Indonesia Energy Transition Outlook

INDONESIA ENERGYTRANSITION OUTLOOK ©IRENA2022 Unlessotherwisestated,materialinthispublicationmaybefreelyused,shared,copied,reproduced,printedand/orstored,providedthatappropriateacknowledgementisgivenofIRENAasthesourceandcopyrightholder.Materialinthispublicationthatisattributedtothirdpartiesmaybesubjecttoseparatetermsofuseandrestrictions,andappropriatepermissionsfromthesethirdpartiesmayneedtobesecuredbeforeanyuseofsuchmaterial. CITATION IRENA(2022),Indonesiaenergytransitionoutlook,InternationalRenewableEnergyAgency,AbuDhabi.ISBN:978-92-9260-476-9 ABOUTIRENA TheInternationalRenewableEnergyAgency(IRENA)isanintergovernmentalorganisationthatsupportscountriesintheirtransitiontoasustainableenergyfuture,andservesastheprincipalplatformforinternationalco-operation,acentreofexcellence,andarepositoryofpolicy,technology,resourceandfinancialknowledgeonrenewableenergy.IRENApromotesthewidespreadadoptionandsustainableuseofallformsofrenewableenergy,includingbioenergy,geothermal,hydropower,ocean,solarandwindenergy,inthepursuitofsustainabledevelopment,energyaccess,energysecurityandlow-carboneconomicgrowthandprosperity.www.irena.org ACKNOWLEDGEMENTS ThisreportwaspreparedbyIRENAinclosecollaborationwiththeMinistryofEnergyandMineralResourcesofIndonesia,DirectorateGeneralofNewRenewableEnergyandEnergyResources(DrDadanKusdiana,ChrisnawanAnditya,AndriahFebyMisna,TonySusandy,ElisHeviati,FitriYuliani,IraAyuthia,Nurcahyo,QatroRoIandhandSariMurdiyatii);theDirectorateGeneralofElectricity(SendaHurmuzanKanam,HusniSafruddin,Pramudya);PTPLN[Persero](EdwinNugrahaPutra,CitaDewi,MuhammadRizkiandHerianAtma);theNationalEnergyCouncil[DEN](Suharyati,JamaludinLastiko,NanangKristanto);theMinistryofTransport(DanaWirya);theMinistryofIndustry;andAsosiasiProdusenPupukIndonesia(APPI). IRENAisgratefulfortheexternalreviewsandfeedbackreceivedfromSeptiaBuntara,ZulfikarYurnaidi,MonikaMerdekawatiandNgocGiangVu(ASEANCentreforEnergy);ThomasSpencer(InternationalEnergyAgency),FabbyTumiwa(InstituteforEssentialServiceReform);PaulButarbutar(FIRESecretariat);RizkaSari(BritishEmbassyinJakarta);andTjutDevi,VegaswarastiKumalaandHarryGembira(GIZEnergyProgrammeIndonesia). IRENAwouldalsoliketothanktheGovernmentofDenmarkforitssupport,aswellasAmandaNgwenya,AndersKruse,AugustAxelZachariae,MortenEgestrand,RioPradana,SimonFloeeNielsenandVinusanJeyarajah. Chapters2,3and5ofthisreportwereauthoredbyBadariahYosiyana(IRENA)andDegerSaygin(consultant)undertheguidanceofGurbuzGonul(Director,IRENACountryEngagementandPartnerships),BinuParthan(Head,Regions)andPrasoonAgarwal(ex-IRENA).Chapter4wasauthoredbyAdamAdiwinata,ZainabOmoladeAjibade,SeánCollins,MaisarahAbdulKadir,RaulMiranda,WalterSanchezandNicholasWagnerundertheguidanceofDolfGielen(Director,IRENAInnovationandTechnologyCentre),RicardoGorini(SeniorProgrammeOfficer,RenewableEnergyRoadmaps)andEmanueleTaibi(ex-IRENA). Additionalvaluablecomments,suggestionsandsupportwereprovidedbyIRENAcolleaguesAhmedBadr,BishalParajuli,DialaHawila,ElizabethPress,EmanueleBianco,FrancisField,GondiaSokhnaSeck,HeribBlanco,MichaelRenner,MichaelTaylor,NazikElhassan,PaulKomor,RabiaFerroukhi,StephanieClarke,UteCollierandXavierCasals.Thefollowingcolleaguesalsoprovidedmethodologicalandanalyticalsupportforthereport:MariaVicenteGarcia,KrislyGuerra,GayathriPrakashandRodrigoLeme.TheeditorofthisreportwasJustinFrench-Brooks. DesignbyPhoenixDesignAid. DISCLAIMER Thispublicationandthematerialhereinareprovided“asis”.AllreasonableprecautionshavebeentakenbyIRENAtoverifythereliabilityofthematerialinthispublication.However,neitherIRENAnoranyofitsofficials,agents,dataorotherthird-partycontentprovidersprovidesawarrantyofanykind,eitherexpressedorimplied,andtheyacceptnoresponsibilityorliabilityforanyconsequenceofuseofthepublicationormaterialherein.TheinformationcontainedhereindoesnotnecessarilyrepresenttheviewsofallMembersofIRENA.ThementionofspecificcompaniesorcertainprojectsorproductsdoesnotimplythattheyareendorsedorrecommendedbyIRENAinpreferencetoothersofasimilarnaturethatarenotmentioned.ThedesignationsemployedandthepresentationofmaterialhereindonotimplytheexpressionofanyopiniononthepartofIRENAconcerningthelegalstatusofanyregion,country,territory,cityorareaorofitsauthorities,orconcerningthedelimitationoffrontiersorboundaries. INDONESIA ENERGYTRANSITION OUTLOOK FOREWORD Indonesiaiskeytotheglobalenergytransition.IthasthehighestenergyconsumptionamongtheMemberStatesoftheAssociationofSoutheastAsianNations(ASEAN),anditsenergyuseissettorisesignificantlyasitseconomyandpopulationgrowinthecomingdecades. Indonesiahassetoutnear-termtargetstoincreaserenewableenergytohelpmeetrisingdemand.Whatisneedednowisalonger-termview,asthecountryhasalsocommittedtoanambitiousclimatetargettoreachnetzeroemissionsby2060orsooner. Endowedwithamplegeothermalandhydropowerpotential,aswellasanabundanceofrenewableresourcesincludingsolar,wind,oceanandbioenergy,Indonesiaisuniquelypositionedtodevelopasustainableenergysystembasedonrenewableenergythatcansupportsocio-economicdevelopment,addressclimatechange,andachieveenergysec