Indonesiaʼs energy transition: Dependency, subsidies and renewables

Wong, R. and Dewayanti, A. 2024. Indonesiaʼs energy transition: Dependency, subsidies and renewables. Asia and the Pacific Policy Studies. 11 (2) e391. https://doi.org/10.1002/app5.391

TitleIndonesiaʼs energy transition: Dependency, subsidies and renewables
TypeJournal article
AuthorsWong, R. and Dewayanti, A.
Abstract

Indonesiaʼs economy is highly dependent on the fossil fuel industry as evidenced in measures of non-taxable revenue, energy subsidy, energy mix and regulatory flexibility. To cut carbon emissions by 41% in 2030, the energy system needs to transition faster than anticipated through progressive reforms and investment. Policy makers understandably are fearful of the shocks and unrests resulted from fossil fuel subsidy reform. However, the fears were shown to be an over-reaction, especially if poorer households were supported. The state-owned enterprise, Perusahaan Listrik Negara, is the central player in the tug of war between the fossil fuel and renewable sectors. The government should signal unwavering support for international investment in the renewables, and update the regulation on rooftop solar that boosts return on investment for domestic households. International investors will need modelling of cost competitiveness of wind farms against coal-fired plants in more remote areas.

Article numbere391
JournalAsia and the Pacific Policy Studies
Journal citation11 (2)
ISSN2050-2680
2050-2680
Year2024
PublisherWiley
Publisher's version
License
CC BY-NC-ND 4.0
File Access Level
Open (open metadata and files)
Digital Object Identifier (DOI)https://doi.org/10.1002/app5.391
Publication dates
Published online22 May 2024
FunderNone

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