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Energy Policies Beyond IEA Countries: Indonesia 2015
Indonesia can claim many economic and political achievements over the last 15 years: the country posted consistently high economic growth rates, joined the G20, stabilised its young democracy, and devolved budgetary power and decision making. Extending this track record further depends on Indonesia’s ability to deliver sustainable and sufficient energy supply to markets and ultimately to consumers. Even though it remains a net energy exporter due to the expansion of its coal and liquid biofuel production, the country is consuming more energy as a result of rising living standards, population growth and rapid urbanisation. Indonesia is already highly dependent…
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Energy Policy Review of Indonesia
…Indonesia a key global exporter of oil, gas, and coal. However, Indonesia now faces the serious challenge of fast-rising domestic energy demand with declining oil and gas production. The country’s energy policy makers are looking closely at domestic energy requirements and best policies to meet these needs. This includes moving prices towards international parity, improving the energy sector investment climate, and developing electricity generation capacity. While some very difficult decisions have been made over recent years, many challenges remain. Energy Policy Review of Indonesia assesses the country’s major energy issues. The Review offers an analysis of Indonesia…
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Indonesia Case Study
Cost of Capital Observatory Case Study The Cost of Capital Observatory is an initiative from the IEA, the World Economic Forum, ETH Zurich and Imperial College London. The aim of the Observatory is to increase transparency in the energy sector and inspire investor confidence, especially in emerging and developing countries where data on financing costs is scarcer.Case Studies include lessons learnt of how policymakers, together with the private sector, development finance institutions and other entities managed to mitigate risks and mobilise capital for clean energy sectors across the emerging and developing world.
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Navigating Indonesia’s Power System Decarbonisation with the Indonesia Just Energy Transition Partnership
Indonesia is one of the fastest growing economies in the world and with its rapidly growing energy demand, abundant energy and mineral resources, it is set to play a key role in the global economic and energy landscape. Decarbonising its power system has been identified as a key enabler to achieve its pledge for net zero emissions by 2060, as coal power dominates its electricity mix. To support Indonesia’s power sector decarbonisation efforts, the Just Energy Transition Partnership was established during a G20 summit in Bali, in November 2022. The first deliverable of the Just Energy Transition Partnership, which…
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Carbon Capture, Utilisation and Storage in Indonesia
Indonesia’s remarkable economic growth over the past half-century has had major implications for its energy sector and emissions, with coal playing a large role in both. Young power plants and industrial facilities producing cement, iron and steel will need clean energy alternatives and energy efficiency measures in order for Indonesia to reach its net zero emissions by 2060 target. Carbon capture, utilisation and storage (CCUS) can be an important technology to help achieve that goal.Indonesia is already taking meaningful steps, finalising the first regulatory framework for CCUS in Southeast Asia in early 2023. However, for CCUS to…
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An Energy Sector Roadmap to Net Zero Emissions in Indonesia
Indonesia is the world’s fourth-most populous country and is set to become the world’s fourth-largest economy by mid-century. The choices that Indonesia makes now and in the decades to come will have a significant bearing on the world’s energy markets and on international efforts to reach collective climate goals.Indonesia, a member of the IEA family since 2015, has committed to reach net zero emissions by 2060 or before – an ambitious task given the country’s growth objectives and status as a globally important consumer and producer of coal. However, with a transition to…
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Enhancing Indonesia’s Power System
…Indonesia in tackling short-term power system challenges, by achieving key targets such as reaching a 23% share of renewable energy in the national electricity mix by 2025 in a secure and affordable fashion, and by making grids progressively smarter. The assignment included the organisation of a number of workshops for Indonesian stakeholders and a techno-economic study performed by the IEA. It benefited from the support of the state-owned utility Perusahaan Listrik Negara (PLN).This public report summarises the information gathered from the workshops and presents the results of the study in a set of recommendations for Indonesia…
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Attracting private investment to fund sustainable recoveries: The case of Indonesia's power sector
…to energy investments, the cost of financing – a major determinant of the economics of more capital-intensive clean energy technologies – remains high in most emerging countries. Public support, including from international development institutions, is often critical to enhance the investment proposition of renewables. With emerging and developing countries expected to account for 90% of global power demand growth over the next decade, there is a large untapped potential for cleaner sources to play a more prominent. This is particularly true in Indonesia – the largest economy in Southeast Asia and an International Energy Agency (IEA) association country – where the electricity sec...
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Energy Supply Security of Indonesia
Indonesia’s total primary energy supply (TPES) stood at 209 Mtoe in 2011 – a 27% increase from its consumption in 2002 (165 Mtoe) according to the IEA statistics. With a rapidly growing economy as well as the fourth most populous country in the world, its energy consumption grows at around 7% per year. The country’s national energy policy forecasts that TPES will reach 400 Mtoe in 2025, 480 Mtoe in 2030 and 1 000 Mtoe in 2050.
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Partner Country Series - Fossil Fuel Subsidy Reform in Mexico and Indonesia
…any of its perceived social benefits, which can be achieved by other more effective means. Drawing on its global experience and extensive analysis of fossil fuel subsidies, the IEA undertook this in-depth look at reforms of fossil fuel subsidies in Mexico and Indonesia. These two case studies provide an overview of fuel subsidies in each country and then focus on transport fuels in Indonesia and electricity in Mexico. The study sets out a series of policy recommendations for both countries, and concludes that governments should not limit fuel subsidy reforms to technical measures. Rather they should engage the public…