East Kalimantan faces deep economic dependence on coal as Indonesia pushes for an energy transition toward renewables, leaving the region vulnerable to economic shocks and labor displacement. Officials acknowledge that over 60 percent of regional revenue and more than 160,000 workers remain tied to fossil fuel industries, yet concrete reskilling or social protection measures are absent. Labor groups warn that workers are at risk of unemployment without safety nets, while economists highlight unaccounted ecological and social costs such as floods and health impacts. Fiscal transfers to the region are declining despite its large contribution to national revenue, prompting calls for a revised revenue-sharing formula to fund renewable energy development and worker training. Advocacy groups argue that ongoing coal expansion contradicts the claimed shift to clean energy, with local communities continuing to bear the brunt of environmental damage. Experts warn that delaying preparation for energy transition will escalate future economic and social burdens.

Nusantara’s solar power plant (PLTS IKN), built across 86 hectares in East Kalimantan, has reached 50 MW capacity and is part of Indonesia’s strategy to develop a low-emission smart city supported by smart grid and energy storage technologies. Authorities target 200 MW by 2032, though current supply remains supplemented by the Mahakam power system. Experts highlight the long lifespan of solar panels and the need for early preparation of e‑waste regulations, noting that most panel materials can be recycled. Otorita IKN outlines a five‑point waste management strategy involving circular economy practices, recycling facilities, regulatory coordination, and public education. Environmental advocates argue that concerns over future solar waste should not overshadow the more immediate and severe pollution associated with coal-fired power plants, which remain prevalent in East Kalimantan. The transition to renewable energy is framed as both an environmental necessity and a policy challenge as Indonesia pursues net‑zero emissions.