Policy Brief Small-scale IPPs in Indonesia

This policy brief argues that small-scale Independent Power Producers (IPPs) are critical for Indonesia to meet its growing electricity demand and renewable energy targets. While the government has implemented feed-in-tariffs (FIT) to create a business case for these projects, significant barriers remain in finance, permitting, and grid operation. The document recommends a policy package providing technical and financial support to IPPs, banks, and government authorities to reduce risks and lower project costs.

• Independent Power Producers (IPPs) are considered essential for Indonesia's future energy system as they allow for the expansion of electricity infrastructure through private investment rather than public budgets. They help address rising power demand, which is projected to grow by more than 8% annually until 2020, and support the goal of reducing dependence on oil-based diesel generation.
• Indonesia aims for a 17% contribution of new and renewable energy sources in its energy mix by 2025, as per Presidential regulation Perpres No.5/2006. Small-scale renewable capacity (defined as facilities ≤ 10 MWe) is expected to contribute over 3,000 MW by 2020, representing more than 25% of the total anticipated renewable capacity of 11.7 GW in the PLN capacity plan.

APA

Hekkenberg, M., & Cameron, L. (n.d.). Policy Brief Small-scale IPPs in Indonesia. Climate and Development Knowledge Network. https://cdkn.org/sites/default/files/files/ECN-Policy-Brief-Indonesia-small-scale-IPPs.pdf

Chicago

Hekkenberg, Michiel, and Lachlan Cameron. Policy Brief Small-scale IPPs in Indonesia. Climate and Development Knowledge Network, n.d. https://cdkn.org/sites/default/files/files/ECN-Policy-Brief-Indonesia-small-scale-IPPs.pdf.

Wikipedia

{{cite report |last1=Hekkenberg |first1=Michiel |last2=Cameron |first2=Lachlan |title=Policy Brief Small-scale IPPs in Indonesia |publisher=Climate and Development Knowledge Network |url=https://cdkn.org/sites/default/files/files/ECN-Policy-Brief-Indonesia-small-scale-IPPs.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{hekkenbergndpolicy, author = {Hekkenberg, Michiel and Cameron, Lachlan}, title = {{Policy Brief Small-scale IPPs in Indonesia}}, institution = {Climate and Development Knowledge Network}, url = {https://cdkn.org/sites/default/files/files/ECN-Policy-Brief-Indonesia-small-scale-IPPs.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }