Switching Fossil Fuel Subsidies in Indonesia to Support a Green Recovery

This briefing by the International Institute for Sustainable Development analyzes how Indonesia can redirect fossil fuel subsidies toward renewable energy to meet its climate targets and align with its 2022 G20 Presidency priorities.

• Indonesia can secure necessary renewable energy investments by redirecting harmful fossil fuel subsidies toward clean energy. The Directorate General of New Renewable Energy estimates that approximately IDR 500 trillion in investment is required to reach the country's goal of 23% new and renewable energy by 2025.
• Reforming coal and transport fuel subsidies, and taxing them based on their actual societal costs, could potentially raise IDR 166 trillion for Indonesia.
• To accelerate the green energy transition, Indonesia must remove deployment hurdles, including unattractive renewable energy feed-in tariffs and land and infrastructure barriers. Additionally, the country should support the climate neutrality plans of the state-controlled electricity firm PT PLN, improve energy efficiency, and ensure affordable energy access.

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} }