Climate-Energy Governance Model in Indonesia National study

The report identifies a gap between Indonesia's international climate pledges and its domestic energy policies, which continue to favor coal. It highlights a governance model characterized by sectoral silos, informal decision-making influenced by politically exposed persons (PEPs) from the coal sector, and significant financing shortfalls for renewable energy.

• Indonesia has increased its 2030 greenhouse gas emission reduction targets in its 2022 Enhanced NDC to 31.89% using domestic resources and 43.2% with international support.
• The primary energy supply remains dominated by fossil fuels; in 2022, coal accounted for 40.71% and crude oil and products for 30.16%, while the renewable energy share declined from 11.5% in 2021 to 10.4% in 2022.
• There is a significant investment gap between fossil fuels and renewable energy; in 2022, fossil fuel investment reached USD 19.5 billion, whereas renewable energy investment was only USD 1.6 billion.
• The Ministry of Energy and Mineral Resources (MoEMR) is the most influential actor in the climate-energy governance network, though the National Energy Council (NEC) serves as a vital intermediary between ministries.
• Energy policy-making is frequently influenced by informal practices and lobbying from politically exposed persons (PEPs) associated with the coal sector, which hinders the transition to renewables.
• Existing energy-related policies, such as the RUPTL 2021-2030, are viewed as setbacks to renewable targets because they continue to allow significant coal use through 2050.
• The State Electricity Company (SEC) is a central actor in the electricity sector, managing the RUPTL and implementing green projects, including 522 projects under the Just Energy Transition Partnership (JETP).
• Indonesia faces a massive funding gap for its energy transition, with the total value of financial support reaching less than 37% of the projected financing needed by 2025.
• Several fossil fuel companies are diversifying into low-carbon businesses, including investments in solar PV, geothermal, and electric vehicles.

APA

Santoso, D., Suroso, A., Prilandita, N., Anindito, D. B., & Hastari, M. A. (2023). Climate-Energy Governance Model in Indonesia National study. Climate Strategies. https://climatestrategies.org/wp-content/uploads/2023/09/230905_Report_Indonesia.pdf

Chicago

Santoso, Djoko, Abi Suroso, Niken Prilandita, Dhimas Bayu Anindito, and Mulia Asri Hastari. Climate-Energy Governance Model in Indonesia National study. Climate Strategies, 2023. https://climatestrategies.org/wp-content/uploads/2023/09/230905_Report_Indonesia.pdf.

Wikipedia

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BibTeX

@techreport{santoso2023climateenergy, author = {Santoso, Djoko and Suroso, Abi and Prilandita, Niken and Anindito, Dhimas Bayu and Hastari, Mulia Asri}, title = {{Climate-Energy Governance Model in Indonesia National study}}, institution = {Climate Strategies}, year = {2023}, month = aug, url = {https://climatestrategies.org/wp-content/uploads/2023/09/230905_Report_Indonesia.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }