Energy Support Measures in Indonesia by Energy Source Data and References Annex

The report inventories 130 support measures across six energy types in Indonesia: oil and gas, coal, electricity, renewable energy, biofuels, and electric vehicles (EVs). It details various mechanisms including direct financial transfers, tax exemptions, and price regulations. For the period FY 2021 to FY 2024, 27% of these measures were quantified using official government data, while 64% remained unquantified due to data limitations. The annex provides specific legislative references and nominal values in IDR and USD for each measure.

• The inventory identified 130 support measures for the Indonesian energy sector between FY 2021 and FY 2024, though only 27% of these were quantified due to data availability issues.
• The Indonesian government provides significant direct financial compensation to state-owned Pertamina to cover losses from selling retail fuels (solar, premium, kerosene, and 3-kg LPG) below market prices.
• A Domestic Market Obligation (DMO) for crude oil requires production-sharing contract signatories to supply up to 25% of output to domestic refineries at a discounted fee, currently 25% of the reference market price.
• Coal producers benefit from a preferential export tax rate; while some companies pay 1.5%, those under Coal Contract of Works (CCoWs) were exempted as of 2023.
• The government supports the electricity sector by compensating PT PLN for selling power below cost to vulnerable households (450 VA and 900 VA) and for not raising tariffs for non-subsidized customers.
• Renewable energy developers can access various tax incentives, including a 30% reduction in income tax for six years starting from commercial production for high-priority projects.
• The government utilizes Green Sukuk Bonds to fund renewable energy infrastructure, including 121 facilities such as solar and micro-hydro plants for rural electrification in off-grid areas.
• Biodiesel producers receive price support to bridge the gap between the market price of diesel fuel and biodiesel, funded by an export levy on crude palm oil managed by the BPDPKS.
• To accelerate EV adoption, the government provides several incentives, including a 0% luxury goods sales tax for battery-powered EVs and a VAT borne by the government for certain four-wheeled BEVs and buses.
• The government has implemented a 2-wheeler conversion program providing subsidies of IDR 7 million to IDR 10 million per unit to convert internal combustion motorcycles to electric, though it appears discontinued in 2025.

APA

Suharsono, A., Bridle, R., Wahida, A., & Maulidia, M. (2026). Energy Support Measures in Indonesia by Energy Source Data and References Annex. International Institute for Sustainable Development. https://www.iisd.org/system/files/2026-02/indonesia-energy-support-measures-annex.pdf

Chicago

Suharsono, Anissa, Richard Bridle, Arzalia Wahida, and Martha Maulidia. Energy Support Measures in Indonesia by Energy Source Data and References Annex. International Institute for Sustainable Development, 2026. https://www.iisd.org/system/files/2026-02/indonesia-energy-support-measures-annex.pdf.

Wikipedia

{{cite report |last1=Suharsono |first1=Anissa |last2=Bridle |first2=Richard |last3=Wahida |first3=Arzalia |last4=Maulidia |first4=Martha |title=Energy Support Measures in Indonesia by Energy Source Data and References Annex |publisher=International Institute for Sustainable Development |date=February 2026 |url=https://www.iisd.org/system/files/2026-02/indonesia-energy-support-measures-annex.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{suharsono2026energy, author = {Suharsono, Anissa and Bridle, Richard and Wahida, Arzalia and Maulidia, Martha}, title = {{Energy Support Measures in Indonesia by Energy Source Data and References Annex}}, institution = {International Institute for Sustainable Development}, year = {2026}, month = feb, url = {https://www.iisd.org/system/files/2026-02/indonesia-energy-support-measures-annex.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }