Regional Consultation Forums (FKD) Pave the Way for Just Energy Transition in Coal Regions

25 March 2025

Written by Ade Cahyat, Implementation Manager Indonesia, Innovation Regions for a Just Energy Transition (JET Indonesia), [email protected]  

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© GIZ Indonesia/IKI-JET 

The Regional Consultation Forums (FKD) in East Kalimantan and South Sumatra were officially established through a Governor’s Decree in late 2024 and early 2025. Supported by IKI-JET, FKDs serve as collaborative platforms where local governments, industry, and civil society engage in structured discussions on economic diversification and a just energy transition. 

In East Kalimantan, early 2025 discussions led to agreements on economic transformation, emphasizing policy alignment and key diversification sectors. Initial outcomes: 

  • A preliminary agreement on the objectives of economic transformation in the province, including job creation, securing local government revenue and exports, value addition and community income, alignment with green economy policies, women’s empowerment, and food security 
  • A preliminary agreement on priority economic activities as alternative to coal, coveriing, among others, renewable energy industries (green ammonia, hydrogen, electricity, industrial crops, PV and electric vehicle manufacturing, and ecotourism. 
  • Recognition of the critical role of post-mining land use, highlighting the need for policy synchronization between national and regional governments. 
  • The commitment to four rounds of structured discussions throughout 2025, addressing core challenges such as skill development, infrastructure readiness, and strengthening small and medium enterprises. 

In South Sumatra, preparations for the April 14 kick-off meeting are underway with over 70 participants. Given the regions’ dependence on coal, the shift toward a diverse, sustainable economic model requires collaborative governance, investment incentives, and capacity-building. The FKD is crucial in facilitating this transformation, ensuring businesses contribute to sustainability while empowering impacted communities to shape their economic future. This initiative marks a key milestone in Indonesia’s just energy transition. 

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