Making Energy Transition Work in Indonesia: Bridging The Gap between Policy and Practice

Despite developing policies and frameworks, having abundant renewable energy resources and increasing energy demand, Indonesia and ASEAN require significant additional financing to support the renewable energy transition to achieve its target of 23% share in the total energy mix. [...] One of the keys to increase financing and investment in the transition is to attract private sector involvement through profitable mechanisms and increasing business valuation of the renewable energy market. [...] In the case of Indonesia, the main challenges of financing and investment lie in the mis-alignment between government's policies, regulations, and frameworks with the concerns of the business sector. [...] FINANCING AND INVESTMENT CHALLENGES ARE THE TIP OF THE ICEBERG Indonesia’s Government Regulation (PP) NO.79 year 2014 obligates the 23% renewable energy share of total domestic energy, and is supported with the Presidential Regulation No.112 year 2022 and Kebijakan Energi Nasional as the framework. [...] From government we heard from representatives of PLN, the Governor of Bali, the Ministry of Energy and Mineral Resources, and the Coordinating Ministry for Maritime and Investment.