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

This briefing analyzes Indonesia's 2020 COVID-19 recovery budget, highlighting a significant imbalance where funding heavily favored fossil fuels over renewable energy, and provides recommendations to align future spending with the country's climate targets.

• In 2020, Indonesia allocated 19% of its COVID-19 recovery package, totaling USD 7.5 billion, to the energy sector, with the majority of these funds directed toward fossil fuels. This was separate from USD 6.8 billion spent on fossil fuel subsidies in the same year.
• A specific portion of the recovery package, amounting to USD 6.6 billion or 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 currently below its 2025 target of 23%. To meet its Nationally Determined Contribution (NDC) and Net-Zero Emission (NZE) goals, the document recommends that any fiscal stimulus for fossil fuels be conditional on transitioning away from them, and suggests taxing the fossil fuel sector to support recovery and transition.

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} }