Switching Fossil Fuel Subsidies in Indonesia to Support a Green Recovery
Summary
The document argues that Indonesia can accelerate its energy transition by reforming transport fuel and coal subsidies to raise funds for renewable energy, energy efficiency, and grid upgrades. It highlights a specific investment need of IDR 500 trillion to meet 2025 renewable energy goals and suggests that reforming subsidies could provide IDR 166 trillion toward this end.
Key insights
- Indonesia requires approximately IDR 500 trillion in investment to reach its target of 23% new and renewable energy by 2025, as stated by the Directorate General of New Renewable Energy.
- Reforming coal and transport fuel subsidies, and taxing them based on social costs, could generate IDR 166 trillion for Indonesia.
- To decarbonize its energy mix, Indonesia must remove deployment hurdles, including unattractive feed-in tariffs, land and infrastructure barriers, and support PT PLN's climate neutrality plans.
Cite the original document
- APA
- Sumarno,, L. T. C. S. B. (2022). Switching Fossil Fuel Subsidies in Indonesia to Support a Green Recovery. International Institute for Sustainable Development. https://www.iisd.org/publications/brief/switching-fossil-fuel-subsidies-indonesia-support-green-recovery
- Chicago
- Sumarno,, Lasse Toft Christensen,Anissa Suharsono,Theresia Betty. Switching Fossil Fuel Subsidies in Indonesia to Support a Green Recovery. International Institute for Sustainable Development, 2022. https://www.iisd.org/publications/brief/switching-fossil-fuel-subsidies-indonesia-support-green-recovery.
- Wikipedia
- {{cite report |last1=Sumarno, |first1=Lasse Toft Christensen,Anissa Suharsono,Theresia Betty |title=Switching Fossil Fuel Subsidies in Indonesia to Support a Green Recovery |publisher=International Institute for Sustainable Development |date=21 July 2022 |url=https://www.iisd.org/publications/brief/switching-fossil-fuel-subsidies-indonesia-support-green-recovery |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{sumarno2022switching, author = {Sumarno,, Lasse Toft Christensen,Anissa Suharsono,Theresia Betty}, title = {{Switching Fossil Fuel Subsidies in Indonesia to Support a Green Recovery}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = jul, url = {https://www.iisd.org/publications/brief/switching-fossil-fuel-subsidies-indonesia-support-green-recovery}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
Full text
Collected · Record updated