ACHIEVING A FOSSIL-FREE RECOVERY IN INDONESIA

The document analyzes Indonesia's National Economic Recovery (PEN) program, finding that 2020 spending heavily favored fossil fuel-related state-owned enterprises and subsidies over clean energy. It highlights a gap in renewable energy targets—reaching only 11.2% in 2020 against a 13.4% target—and recommends reforming fossil fuel subsidies and implementing conditional fiscal support to accelerate the energy transition.

• In 2020, Indonesia's COVID-19 recovery spending significantly favored the fossil fuel sector, with IDR 95.3 trillion (USD 6.6 billion) allocated to state-owned enterprises (SOEs) associated with fossil fuels, including PT PLN, PT Pertamina, PT Garuda Indonesia, and PT Kereta Api Indonesia.
• Combined COVID-19 recovery support and annual fossil fuel subsidies in 2020 totaled IDR 205.8 trillion (USD 14.3 billion), representing 8% of Indonesia's total budget and more than doubling existing fossil fuel subsidies.
• The document identifies several barriers to renewable energy development in Indonesia, specifically fossil fuel subsidies that keep electricity prices artificially low, making renewables less cost-competitive.
• Indonesia's power and utility sector strategy for net-zero emissions includes an optimistic scenario that could require an additional IDR 40 trillion (USD 2.7 billion) to phase out coal-fired power plants early.
• The authors recommend that any future fiscal support to the fossil fuel sector be conditional on the company transitioning to clean energy alternatives and that fossil fuel subsidies be reallocated to renewable energy.

APA

Sumarno, T. B., & Sanchez, L. (2021). ACHIEVING A FOSSIL-FREE RECOVERY IN INDONESIA. International Institute for Sustainable Development. https://www.iisd.org/system/files/2021-10/indonesia-achieve-covid-19-recovery-climate-targets.pdf

Chicago

Sumarno, Theresia Betty, and Lourdes Sanchez. ACHIEVING A FOSSIL-FREE RECOVERY IN INDONESIA. International Institute for Sustainable Development, 2021. https://www.iisd.org/system/files/2021-10/indonesia-achieve-covid-19-recovery-climate-targets.pdf.

Wikipedia

{{cite report |last1=Sumarno |first1=Theresia Betty |last2=Sanchez |first2=Lourdes |title=ACHIEVING A FOSSIL-FREE RECOVERY IN INDONESIA |publisher=International Institute for Sustainable Development |date=September 2021 |url=https://www.iisd.org/system/files/2021-10/indonesia-achieve-covid-19-recovery-climate-targets.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sumarno2021achieving, author = {Sumarno, Theresia Betty and Sanchez, Lourdes}, title = {{ACHIEVING A FOSSIL-FREE RECOVERY IN INDONESIA}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = sep, url = {https://www.iisd.org/system/files/2021-10/indonesia-achieve-covid-19-recovery-climate-targets.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }