National Economic Development Transformation In The Direction Of Low Carbon Development

Arif Budimanta, Mohammad Ali Nur Sidiq, Telisa Aulia Falianty, Firdha Najiya, Muhammad Mulya Tarmizi, Arif Amin

Research output: Chapter in Book/Report/Conference proceedingConference contribution


Economic transformation toward low-carbon growth is a top objective for the country's long-term development agenda. The energy sector is the most important in reaching the country's low-carbon development goal. The success of the energy sector transition from brown to green energy will determine the success of national economic transformation process. The purpose of this study is to examine the impact of Indonesia's economic activities on the environment in comparison to peer countries, to examine the development of Indonesia's economic development process towards low-carbon development in several key stages of the national economy, to examine the linkages between the energy sector and other sectors, to examine the process of Indonesia's energy transition towards low-carbon development, and to provide policy recommendations for Indonesia. The cross-country analysis method, multiple linear regression method, input output analysis, and descriptive statistical analysis were all used in the study. The study's findings show that (1) Indonesia's economic activities caused very high environmental degradation between 1970 and 2020; (2) There is a downward trend in the risk of environmental degradation from Indonesia's economic activities, which is consistent with the momentum of the 1945 Constitution Article 33 amendment; (3) Energy sector products such as electricity, coal and lignite, natural gas and geothermal have a high forward linkage. Electricity is the input for 184 other sectors or equivalent to 99.46% of the total sector in Indonesia, as well as coal and lignite at 27.03%, then natural gas and geothermal at 16.22%. Other than that, products in the energy sector have a large multiplier effect for national output; and (4) Finally, the government should fully consider everyones’ participation in Indonesia’s economy and its road to developing the renewable energy based partnerships at all levels. The energy transition will be required if we are to flourish as a people, rather than simply survive, on this planet of ours. We only have one. Only renewed international cooperation and coordination of all state capabilities – a new social contract underwritten by global consensus – can make us prepared, to untangle the current interlocking crises.
Original languageEnglish
Number of pages21
Publication statusPublished - 2021


  • Economic Transformation
  • Low Carbon Growth
  • Energy transition


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