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Southeast Asia Indicators Handbook for Just and Inclusive Transitions
Energy demand in Southeast Asia is growing, driven by rapidly growing population and economies, industrialisation and urbanisation. Many countries in the region have set out their own national decarbonisation targets and clean energy transitions commitments.Clean energy transitions in the region present unique opportunities to deliver broad socio-economic benefits, beyond emissions reductions, such as the creation of new decent jobs, economic diversification, reduced energy poverty and improved air quality. Tracking these benefits can help ensure that all parts of society benefit from these changes.In 2024, G20 leaders endorsed ten voluntary G20 Principles for Just and Inclusive Energy Transitions…
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Second Revised/Updated NDC of Indonesia
Indonesia aims at reducing its GHG emissions by 31.89% relatively to a business-as-usual trajectory by 2030, and by 43.20% conditional on the provision of international support. While these reduction targets expressly cover methane, Indonesia’s NDC and LTS-LCCR do not contain any measure relating to methane abatement in the fossil fuel sector.
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Second NDC of Indonesia
Indonesia aims at reducing its GHG emissions by 17% to 30% compared to a business-as-usual trajectory by 2035.
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Indonesia National Standard for Air Conditioning, Refrigerator, and Washing Machine (Ministerial Regulation No.34/M-IND/PER/7/2013)
This regulation enacts the Indonesian standards for air conditioners, refrigerators and washing machines. The standard code for Air Conditioners is SNI IEC 60335-2-40-2009 (Household and similar electrical appliances - Safety - Part 2-40: Particular requirements for electrical heat pumnps, air-conditioners and dehumidifiers), refrigerator is SNI IEC 60335-2-24-2009, and Washing Machine is SNI IEC 60335-2-7-2009. This regulation provides detailed explanation on how the manufacturers and importers need to report their products to accredited institution, which will assess the products appropriately and report to the government their approval/rejection on the Indonesian market.
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Indonesia Value-Added Tax and Import Duty Exemption For Renewable Energy Property
The Regulation of 2010 mainly applies to renewable energy, but also to power plants in general. It stipulates that Import duty exemptions are valid for:
for machinery and capital for renewable energy;
for capital goods required for public electricity supply (on- and off-grid).
Value Added Tax (VAT) exemptions apply to taxable goods imported to develop renewable energy projects, as long as no substitutes are manufactured in Indonesia. Exemptions are valid for 2 years with optional exenstion depending on applicability and feasibility. As of 2016, the exemption is still applicable.
The VAT exemption applies to machinerey (both constructed and dismantled… -
Indonesia Guidelines for Application, Evaluation, and Business and Special Business Permit for Mining Territory Expansion in the context of Mineral and Coal Conservation
…evaluation and process to expand mining territory in business activity. Through this decree, business licence holders could submit their application to expand the mining areas. The Ministry of Energy and Mineral Resources in Indonesia issued the decree to provide guidelines for Business License (WIUP) and Special Business License (WIUPK) Areas for the Conservation of Minerals and Coal. It revokes the previous Ministry Decree No.266k/MB.01/MEM.B/2022, deemed insufficient in providing guidelines for WIUP or WIUPK expansion that prioritize the optimisation of mineral or coal reserves and/or indications of marginal mineral deposits or coal for mineral…
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Indonesia-Australia Comprehensive Economic Partnership Agreement
The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) builds on the existing ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), which lowered both countries import tariffs for energy sector products.The IA-CEPA Investment provisions allow Australian investment and ownership in the following sectors:Power plants with capacity larger than 10MW (up to 95%)Electrical power construction installation, operation and maintenance (up to 67%)Electrical power facility construction (up to 55%)Geothermal power plants with capacity smaller than 10MW (up to 51%)
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Indonesia-Japan Economic Partnership Agreement (IJEPA)
The Indonesia–Japan Economic Partnership Agreement entered into force in July 2008. It provides for the elimination or reduction of import tariffs for most energy product, including: iron, metals, ammonia, steel, aluminium, battery packs and cells, anodes, heat pumps, electric cars, and ICE cars. Specific rules of origins apply in order to qualify for preferential tariff treatment e.g. wholly produced in the parties' territories, materials undergoing change in tariff classification or satisfying a minimum local value content of 40%.
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Indonesia’s Just Energy Transition Partnership (JETP) Comprehensive Investment and Policy Plan (CIPP)
The launch of the Comprehensive Investment and Policy Plan (CIPP) from the Indonesia Just Energy Transition Partnership (JETP) marks the Indonesian government's commitment to accelerate the development of renewable energy by 2050. This project mobilizes funds of 21.6 billion USD to meet renewable energy needs supported by The International Partners Group (IPG) and Glasgow Financial Alliance for Net Zero (GFANZ).
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Indonesia Carbon Trading Scheme (ETS)
…Energy and Mineral Resources of the Republic of Indonesia inaugurated the launch of carbon trading in the electricity generation subsector on Wednesday 22 February 2023, announced in a press release from the Ministry of Energy and Mineral Resources. This launch aims to achieve the Greenhouse Gas emission reduction target in the energy sector in accordance with the enhanced National Contribution (NDC) document. This carbon trading is still in the mandatory stage and is predicted to reduce greenhouse gas emissions by 36 million CO2e in 2030. This carbon trading was first implemented in Indonesia on coal-fired power plant generating units…