Indonesia
Association country
Energy system of Indonesia
Policies
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Key recommendations
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Implement the phase-out timetable alongside a large-scale and long-term communication campaign on the necessity, timeline and reallocation of state expenditures, including compensatory measures for the poor, and social and infrastructure development investments that benefit the entire population.
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Ensure consistency between modelling scenarios, targets, and implementation and focus on the quality of legislative and regulatory processes by clarifying competencies, enhancing stakeholder consultations, defining deliverables and assigning accountability at national and sub-national levels.
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Speed up decision making and open the energy sectors to market-based mechanisms for prices and fuel choices.
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To facilitate infrastructure investments in renewable energy, electricity and natural gas, set up an office, which would advise and support investors in obtaining the necessary permits and licences from central and local institutions.
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Develop and implement an integrated, long-term development plan for natural gas infrastructure, reform wholesale natural gas pricing and allocation mechanisms, and establish an independent downstream regulator for natural gas and electricity, with the long-term goal of a national wholesale market and more efficient use of gas.