ENERGY TRANSITION AND GREEN ECONOMY IN SOUTH SUMATERA: IDENTIFYING NON-EXTRACTIVE SECTORS AND REGIONAL POLICY STRATEGIES

Maudy Noor Fadhlia; Roy Setiawan; Nur Aslamiah Supli; I Kadek Andre Nuaba

doi:10.24198/sosiohumaniora.v28i2.68021

ENERGY TRANSITION AND GREEN ECONOMY IN SOUTH SUMATERA: IDENTIFYING NON-EXTRACTIVE SECTORS AND REGIONAL POLICY STRATEGIES

Maudy Noor Fadhlia, Roy Setiawan, Nur Aslamiah Supli, I Kadek Andre Nuaba

Abstract

The Province of South Sumatra faces structural challenges in reducing its dependence on extractive sectors, particularly coal and oil & gas, which have long been the primary contributors to its Gross Regional Domestic Product (GRDP). In line with Indonesia’s national commitment to Net Zero Emissions (NZE) by 2060 and the issuance of Presidential Regulation No. 14 of 2024 on CCS/CCUS, the transition toward a green economy has become an urgent necessity. This study aims to identify key non-extractive sectors that can support a sustainable energy transition based on South Sumatra’s local potential. Employing a mixed methods explanatory sequential approach, the research integrates secondary data from Statistics Centre Indonesia (2019-2025), regional development plans (RPJMD and Renstra), as well as primary data from Bappeda South Sumatra, WRI Indonesia, and IESR. The primary data are used to strengthen sectoral mapping, policy analysis, and social validation of regional energy transition strategies. Preliminary findings indicate that sustainable agriculture, nature-based tourism, and the digital economy hold significant potential for driving green economic diversification and creating environmentally friendly employment. The study formulates policy recommendations grounded in local strengths and sustainability principles to support the achievement of the Sustainable Development Goals (SDGs), particularly SDG 7, 8, 9, and 13. These findings are expected to reinforce South Sumatra’s role as a green development laboratory in Indonesia and serve as a strategic reference for post-extractive regional development planning.

Keywords

Energy Transition; Green Economy; Non-Extractive Sectors; South Sumatra; Sustainable Policy

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DOI: https://doi.org/10.24198/sosiohumaniora.v28i2.68021