Energy Subsidies in Indonesia

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.

Research

Objectives

Reduce expenditure on fossil fuel subsidies that promote unsustainable environmental and social impacts
Reform subsidies to level the playing field for clean energy
Improve the fair social distribution of subsidy expenditure
Build a greater understanding of the negative health impacts of fossil fuels, and how these are exacerbated by fossil fuel subsidies

Collaborations

In carrying forward this work, the Global Subsidies Initiative has collaborated with a number of organizations, including Tim Nasional Percepatan Penanggulangan Kemiskinan, Universitas Gadjah Mada, European Climate Foundation, ENERGIA, and the Embassies of Denmark and Sweden.

FAQ: Indonesia

September 15, 2017

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.

Reports: Switching Fossil Fuel Subsidies in Indonesia to Support a Green Recovery

This brief looks at how Indonesia can start actively promoting renewable energy by removing the existing hurdles to its deployment and switching public support from fossil fuels to renewables to meet the country’s clean energy targets.

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Reports: Indonesia’s Energy Support Measures: An inventory of incentives impacting the energy transition

June 21, 2022

A first-of-its-kind report of all energy support measures available in Indonesia, including coal, oil and gas, electricity, renewable energy, biofuels, and electric vehicles.

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Press Release: Indonesia Must Quadruple its Annual Renewable Investment Target to Reach its Climate Objectives

March 1, 2022

Indonesia should quadruple its annual investment target for new and renewable energy to over USD 8 billion by 2025, according to a new brief by the International Institute for Sustainable Development.

Policy Briefs: Using Public Funding to Attract Private Investment in Renewable Energy in Indonesia

February 23, 2022 | Murtiani Hendriwardani , Anna Geddes , Theresia Betty Sumarno , Laura Hohenberger

This brief provides options on how the Government of Indonesia (GoI) can leverage public funding to incentivize private investment in renewable energy.

Policy Briefs: How Indonesia Can Achieve Both a COVID-19 Recovery and Its Climate Targets

October 11, 2021 | Theresia Betty Sumarno , Lourdes Sanchez

This brief reviews how the Government of Indonesia (GoI) has spent its COVID-19 recovery budget and provides recommendations on its future expenditure.

Press Release: Fossil Fuel Subsidies in Indonesia Double with COVID-19 Recovery Package

October 11, 2021

In a new brief, experts warn that fossil fuel subsidies in Indonesia's 2020 COVID-19 recovery package are not in line with climate targets.

Policy Briefs: Taxing Coal to Hit the Goals: A simple way for Indonesia to reduce carbon emissions

August 20, 2021 | Theresia Betty Sumarno , Tara Laan

Taxing coal is a simple and effective means to promote a clean energy transition in Indonesia, and the experience of India demonstrates that it is politically and economically feasible.