Indonesia's Energy Policy Briefing | February 2022
This edition of Indonesia’s Energy Policy Briefing offers an update on the main measures undertaken in the context of the second year of the COVID-19 pandemic and related to subsidies to fossil fuels, the power sector, and renewable energy.
It is against this background that another increase in fossil fuel subsidies is projected for 2022: up to IDR 134 trillion (USD 9.34 billion) in 2022, an increase from IDR 128.5 trillion (USD 8.80–9.05 billion) in 2021 and IDR 115.69–116.53 trillion (USD 7.94–7.99 billion) in 2020. At the same time, investments in renewable energies stalled and reached only 74% (USD 1.51 billion) of the targeted USD 2.04 billion in 2021. Thus, with a share of only 11.5% of renewable energies in its electricity mix for 2021, Indonesia also missed the target of a 14.5% share. This was caused by project delays due to the COVID-19 pandemic, according to the Indonesian government.
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