The Effect of Environmental, Social, and Governance (ESG) Performance in Shaping Indonesia's Energy Transitions

ESG factors are essential for determining an equitable and sustainable energy future. Using the Autoregressive Distributed Lag approach, this study investigates the effect of ESG performance on Indonesia's energy transition. The results show that the governance index has a positive effect on energy transition, while the environmental and social indices have a negative impact in the short run. In the long run, however, all three ESG indexes support the transition to clean energy. ESG must be given top priority by Indonesian authorities in energy transition initiatives to enable a smooth transition and support a sustainable and secure energy future for the nation.