Risalah Kebijakan Energi Indonesia

The document assesses Indonesia's energy landscape in 2020-2021, highlighting a trend where the government continues to support fossil fuels, particularly coal, despite global shifts toward green recovery. It details the decline in fuel and LPG subsidies due to the pandemic, the promotion of coal derivatives like dimethyl ether (DME) to reduce LPG imports, and the regulatory and financial hurdles facing renewable energy projects.

• Indonesia's GDP contracted by 2.07% in 2020 due to the COVID-19 crisis, with the government projecting a recovery growth of 4.5%-5.5% for 2021 and a budget deficit of approximately 5.7% of GDP for 2020.
• Fuel and LPG subsidies decreased significantly in 2020 due to lower international prices and reduced domestic consumption. Transport fuel subsidies fell 41% from Rp30.06 trillion in 2019 to Rp17.70 trillion in 2020, while LPG subsidies dropped 56% from Rp54.15 trillion to Rp23.50 trillion.
• The Indonesian government is prioritizing the development of coal derivatives, such as dimethyl ether (DME), to substitute imported LPG. This effort includes fiscal and non-fiscal incentives, such as 0% royalties for producers expanding into derivative industries and mining business licenses that are no longer limited to 20 years.
• Despite global trends toward green recovery, Indonesia's energy transition is hindered by a continued reliance on coal. PLN's 2019-2028 plan shows coal power still dominates at 48% of the mix, and recent revisions to the RUPTL are expected to increase the proportion of coal in long-term development plans.
• Renewable energy deployment faces significant regulatory and financial obstacles. Of 75 renewable energy power purchase agreements (PJBTL) signed between 2017 and 2018, 36% have not reached financial closing and nearly 7% were cancelled.
• Floating solar PV projects are emerging as a key driver for renewables by overcoming land acquisition barriers, with some projects achieving record-low bid prices of US$3.68 cents/kWh.

APA

Suharsono, A., Lontoh, L., & Maulidia, M. (2021). Risalah Kebijakan Energi Indonesia. International Institute for Sustainable Development. https://www.iisd.org/system/files/2021-08/indonesia-energy-policy-briefing-february-2021-bahasa.pdf

Chicago

Suharsono, Anissa, Lucky Lontoh, and Martha Maulidia. Risalah Kebijakan Energi Indonesia. International Institute for Sustainable Development, 2021. https://www.iisd.org/system/files/2021-08/indonesia-energy-policy-briefing-february-2021-bahasa.pdf.

Wikipedia

{{cite report |last1=Suharsono |first1=Anissa |last2=Lontoh |first2=Lucky |last3=Maulidia |first3=Martha |title=Risalah Kebijakan Energi Indonesia |publisher=International Institute for Sustainable Development |date=February 2021 |url=https://www.iisd.org/system/files/2021-08/indonesia-energy-policy-briefing-february-2021-bahasa.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{suharsono2021risalah, author = {Suharsono, Anissa and Lontoh, Lucky and Maulidia, Martha}, title = {{Risalah Kebijakan Energi Indonesia}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = feb, url = {https://www.iisd.org/system/files/2021-08/indonesia-energy-policy-briefing-february-2021-bahasa.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }