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.
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.
December 17, 2019
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.”
Highlights
The panel focused on sharing lessons and best practices on fossil fuel subsidy reform and pricing based on country experience from N
Reports: Energy Transition in Support of the Low-Carbon Development Initiative in Indonesia: Transport sector
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.
Blog: Indonesians are demanding climate action. How can the government answer their calls?
October 16, 2019
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Philip Gass
Thousands of people, youth especially, were calling for Indonesia and countries around the world to live up to their commitments on climate change. Students were coming together to demonstrate that they were no longer willing to simply go along with what their leaders were proposing. How can the government answer their calls?
Press Release: Indonesia has potential to exceed its renewable energy targets: Report
September 25, 2019
A new report shows that the Government of Indonesia could exceed its renewable energy targets with a few adjustments to its policy approach.
Released today in Jakarta, the report by the International Institute for Sustainable Development (IISD) recommends effective policy changes that would boost sustainable energy investments and allow Indonesia to meet its commitment to the Paris Agreement.
Reports: Getting to 23 Per Cent: Strategies to scale up renewables in Indonesia
September 24, 2019
As part of the Paris Agreement, Indonesia committed to reducing greenhouse gas emissions by 29 per cent below its baseline emissions by 2030 (and by 41 per cent conditional on international support). In addition to the 23 per cent renewable energy goal, Indonesia also has a target of reaching 100 per cent electrification ratio by 2020.
Press Release: Indonesia would benefit from removing coal price cap: report
May 7, 2019
Indonesia's Coal Price Cap: A barrier to renewable energy deployment highlights alternative strategies to sustain PLN’s finances without harming the integration of renewable energy with its health and environmental benefits.
Policy Briefs: Indonesia's Coal Price Cap: A barrier to renewable energy deployment
May 7, 2019
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Richard Bridle
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Anissa Suharsono
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Mostafa Mostafa
Indonesia's coal price cap encourages the consumption of coal while slowing the integration of renewable energy into the country's power grid.
Press Release: Statement on Italy and Indonesia Fossil Fuel Subsidy Peer Review
April 18, 2019
The International Institute for Sustainable Development commends the governments of Indonesia and Italy on the release of their fossil fuel subsidy peer review results.