The GSI program of work for Indonesia undertakes research and policy engagement on subsidies for fuel consumers and producers, as well as breaking down barriers to renewable energy and ensuring long-term, sustainable reform processes.
Indonesia’s Ministry of Energy and Mineral Resources estimates that around six million households are still without access to electricity, and large investments are needed to supply reliable power across the country.
Coal is a central focus in this quest, and the Indonesian government expects it to continue to play a significant role in the decades to come. However, coal has harmful environmental and health impacts, while cleaner, renewable energy alternatives are becoming increasingly cost-competitive.
As part of its work on energy policy and sustainable development in Indonesia, the Global Subsidies Initiative (GSI) of the International Institute for Sustainable Development (IISD) publishes a regular briefing on issues related to energy subsidies.
There are two new consultancy opportunities available with our team. More information is available below:
Consultant on Indonesia’s Energy Policy and Investment (within IISD’s Energy Program, based in Indonesia)
Consultant on Indonesia’s Health and Energy (within IISD’s Energy Program, based in Indonesia)
Application deadline for both positions is 17 December 2017.
The Government of Indonesia is considering reform of its consumer subsidies for liquefied petroleum gas (LPG) due to its rising fiscal cost: IDR 25 trillion (USD 1.9 billion) in 2016: around half of its total energy subsidy expenditure.
Indonesia’s Ministry of Energy and Mineral Resources Ignasius Jonan recently announced that there would be no new coal plants in Java. The announcement heralds, at last, a step away from the coal-dominated future that had been proposed. Why has this decision been taken? And how should Indonesia seek to power its economy with coal now taken off the menu?
Indonesians’ lungs have been exposed to significant pollution in the past few years, from forest fire haze to increasing amounts of motor vehicle exhaust. A study looking at the greater Jakarta area attributed 3,700 premature deaths per year to air pollution from 2012 to 2015. The national and regional governments of Indonesia are trying to tackle some of these issues through, for example, banning land clearance by burning and improving public transit. But there’s one area, power generation, where current government policies are on course to make Indonesia’s air pollution worse.
The assignment is part of the research and development technical assistance that aims to develop a theoretical and empirical framework to define and measure fossil fuel subsidies and assess the socio-economic impact of its elimination in selected Asia Development Bank developing member countries.
Short-term gain can lead to long-term pain. This might be the case with Indonesia’s recent decision to bet on coal as its preferred source to supply reliable and affordable electricity. Indonesia’s decision comes at a time when the rest of the world is moving in the opposite direction: countries are increasingly switching from coal to renewables and encouraging competition between power generators to obtain the best prices.