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

The report finds that Indonesian government support for fossil fuels significantly outweighs support for renewable energy, with 94% of annual allocations averaging coal, oil, gas, and fossil fuel-based electricity, compared to just 1% for renewables. Between 2016 and 2020, total energy support measures rose by 38% to IDR 279 trillion, while specific support for renewable energy decreased from IDR 3 trillion to IDR 2 trillion. The analysis indicates that 77% of identified measures benefit energy producers, and that fossil fuel subsidies create a lock-in effect that hinders the competitiveness of renewable energy and drains public finances.

• Government financial support for fossil fuels is vastly higher than for renewable energy, with an annual average of 94% allocated to coal, oil, gas, and fossil fuel-based electricity, while renewable energy received only 1%.
• Total energy support measures increased by 38% from IDR 203 trillion in 2016 to IDR 279 trillion in 2020, with the fossil fuel sector being the primary beneficiary.
• While fossil fuel incentives grew by 30% to at least IDR 246 trillion between 2016 and 2020, support for renewable energy declined from IDR 3 trillion in 2016 to IDR 2 trillion in 2020.
• The majority of energy support measures benefit producers rather than consumers; 77% (60 out of 78 measures) benefit producers, while only 20% support consumers.
• Fossil fuel support impedes the energy transition by locking in fossil fuel production and lowering prices, which makes it more difficult for renewable energy 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} }