Indonesia

Indonesia’s imports of oil have rapidly increased in recent years. This resource-rich nation is the world’s fourth-largest producer of coal and Southeast Asia’s biggest gas supplier. The country is the largest producer of biofuels worldwide and it is scaling up efforts to exploit its renewable energy potential.

Indonesia

Key energy statistics

Key recommendations, 2015

  • Resolutely decrease fossil fuel subsidies

    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.

  • Foster co-ordination in energy policy making and regulation

    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.

  • Improve the energy investment framework

    Speed up decision making and open the energy sectors to market-based mechanisms for prices and fuel choices.

  • Establish a single office within the Investment Coordination Board

    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.

  • Foster the development of electricity and gas markets

    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.

Policies

Policy
Country
Status
Jurisdiction