other land-use (Folu) net sink target.
As Indonesia navigates this complex landscape, experts warn that near-term action is critical. The government's emissions' peak has already been pushed back to 2035, demanding faster cuts later. Indonesia hopes to secure clarity on its renewable targets and phase-out coal commitments at Cop30.