{"title":"Indonesiaʼs energy transition: Dependency, subsidies and renewables","authors":"Ryan Wong, Aninda Dewayanti","doi":"10.1002/app5.391","DOIUrl":null,"url":null,"abstract":"<p>Indonesiaʼs economy is highly dependent on the fossil fuel industry as evidenced in measures of non-taxable revenue, energy subsidy, energy mix and regulatory flexibility. To cut carbon emissions by 41% in 2030, the energy system needs to transition faster than anticipated through progressive reforms and investment. Policy makers understandably are fearful of the shocks and unrests resulted from fossil fuel subsidy reform. However, the fears were shown to be an over-reaction, especially if poorer households were supported. The state-owned enterprise, Perusahaan Listrik Negara, is the central player in the tug of war between the fossil fuel and renewable sectors. The government should signal unwavering support for international investment in the renewables, and update the regulation on rooftop solar that boosts return on investment for domestic households. International investors will need modelling of cost competitiveness of wind farms against coal-fired plants in more remote areas.</p>","PeriodicalId":45839,"journal":{"name":"Asia & the Pacific Policy Studies","volume":"11 2","pages":""},"PeriodicalIF":1.4000,"publicationDate":"2024-05-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/app5.391","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Asia & the Pacific Policy Studies","FirstCategoryId":"90","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/app5.391","RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"AREA STUDIES","Score":null,"Total":0}
引用次数: 0
Abstract
Indonesiaʼs economy is highly dependent on the fossil fuel industry as evidenced in measures of non-taxable revenue, energy subsidy, energy mix and regulatory flexibility. To cut carbon emissions by 41% in 2030, the energy system needs to transition faster than anticipated through progressive reforms and investment. Policy makers understandably are fearful of the shocks and unrests resulted from fossil fuel subsidy reform. However, the fears were shown to be an over-reaction, especially if poorer households were supported. The state-owned enterprise, Perusahaan Listrik Negara, is the central player in the tug of war between the fossil fuel and renewable sectors. The government should signal unwavering support for international investment in the renewables, and update the regulation on rooftop solar that boosts return on investment for domestic households. International investors will need modelling of cost competitiveness of wind farms against coal-fired plants in more remote areas.
印尼的经济高度依赖化石燃料行业,这一点在非税收收入、能源补贴、能源结构和监管灵活性等方面都有所体现。为了在 2030 年将碳排放量减少 41%,能源系统需要通过渐进式改革和投资以比预期更快的速度转型。决策者担心化石燃料补贴改革会带来冲击和动荡,这是可以理解的。然而,事实证明这种担心是过度反应,尤其是在贫困家庭得到支持的情况下。国有企业 Perusahaan Listrik Negara 是化石燃料与可再生能源行业角力的核心参与者。政府应坚定不移地支持可再生能源领域的国际投资,并更新提高国内家庭投资回报率的屋顶太阳能法规。国际投资者将需要建立风力发电场与较偏远地区燃煤发电厂的成本竞争力模型。
期刊介绍:
Asia & the Pacific Policy Studies is the flagship journal of the Crawford School of Public Policy at The Australian National University. It is a peer-reviewed journal that targets research in policy studies in Australia, Asia and the Pacific, across a discipline focus that includes economics, political science, governance, development and the environment. Specific themes of recent interest include health and education, aid, migration, inequality, poverty reduction, energy, climate and the environment, food policy, public administration, the role of the private sector in public policy, trade, foreign policy, natural resource management and development policy. Papers on a range of topics that speak to various disciplines, the region and policy makers are encouraged. The goal of the journal is to break down barriers across disciplines, and generate policy impact. Submissions will be reviewed on the basis of content, policy relevance and readability.