Bridging the socioeconomic divide: Unveiling the impact of energy transition on communities
DOI:
https://doi.org/10.61511/enjust.v2i1.2025.1747Keywords:
energy transition, socioeconomic impact, renewable energy, public support, IndonesiaAbstract
Background: This study focuses on Indonesia’s energy transition, a shift from non-renewable to renewable energy sources aimed at reducing environmental impacts and promoting socioeconomic benefits. The transition’s effect on energy consumption, employment, and public support is analyzed, with particular attention to challenges in remote areas. Method: This study uses a qualitative approach with Systematic Literature Review (SLR) to analyze the energy transition in Indonesia based on 24 journals and government regulations. The analysis was conducted using the Driving Forces – Pressures – State – Impacts – Responses (DPSIR) framework, which links social, economic, and environmental factors to provide impacts and responses to the energy transition. Findings: The energy transition has significant socioeconomic impacts, such as increased public awareness of renewable energy's importance. Notable changes include rising energy consumption in industrial and construction sectors, job creation with around 400,000 new opportunities in renewable energy, and growing interest in electric vehicles and rooftop solar panels. However, challenges related to cost, infrastructure, and technology reliability remain. Public support for energy transition initiatives exceeds 80%. Conclusion: Achieving a successful energy transition requires collaborative efforts from all stakeholders, addressing both the opportunities and challenges to ensure sustainable energy resources and positive socioeconomic outcomes. Novelty/Originality of this article: This study provides a comprehensive analysis of the effects of energy transition on socioeconomic conditions, highlighting the increasing public support for renewable energy and its impact on job creation, energy consumption, and behavioral changes, which have not been extensively explored in existing literature.
References
Abdussamad, H. Z. (2021). Metode penelitian kualitatif. Syakir Media Press.
Arias, A., Feijoo, G., & Moreira, M. T. (2023). Advancing the European energy transition based on environmental, economic and social justice. Sustainable Production and Consumption, 43, 77–93. https://doi.org/10.1016/j.spc.2023.10.013
Azimi, M. N., Rahman, M. M., & Maraseni, T. (2025). Powering progress: The interplay of energy security and institutional quality in driving economic growth. Applied Energy, 378, 124835. https://doi.org/10.1016/j.apenergy.2024.124835
Bradley, P. (2015). Using the DPSIR framework to develop a conceptual model: Technical support document. National Health and Environmental Effects Research Laboratory. https://doi.org/10.13140/RG.2.1.1870.7608
Carrera-Rivera, A., Ochoa, W., Larrinaga, F., & Lasa, G. (2022). How-to conduct a systematic literature review: A quick guide for computer science research. MethodsX, 9, 101895. https://doi.org/10.1016/j.mex.2022.101895
Central Bureau of Statistics. (2023). Neraca energi Indonesia 2018–2022. https://www.bps.go.id/publication/
Cherp, A., Vinichenko, V., Jewell, J., Brutschin, E., & Sovacool, B. (2018). Integrating techno-economic, socio-technical and political perspectives on national energy transitions: A meta-theoretical framework. Energy Research & Social Science, 37, 175–190. https://doi.org/10.1016/j.erss.2017.09.015
Cochrane. (2021). Cochrane handbook for systematic reviews of interventions (6.5). Cochrane Library. https://www.cochranelibrary.com/handbook
Gabriela, K., & Segura, L. (2024). Energy transitions research: An assessment methodology. Society and Economy, 46(2), 275–287. https://doi.org/10.1556/204.2023.00027
Geny, J. (2025, December). IETO: Status and progress of Indonesia’s energy transition. Institute for Essential Services Reform. https://iesr.or.id
Goezet, B., Van Opstal, W., Sebis, G., Günther, J., & Old, R. (2025). A just transition to circular economy: Exploring current and potential social implications exemplary for the value chains batteries, plastics, and textiles (ETC CE Report 2025/8). European Topic Centre on Circular Economy and Resource Use. https://doi.org/10.5281/zenodo.15494624
Impram, S., Nese, S. V., & Oral, B. (2020). Challenges of renewable energy penetration on power system flexibility: A survey. Energy Strategy Reviews, 31, 100539. https://doi.org/10.1016/j.esr.2020.100539
Institute for Essential Services Reform. (2020). National energy general plan (RUEN): Existing plan, current policies implication and energy transition scenario. https://iesr.or.id
Institute for Essential Services Reform. (2023). Indonesia solar energy outlook 2023. https://iesr.or.id
International Labour Organization. (2015). Guidelines for a just transition towards environmentally sustainable economies and societies for all. https://www.ilo.org/global/topics/green-jobs/publications/WCMS_432859/lang--en/index.htm
International Renewable Energy Agency. (2023). Socio-economic footprint of the energy transition: Indonesia. https://www.irena.org
Kandpal, V., Jaswal, A., Santibanez Gonzalez, E. D. R., & Agarwal, N. (2024). The economics of sustainable energy transition and the circular economy. In V. Kandpal, A. Jaswal, E. D. R. Santibanez Gonzalez, & N. Agarwal (Eds.), Sustainable energy transition: Circular economy and sustainable financing for environmental, social and governance (ESG) practices (pp. 53–87). Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-52943-6_2
Khaleel, M., & Yusupov, Z. (2025). Advancing sustainable energy transitions: Insights on finance, policy, infrastructure, and demand-side integration. Unconventional Resources, 9(1), 100274. https://doi.org/10.1016/j.uncres.2025.100274
Konovalova, O. A., Nurulin, Y. R., & Skvortsova, I. V. (2023). Innovation management models in the energy sector. International Journal of Technology, 14(8), 291–319. https://doi.org/10.14716/ijtech.v14i8.6846
Lauranti, M., & Djamhari, E. A. (2017). Transisi energi yang setara di Indonesia: Tantangan dan peluang. Friedrich-Ebert-Stiftung Vietnam.
Letari, T., & Inayah, B. (2023). Pedoman mendorong transisi berkeadilan di Indonesia. Climate Strategies. https://climatestrategies.org
Ma, B., & Wang, A. (2025). Exploring the role of renewable energy in green job creation and sustainable economic development: An empirical approach. Energy Strategy Reviews, 58, 101642. https://doi.org/10.1016/j.esr.2025.101642
Majeed, Y., Khan, M. U., Waseem, M., Zahid, U., Mahmood, F., Majeed, F., Sultan, M., & Raza, A. (2023). Renewable energy as an alternative source for energy management in agriculture. Energy Reports, 10(11), 344–359. https://doi.org/10.1016/j.egyr.2023.06.032
Mansouri, N., Nasri, S., Mnassri, A., Lashab, A., Vasquez, J. C., Cherif, A., & Rezk, H. (2025). Electric Vehicle Charging Infrastructure: Impacts and Future Challenges of Photovoltaic Integration with Examples from a Tunisian Case. World Electric Vehicle Journal, 16(7), 349. https://doi.org/10.3390/wevj16070349
Massagony, A., Pandit, R., & White, B. (2025). Political economy of energy policy in Indonesia towards net zero emissions by 2060. Energy for Sustainable Development, 88, 101757. https://doi.org/10.1016/j.esd.2025.101757
Miller, C., Richter, J., & O’Leary, J. (2015). Socio-energy systems design: A policy framework for energy transitions. Energy Research & Social Science, 6, 29–40. https://doi.org/10.1016/j.erss.2014.11.004
Ministry of Energy and Mineral Resources. (2023). Laporan kinerja. https://www.esdm.go.id
Mundaca, L., Busch, H., & Schwer, S. (2018). ‘Successful’low-carbon energy transitions at the community level? An energy justice perspective. Applied Energy, 218, 292-303. https://doi.org/10.1016/j.apenergy.2018.02.146
Muzayanah, I. F. U., Lean, H. H., Hartono, D., Indraswari, K. D., & Partama, R. (2022). Population density and energy consumption: A study in Indonesian provinces. Heliyon, 8(9), e10634. https://doi.org/10.1016/j.heliyon.2022.e10634
Oei, P.-Y., Brauers, H., & Herpich, P. (2020). Lessons from Germany’s hard coal mining phase-out: Policies and transition from 1950 to 2018. Climate Policy, 20(8), 963–979. https://doi.org/10.1080/14693062.2019.1688636
Pambudi, N. A., Firdaus, R. A., Rizkiana, R., Ulfa, D. K., & Salsabila, M. S. (2023). Renewable energy in Indonesia: Current status, potential, and future development. Sustainability, 15(3), 2342. https://doi.org/10.3390/su15032342
Paul, W. (2023). Transisi sumber energi bersih terbarukan (EBT) dalam kelangsungan ekonomi di Indonesia. Jurnal Al-Amar (JAA), 4(1), 23–25. https://ojs-steialamar.org/index.php/JAA/article/view/97
Puspita, D. P., Militina, T., & Effendi, A. S. (2020). Employment Opportunities and Poverty Levels in Pro V Insi Kalimantan Timur. International Journal of Economics, Business and Accounting Research (IJEBAR), 4(01), 141–157. https://doi.org/10.29040/ijebar.v4i01.930
Rahmanitya, N., & Ardiansyah, P. (2023). Indonesia’s just energy transition partnership (JETP) as a strategy for achieving energy security. Journal of International Studies on Energy Affairs, 4(1 SE-Articles), 1–14. https://doi.org/10.51413/jisea.Vol4.Iss1.2023.1-14
Resosudarmo, B. P., Rezki, J. F., & Effendi, Y. (2023). Prospects of energy transition in Indonesia. Bulletin of Indonesian Economic Studies, 59(2), 149–177. https://doi.org/10.1080/00074918.2023.2238336
Sambodo, M. T., Yuliana, C. I., Hidayat, S., Novandra, R., Handoyo, F. W., Farandy, A. R., Inayah, I., & Yuniarti, P. I. (2022). Breaking barriers to low-carbon development in Indonesia: Deployment of renewable energy. Heliyon, 8(4), e09304. https://doi.org/10.1016/j.heliyon.2022.e09304
Sharma, V., & Loginova, J. (2024). Just transition out of coal-fired power: Policy lessons from Australia’s automotive sector closure. Environmental Innovation and Societal Transitions, 51(6), 100835. https://doi.org/10.1016/j.eist.2024.100835
State-Owned Enterprises. (2023). Accelerating digital technology and strengthening inclusive and sustainable transformation. https://www.stateownedenterprises.gov.id
Sugiyono, A., Anindhita, F., Fitriana, I., Abdul Wahid, L. O., & Adiarso. (2019). Outlook energi Indonesia 2019: Dampak peningkatan pemanfaatan energi baru terbarukan terhadap perekonomian nasional. Badan Pengkajian dan Penerapan Teknologi.
World Energy Council. (2024). World energy trilemma 2024: Evolving with resilience and justice. https://www.worldenergy.org
Yang, Y., Xia, S., Huang, P., & Qian, J. (2024). Energy transition: Connotations, mechanisms and effects. Energy Strategy Reviews, 52(2), 101320. https://doi.org/10.1016/j.esr.2024.101320
Zhang, Y., & Zahoor, Z. (2025). The role of energy subsidies, savings, and transitions in driving energy transformations toward net-zero emissions. Energy, 320, 135209. https://doi.org/10.1016/j.energy.2025.135209
Downloads
Published
Issue
Section
Citation Check
License
Copyright (c) 2025 Meilia Istiqomah
This work is licensed under a Creative Commons Attribution 4.0 International License.
