Work

Decarbonising the electricity sector in Indonesia: Contradictions in national policies

Year: 2025

Type: article

Abstract: National policies play a paramount role in shaping the energy transition landscape in a country. Indonesia has implemented numerous regulations to support the electricity sector’s decarbonisation. However, some policies, such as price caps for renewables, conflict with Indonesia’s ambition to reduce carbon dioxide emissions and to increase the proportion of renewables in the country’s electricity generation mix. This paper aims to shed light on Indonesia’s national policies, highlighting how policy contradictions might be slowing down the efforts to decarbonise the electricity sector. We have conducted a systematic literature review of 58 academic studies and 26 grey-literature studies. We have found that several national policies, such as coal domestic market obligations, renewable energy price caps, and local content regulations, might hinder the success of the low-carbon transition.

Source: Procedia CIRP

DOI: 10.1016/j.procir.2025.01.086

Authors: Gana Kusuma, Maria Sharmina, Alejandro Gallego-Schmid

Institution: University of Manchester

Language: English

Topic: Renewable energy and sustainable power systems

Subfield: Renewable Energy, Sustainability and the Environment

Field: Energy

Domain: Physical Sciences

SDGs: Climate action, Industry, innovation and infrastructure, Affordable and clean energy, Peace, justice, and strong institutions

Open Access status: diamond

Funder: Lembaga Pengelola Dana Pendidikan