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The document examines Indonesia's energy landscape between 2015 and 2020, highlighting the financial strain on state-owned enterprises PT Pertamina and PT PLN due to fuel subsidies and the COVID-19 pandemic. It details the impact of the pandemic on coal exports and electricity demand, while discussing regulatory shifts in renewable energy and the government's efforts to reform LPG subsidies. The briefing also notes contradictions between the goal of retiring fossil fuel plants and new regulations that incentivize the coal industry.

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  • The COVID-19 pandemic caused a severe decline in the coal sector, with exports falling by more than 40% in the first two months of 2020 compared to the previous year.
  • Indonesia's fuel subsidies for transport have trended upwards since the 2018 election period, and PT Pertamina has faced significant losses from selling government-priced subsidized fuel, including a reported loss of Rp12 trillion in September 2017.
  • LPG subsidies have increased significantly, rising from Rp25.87 trillion in 2015 to Rp58.14 trillion in 2018, driven by higher international prices and demand.
  • The government plans to retire approximately 13 GW of fossil fuel power plant capacity—including diesel plants over 15 years old and coal/gas plants over 20 years old—to be replaced by renewable energy to meet a 23% national energy mix target by 2025.
  • Ministerial Regulation No. 7/2020, which simplifies bureaucracy and licensing for mining, is viewed by NGOs as contradicting Indonesia's commitment to reduce carbon emissions by 29% by 2030.
  • PT PLN's financial condition has worsened due to the pandemic, leading to a need for contract renegotiations with independent power producers (IPPs) and the implementation of free electricity for certain household, small business, and small industrial customers.
  • Renewable energy investment has declined, with only US$1.5 billion of a US$1.8 billion target achieved in 2019; however, Ministerial Regulation No. 4/2020 introduced the Build Own Operate Transfer (BOOT) scheme to improve bankability.
  • The Indonesian government provided fiscal incentives for the coal mining sector to mitigate COVID-19 impacts, including a 30% income tax reduction and import tax exemptions for six months.

Cite the original document

APA
Suharsono, A., & Lontoh, L. (2020). Risalah Kebijakan Energi Indonesia. International Institute for Sustainable Development. https://www.iisd.org/system/files/2020-09/indonesia-energy-policy-briefing-july-2020-bahasa.pdf
Chicago
Suharsono, Anissa, and Lucky Lontoh. Risalah Kebijakan Energi Indonesia. International Institute for Sustainable Development, 2020. https://www.iisd.org/system/files/2020-09/indonesia-energy-policy-briefing-july-2020-bahasa.pdf.
Wikipedia
{{cite report |last1=Suharsono |first1=Anissa |last2=Lontoh |first2=Lucky |title=Risalah Kebijakan Energi Indonesia |publisher=International Institute for Sustainable Development |date=July 2020 |url=https://www.iisd.org/system/files/2020-09/indonesia-energy-policy-briefing-july-2020-bahasa.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{suharsono2020risalah, author = {Suharsono, Anissa and Lontoh, Lucky}, title = {{Risalah Kebijakan Energi Indonesia}}, institution = {International Institute for Sustainable Development}, year = {2020}, month = jul, url = {https://www.iisd.org/system/files/2020-09/indonesia-energy-policy-briefing-july-2020-bahasa.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }

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