Indonesia’s Energy Support Measures: An inventory of incentives impacting the energy transition

This report by the International Institute for Sustainable Development provides an inventory of energy support measures in Indonesia from 2016 to 2020, analyzing whether fiscal policies align with the country's goal of reaching net-zero emissions by 2060.

• Between 2016 and 2020, government support for fossil fuels significantly outweighed support for renewable energy. On average each year, 94% of support was allocated to coal, oil, gas, and fossil fuel-based electricity, while only 1% was allocated to renewable energy.
• Total energy support measures increased by 38% from IDR 203 trillion in 2016 to IDR 279 trillion in 2020. During this period, fossil fuel incentives grew by 30% to at least IDR 246 trillion, whereas renewable energy support decreased from IDR 3 trillion in 2016 to IDR 2 trillion in 2020.
• The majority of identified support measures benefit producers rather than consumers. Out of 78 identified measures, 77% (60 measures) benefited energy producers, while only 20% supported consumers, with the remainder benefiting both.
• High levels of fossil fuel support hinder Indonesia's energy transition and its targets of 23% renewable energy in the mix by 2025 and net-zero emissions by 2060. This support creates fossil fuel dependence and lowers prices for fossil-sourced electricity, making it difficult for renewables to compete.

APA

,, A. S. H. B. S. K. M. S. (2022). Indonesia’s Energy Support Measures: An inventory of incentives impacting the energy transition. International Institute for Sustainable Development. https://www.iisd.org/publications/report/indonesia-energy-subsidies

Chicago

,, Anissa Suharsono,Murtiani Hendriwardani,Theresia Betty Sumarno,Jonas Kuehl,Martha Maulidia,Lourdes Sanchez. Indonesia’s Energy Support Measures: An inventory of incentives impacting the energy transition. International Institute for Sustainable Development, 2022. https://www.iisd.org/publications/report/indonesia-energy-subsidies.

Wikipedia

{{cite report |last1=, |first1=Anissa Suharsono,Murtiani Hendriwardani,Theresia Betty Sumarno,Jonas Kuehl,Martha Maulidia,Lourdes Sanchez |title=Indonesia’s Energy Support Measures: An inventory of incentives impacting the energy transition |publisher=International Institute for Sustainable Development |date=21 June 2022 |url=https://www.iisd.org/publications/report/indonesia-energy-subsidies |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{2022indonesias, author = {,, Anissa Suharsono,Murtiani Hendriwardani,Theresia Betty Sumarno,Jonas Kuehl,Martha Maulidia,Lourdes Sanchez}, title = {{Indonesia’s Energy Support Measures: An inventory of incentives impacting the energy transition}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = jun, url = {https://www.iisd.org/publications/report/indonesia-energy-subsidies}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }