How Indonesia Can Achieve Both a COVID-19 Recovery and Its Climate Targets

The document examines the allocation of Indonesia's COVID-19 recovery funds, noting a heavy bias toward fossil fuels over renewable energy, and suggests shifting fiscal stimulus toward renewables to meet climate targets.

• In 2020, Indonesia allocated 19% (USD 7.5 billion) of its COVID-19 recovery package to the energy sector, with the majority directed toward fossil fuels. This was separate from USD 6.8 billion in existing fossil fuel subsidies for that year.
• A significant portion of the recovery package, totaling USD 6.6 billion (16.3% of total support), was used to support fossil fuel state-owned enterprises (SOEs), while USD 910 million was used for electricity subsidies for poor households.
• Indonesia's renewable energy share of 11.2% is significantly below its 2025 target of 23%. The document argues that COVID-19 recovery funds should be used to increase renewable energy investment to meet NDC and Net-Zero Emission (NZE) goals, suggesting that any remaining fossil fuel stimulus be conditional on transitioning away from those fuels.

APA

,, T. B. S. S. (2021). How Indonesia Can Achieve Both a COVID-19 Recovery and Its Climate Targets. International Institute for Sustainable Development. https://www.iisd.org/publications/indonesia-achieve-covid-19-recovery-and-climate-targets

Chicago

,, Theresia Betty Sumarno,Lourdes Sanchez. How Indonesia Can Achieve Both a COVID-19 Recovery and Its Climate Targets. International Institute for Sustainable Development, 2021. https://www.iisd.org/publications/indonesia-achieve-covid-19-recovery-and-climate-targets.

Wikipedia

{{cite report |last1=, |first1=Theresia Betty Sumarno,Lourdes Sanchez |title=How Indonesia Can Achieve Both a COVID-19 Recovery and Its Climate Targets |publisher=International Institute for Sustainable Development |date=11 October 2021 |url=https://www.iisd.org/publications/indonesia-achieve-covid-19-recovery-and-climate-targets |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{2021how, author = {,, Theresia Betty Sumarno,Lourdes Sanchez}, title = {{How Indonesia Can Achieve Both a COVID-19 Recovery and Its Climate Targets}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = oct, url = {https://www.iisd.org/publications/indonesia-achieve-covid-19-recovery-and-climate-targets}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }