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.
This policy brief presents and discusses the most recent energy policy developments in Indonesia. It also considers measures designed to mitigate the economic and social impacts of the COVID-19 pandemic crisis implemented up to May 2020.
COVID-19 and low global energy prices have hit Indonesia’s fossil fuel sector hard. The country's stimulus has focused on public health and social safety nets; its energy sector, meanwhile, is receiving tax incentives.
While solar energy has exploded in India and the Gulf Cooperation Council region, it has lagged significantly in Indonesia. This report examines why this has been the case and what Indonesia can do to catch up to others in growing the renewable energy sector in the country.
Global Subsidies Initiative, together with the Nordic Council of Ministers, hosted a side event during the 25th UN Conference of the Parties (COP 25) Climate Conference: “Raising NDC Ambition to Reach Climate Action Goals: Fossil fuel subsidies, energy pricing and swaps.”
The panel focused on sharing lessons and best practices on fossil fuel subsidy reform and pricing based on country experience from N
Implementing an effective pricing mechanism is necessary for Indonesia to complete its landmark fuel subsidy reforms and prevent backsliding into expensive subsidy policies. The current pricing regime aims to deliver a public service but inadvertently contributes major social costs: air pollution and associated illness, greenhouse gas emissions and traffic congestion.