Jakarta. Chief Economic Affairs Minister Airlangga Hartarto said Tuesday that Indonesia had solid fundamentals to boost its green economy transformation.

Indonesia aims for 31.89% reduction in greenhouse gas emissions through its nationally determined contribution (NDC) on its own. It will raise the target to 43.20%. To this end, the country will embrace three main pillars: green energy; green economy; and green job creation.

"This grand ambition certainly requires a solid macroeconomic foundation for this transformation to be sustainable," Airlangga told a seminar in Balikpapan.

Indonesia's economy grew 5.04% year-on-year in Q3 2025. Inflation also remained under control at 2.92% yoy as of Dec. 2025. The government expects the economy to grow 5.2% in 2025, and 5.4% the following year. The Jakarta Composite Index (JCI) reached a record high. The manufacturing PMI remained expansive at 51.2%. The national consumer confidence index level remains optimistic at 123.5.

Indonesia's trade balance in November 2025 also recorded a surplus of $2.66 billion, with a cumulative surplus from January to November 2025 reaching $38.54 billion. This enabled Jakarta to enjoy a positive trade balance for 67 months in a row. Investments from domestic and foreign investors totaled Rp 1,931 trillion, representing a 12.7% yoy growth. Foreign exchange reserves reached a high level of $156.5 billion at the end of December 2025. Maintained credit growth of 9.3% (yoy), primarily driven by investment credit, also provides a strong foundation for economic stability and fiscal space to support strategic investments, including the development of the clean energy sector.

Efforts to accelerate the energy transition are a concrete step for Indonesia toward energy sovereignty and the creation of new, clean, and sustainable sources of economic growth. Supported by abundant natural resources, Indonesia's renewable energy potential stands at 3,886 gigawatts (GW), with Kalimantan contributing approximately 517 GW, dominated by solar power.

To optimize this potential, the government is eyeing the construction of a green super grid spanning approximately 70,000 kilometers. Indonesia is also ramping up its biofuel policy, ramping up the mandatory palm oil content from 40% (B40) to 50% (B50). The country is also eyeing environmentally friendly aviation fuels. Other efforts include the use of hydrogen, nuclear energy, green ammonia, as well as carbon capture and storage/CCS/CCUS technology.

Indonesia also continues to promote green economy through its large-scale downstream industry development. The government wants to process the country's abundant raw commodities into high-value products. This includes silica sand into solar panels and utilizing strategic minerals for electric vehicle battery production.

This green economy switch can also open up real job opportunities on a large scale, especially for the younger generation. The transition to a green economy is projected to create around 4.4 million new jobs, with the share of green workers reaching around 3% of the total national workforce by 2029. These opportunities cover a variety of strategic fields, from renewable energy technicians and environmental management to smart city management.

"To support human resource readiness, the government is implementing a National Internship Program for 100,000 university graduates, with a stipend equivalent to the minimum wage. The government is preparing the ecosystem and policy direction, so students are expected to equip themselves to fill strategic roles in the industry," Airlangga said.

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