Increasing energy security: 8 ways Indonesia is partnering with the United Nations

As global energy markets face continued volatility, Indonesia is accelerating efforts to safeguard its energy security — ensuring reliable, affordable and resilient energy for households, businesses, and critical services. For years, United Nations agencies have partnered with the Government of Indonesia and state-owned electricity company PT Perusahaan Listrik Negara (PLN) to help diversify the country’s energy sources, improve energy efficiency, and strengthen resilience. While advancing the green transition and reducing greenhouse gas emissions, this directly reinforces the country’s ability to withstand global shocks. 

Here are the 8 ways in which the United Nations has partnered with Indonesia to build a more secure and future-proof energy system. 

1. Strengthening the electricity grid to integrate more renewable power 

To make Indonesia’s power system more resilient, PLN is leading a major drive to modernize the country’s electricity grid. The United Nations Office for Project Services (UNOPS) is contributing to the development of a new smart control centre, and is advising on national battery storage standards. PLN and UNOPS have identified more than 2 GW of solar potential for integration. These improvements contribute to PLN’s operational priorities to stabilise the electricity system, reduce outages and better protect Indonesia from global fossil fuel price swings.   

2. Improving national energy efficiency 

Using less energy through increased efficiency is an important contributor to energy security. In support of efforts led by the government and PLN, UNOPS and partners carried out energy efficiency audits and advanced policy alignment under the Just Energy Transition Partnership (JETP). This has helped optimize electricity use, which in turn lowers demand across the grid, ensuring more stable and affordable supply. 

3. Making Indonesia’s industries more energy efficient 

Improving the energy efficiency of industrial production is a focus area under the national energy plan. The United Nations Industrial Development Organization (UNIDO) is collaborating with the Government to reduce national energy demand in Indonesia’s most energy intensive sectors. In the fertilizer industry, Resource Efficient and Cleaner Production (RECP) measures supported by UNIDO enabled participating companies to avoid 328,000 tonnes of CO₂-equivalent emissions per year, while also generating significant cost savings and increasing competitiveness.  

In parallel, UNIDO supports the Ministry of Industry in the rollout of ecoindustrial parks, helping these parks in planning, energy efficiency, the use of renewable energy, wastewater recycling, solid waste management, and the capacity-building of personnel for increased resource efficiency. These efforts reduce pressure on Indonesia’s energy supply, strengthen resilience, and support long-term energy security. 

A UNOPS initiative helps to increase the resilience of heavy industry through off-grid renewable power generation. It involves supporting the government in the design of actionable pathways for the transition of metal and mining industry players to cleaner energy. This also helps to ensure that exports will remain competitive in the face of upcoming international carbon border tariffs. 

4. Mobilising SDG financing to fund the energy transition 

Indonesia’s Electricity Supply Business Plan (2025–2034) outlines a pathway to expand renewable energy generation, with a target of 42.6 GW of new capacity by 2034. Achieving this will require an estimated US$ 183–188 billion in investment. The Government is working to unlock large-scale financing for renewable energy and grid resilience through instruments such as SDG bonds, green bonds, blended finance, and credit-enhanced investment tools – with the support of the United Nations. The United Nations Development Programme (UNDP) is partnering with the Government to develop blended financing mechanisms that can mobilize diverse sources of funding, reduce reliance on volatile fossil fuel markets, and expand clean energy supply. 

5. Supporting workforce planning and social protection in energy diversification 

Long-term energy security relies on diversification and stable, well-managed energy transition processes. The International Labour Organization (ILO) is helping several regions in Indonesia to achieve just energy transition by establishing inclusive consultation platforms, identifying potential economic sectors for new jobs and skill sets, and protecting impacted workers through reskilling and upskilling initiatives, as well as labour protection. This prevents labour displacement shocks, maintains regional stability, and ensures that changes in the energy sector support national resilience.  

Focusing on both the human and institutional side of increasing the role of renewables in the country’s energy mix, UNOPS supports the integration of just transition principles into the JETP. It is funding specialized workforce development programmes to retrain workers for the green economy.  

6. Greening Indonesia’s blue economy with cleaner energy technologies 

Clean technologies lower emissions and insulate coastal communities from fuel price volatility. By introducing solar-powered electric boat engines, eco-friendly cooler boxes, and improved cold storage, UNDP helped more than 2,400 small-scale fishers reduce fuel costs and stabilize their livelihoods. Fishers have also received training to use, manage, and maintain these tools, ensuring they can sustain the benefits over time.  

7. Building climate resilient communities using low emission technologies 

Climate-resilient communities are better equipped to withstand extreme weather, reducing risks to local energy infrastructure and supply continuity.  

UNDP helped to install 1.1 MW of solar mini-grids across 22 remote villages, delivering reliable electricity to 3,450 households and 22 public facilities. Communities saw energy costs drop by up to 40%, while emissions were lowered by 1,800 tonnes of CO₂ annually. Local operators — nearly half of them women — were trained to maintain the systems, strengthening long-term energy reliability far from the national grid.  

In parallel, the Ministry of Environment’s Climate Village initiative, supported by UNOPS, has reached 285,000 residents in South Sumatra. Communities received training on renewable energy, low emission technologies, and circular economy solutions.  

8. Empowering women and marginalized groups to adopt clean energy solutions 

Facilitating women’s participation in the green energy transition is a stated government objective. UN Women and the United Nations Environment Programme (UNEP) have supported over 400 women community leaders and entrepreneurs in adopting climate-smart technologies, such as solar drying technology, biogas for cooking, and solar water pumps. These efforts position women as agents of change in climate mitigation and adaptation.

Energy security in support of the SDGs 

“From grid modernization to industrial efficiency, from securing funding to community based solar systems, the UN is partnering with the Government to support its groundbreaking work in strengthening the country’s energy security,” said Gita Sabharwal, United Nations Resident Coordinator in Indonesia. “These initiatives reduce dependence on volatile global energy markets, boost supply reliability, and ensure that communities — from major industrial centres to remote villages — are contributing to a resilient future.”