Search

Objective - This empirical paper aims to describe what action the Government of Indonesia is taking to provide alternative energy sources, such as solar cells, biomass, wind energy, ocean energy, and other renewable energy (RE) sources. Methodology/Technique - The method of analysis used in this study consists of an individual factor, a contextual factor, an external factor, an organizational factor, and a political factor. Findings - The results show that the role of street level bureaucrats in implementing RE policy in Indonesia is influenced by legal regulation and specific values in internal organizations, created by themselves. Novelty - The study highlights that street-level bureaucrats in Dirjen-EBTKE have a discretion when introducing and implementing new RE programs. The paper involves qualitative research by providing descriptive data through a case study. [ABSTRACT FROM AUTHOR]

Energy insecurity has become an alarming issue among ASEAN countries. One proposal to overcome this energy insecurity is to integrate energy markets among ASEAN countries. In order to do this integration, a major energy policy reform, particularly the elimination of energy subsidy policies, is needed. The main goal of this paper, hence, is to analyze the impact of an energy subsidy reduction policy in ASEAN, particularly in terms of economic growth, environmental improvement and welfare distribution. To achieve this goal, this paper uses a multi-country computable general equilibrium (CGE) for Inter-Regional System Analysis for ASEAN (IRSA-ASEAN) to conduct the analysis. This paper finds that countries in which energy subsidies significantly exist, i.e., Indonesia and Malaysia, stand to gain much from eliminating these subsidies. Gross domestic product (GDP) is likely to increase, with the added benefit of reduced CO2 emissions. In terms of welfare distribution, this policy appears to be progressive in nature. [ABSTRACT FROM AUTHOR]

Foresight of geothermal energy installation is valuable for energy decision-makers, allowing them to readily identify new capacity units, improve existing energy policies and plans, expand future infrastructure, and fulfill consumer load needs. Therefore, in this paper, an improved grey prediction model (IGM (1,1)) was applied to perform the annual geothermal energy installation capacity prediction for the top 10 countries based on installed power generation capacity evaluated at the end of 2021, namely the United States, Indonesia, Philippines, Turkey, New Zealand, Mexico, Italy, Kenya, Iceland, and Japan, for the next nine years for the period from 2022 through 2030. These data can be used by future researchers in the field. Separately, datasets from 2000 to 2021 were collected for each country's geothermal energy installation capacity to build a model which can accurately predict the annually geothermal energy installation capacity by 2030. The IGM (1,1) model used a small dataset of 22 data points, with one point denoting one year (i.e., 22 years), to predict the capacity of geothermal energy installations for the next nine years. Following that, the model was implemented for each dataset in MATLAB, where appropriate, and the model accuracy was evaluated. Ten separate geothermal energy installation capacity datasets were used to validate the improved model, and these datasets further demonstrated the overall improved model's accuracy. The results prove that the prediction accuracy of the IGM (1,1) model outperforms the benchmark conventional GM (1,1) model, thereby enhancing the overall accuracy of the GM (1,1) model. The IGM (1,1) model ensures error reduction, suggesting that it is an effective and promising tool for accurate short-term prediction. The results reveal the 2030 geothermal energy installation capacity rankings. [ABSTRACT FROM AUTHOR]

Lack of effective policies hinder the uptake of Utility-scale solar PV, even though they are projected to play a pivotal role in achieving Indonesia's 2050 net-zero energy target. This study seeks to identify a cost-effective pathway to increase the capacity of utility-scale solar PV in Indonesia through supportive policies that ensure equitable cost distribution between the government and industry. A novel Market Penetration Optimization Model is developed and applied in simulationmode to assess existing policies, and optimizationmode to determine new policy recommendations and compare three policy induced diffusion pathways. Results show that current price-based policies are insufficient to stimulate growth in the solar PV market, only covering ~13% of the investment cost required by the industry. Thus, necessitating a reactivation of Feed-in-Tariffs. The optimal tariffs rates required range from 0.39 to 1.47 cents/kWh for the most economic pathway during the initial 10-year post-construction period. The Innovation Diffusion Theory-based pathway necessitates the lowest initial investment cost while yielding the highest revenue from electricity sales, demonstrating its superior cost-effectiveness compared to both the supply- based and linear pathways. This study enriches the literature by exploring the financial implications of policy induced diffusion pathways. [ABSTRACT FROM AUTHOR]

This paper analyses the effects on the regions of Indonesia's fuel policy. It discusses how the sharing of oil and gas revenue and taxes between the centre and the regions affects the sub-national fiscal position, and examines the distribution of fuel subsidies across regions. The paper also examines the recent proposals to discontinue subsidising gasoline for private vehicles or to eliminate fuel subsidies altogether, and shows how the regions would be affected if these suggestions were adopted. We argue that the proposals would increase efficiency and equity and should therefore be implemented. [ABSTRACT FROM AUTHOR]

The study described in this paper uses direct evidence from processes applied for the developing economy of Indonesia, as it defines the trajectory for its future energy policy and energy research agenda. The paper addresses the research gap to make explicit the process undertaken by key stakeholders in assessing and determining the suitability, feasibility, and dynamics of the renewable energy sector. Barriers and enablers that are key in selecting the most suitable renewable energy sources for developing economies for the renewable energy development have been identified from extensive analyses of research documents alongside qualitative data from the Focus Group Discussions (FGD). The selected FGD participants encompass the collective views that cut across the political, economic, social, technological, legal, and environmental aspects of renewable energy development in Indonesia. The information gained from the FGD gives insights into the outlook and challenges that are central to energy transition within the country, alongside the perceptions of renewable energy development from the influential stakeholders contributing to the process. It is notable that the biggest barriers to transition are centred on planning and implementation aspects, as it is also evident that many in the community do not adhere to the same vision. [ABSTRACT FROM AUTHOR]

Indonesia is committed to achieving Net Zero Emission (NZE) conditions by the year 2060, with policy adjustments and constraints being necessary to realize this goal. The aim of this study is to achieve NZE conditions using a least-cost optimization method for various power plants that rely on fossil and non-renewable energy sources, without specifying a target year. Two scenarios, Business as Usual (BAU) and NZE, were developed for comparison in the optimization analysis. Through the utilization of LEAP and NEMO software, the optimization results suggest that optimal NZE conditions in Indonesia could be attained by 2075, with solar-based electricity generation playing a crucial role in meeting basic electricity demands. The NZE scenario predicts a 28% rise in electricity demand by 2100 compared to the BAU scenario. In 2075, PV will contribute 32.8% (224.3 GW) to total power supply, while BESS will provide 198.8 GW according to the NZE scenario. This study aims to assist the Indonesian government and stakeholders in reaching the NZE goal, while maintaining current efforts to avoid new efficiency and financial challenges. Achieving this goal will involve using a cost-effective optimization approach and implementing energy-efficient technologies and conservation programs. [ABSTRACT FROM AUTHOR]

Justice and sustainability are the foundation of fair and equitable biofuel development. Policies and practices are consequently necessary to support a just transition towards a low-carbon economy. Therefore, this study aimed to understand multi-actor perspectives on policies and practices relevant to the just transition in biofuel development. Applying a socio-legal approach based on the JUST framework, this study focused on the Indonesian biofuel industry, which is primarily driven by crude palm oil (CPO) production. This study also added comparative perspectives from Thailand's biofuel industry. The primary data were gathered from in-depth interviews and focus group discussions (FGDs), while the secondary data were from research, policy, and other government archives. Based on the results, oil palm plantations in Indonesia and Thailand are crucial for macroeconomic development. However, smallholder farmers in Indonesia, especially independent ones that do not join farmer groups, remain marginalised by the current regulations. In fact, many benefits from biofuel practices and policies accumulate disproportionately towards large corporations, while marginalised groups bear the costs. The Indonesian Sustainable Palm Oil (ISPO) certification that should induce market accessibility and competitiveness has not fully reached most rural farmers. Furthermore, various overlapping regulations and perplexing data differences exist from multiple ministries and administrative levels. Thus, palm oil stakeholders in Indonesia demand a dedicated institution for integrated regulation and monitoring of the industry, similar to the National Palm Oil Policy Committee in Thailand. The myriad of legal, political, socio-economic, and justice issues thus necessitates all hands on deck to ensure a just transition for all stakeholders of the Indonesian biofuel industry. [ABSTRACT FROM AUTHOR]

Indonesia's population is still growing, and the demand for energy for transport to sustain community mobility grows yearly. On the other hand, environmental challenges and green energy policies have become critical issues in today's countries, including Indonesia, and are the key subjects in sustainable development. So far, Indonesian transportation has relied on fossil-fuel vehicles. The Indonesian government has devised different regulations to stimulate the usage of electric vehicles to support the three key programs in the National Medium-Term Development Plan For 2020-2024. This study will go through electric car policy issues, including the consequences of the policy's implementation in Indonesia. The literature review strategy is used in this study. The author thoroughly evaluated prior studies on electric vehicles in the literature. The research findings reveal that the electric car policy impacts direct and indirect expenses, but the government will have difficulty assessing the program's indirect advantages. As a result, the author suggests that the government take immediate steps to anticipate various negative impacts that may arise so that they do not become problems in the future and do not become barriers to achieving the goals of Indonesia's battery-based electric vehicle program. [ABSTRACT FROM AUTHOR]

Abstract: This paper presents a technical and economic potential of Solar Energy Application in Indonesia. Indonesia consists of thousands islands. Meanwhile, according to the latest data from the Department of Energy and Mineral Resources in 2012, Indonesia's electrification ratio is only around 74%. Renewable energy especially solar energy is one of the most potential energy sources as Indonesia lies in the equator line where the daylight is abundant and available throughout the year. The solar energy technologys is also eco-friendly and its application has the potential to reduce the greenhouse gas emission. A review of solar energy potential in Indonesia based on the solar resource data is presented. Estimation of solar resource in Indonesia was done using solar radiation data from NASA Surface Meteorology and Solar Energy (SSE). Retscreen software was used for all of the calculation in the study. It is found that the proposed system can generate electricity annually vary from 0.46 GWh/year in Denpasar to 217 GWh/year in Pontianak. This paper also calculates the economic viability through pre-tax IRR and simple payback indicator. It was observed that the highest IRR was observed in Makassar and the lowest IRR was observed in Banjarmasin. Meanwhile, it can be observed that Makassar got the shortest payback period for 11 years and Banjarmasin got the longest payback period of 17.6 years. From the side of environmental impact, the proposed system can reduce the GHG emission up to 243252 tons per year in particular selected location. [Copyright &y& Elsevier]

Abstract: This paper briefly presents the experience of the Center for Regional Energy Management in the needs assessment, capacity building and adoption of household biogas plants in rural areas of Yogyakarta over the past five years. The biogas program has been designed to solve specific energy provision problems in rural areas, such as securing cooking fuel, as well as to promote ecological farming by using biogas digester as organic manure, thereby efficiently recycling locally available biomass waste. The paper also points that realizing these goals would require significant changes in funding and policy support for the successful implementations of biogas in developing countries. In addition, it highlights some of the key issues related to the implementation of rural energy programs and suggests a new approach and future strategies for initiatives that endeavor to address the issue of rural poverty and improve the living conditions of rural people. [Copyright &y& Elsevier]

Energy policy-makers in Indonesia are interested in the causal relationship between energy consumption, CO emissions, and economic growth. Therefore, this paper attempts to analyze the short- and long-run causality issues between energy consumption, CO emissions, and economic growth in Indonesia using time-series techniques. To this end, annual data covering the period 1965-2006 are employed and tests for unit roots, co-integration, and Granger-causality based on an error-correction model are applied. The results show that there is a bi-directional causality between energy consumption and CO emissions. This means that an increase in energy consumption directly affects CO emissions and that CO emissions also stimulate further energy consumption. In addition, the results support the occurrence of uni-directional causality running from economic growth to energy consumption and to CO emissions without any feedback effects. Thus, energy conservation and/or CO emissions reduction policies can be initiated without the consequent destructive economic side effects. [ABSTRACT FROM AUTHOR]

This article examines biofuel development in Indonesia initiated by the government through a presidential instruction issued in January 2006. Three layers of analysis are presented. One is related to the politics of oil during the Suharto era that shaped Indonesian energy policy for decades. The second layer looks at current political and economic situations in Indonesia, which has been much affected by a crisis of energy resulting from previous regimes. A biofuel initiative thus got underway to solve three major problems, namely, the energy crisis, high unemployment, and poverty. Finally, this paper observes how the biofuel policy impacts people in a village in West Java. [ABSTRACT FROM AUTHOR]

The effectiveness of carbon taxes has been subject to important debates on the sustainable development pathway. As an archipelagic country that is vulnerable to climate change, the impact of implementing this policy instrument is still understudied in the literature. This study examines the effect of carbon tax and recycling scenarios on the Indonesian economy by employing a dynamic computable general equilibrium (CGE). The result revealed that carbon tax revenue recycling combined with household transfer and investment yielded better GDP and employment rate than a household transfer only in the medium and long terms. Furthermore, the carbon tax revenue recycling on household transfer and renewable energy investment created energy intensity reductions. This study recommends implementing the tax by prioritizing specific sectors, setting appropriate tax levels, applying a transitional policy, and diversifying the investment strategy to align with the sustainable development pathway. [ABSTRACT FROM AUTHOR]

Indonesia has been facing dramatic changes in natural gas industry development, which contributes to economic prosperity and reduces reliance on petroleum fuels. This paper reviews the current state of the natural gas industry in Indonesia, including reserves, supply and demand, infrastructure, pricing and regulation; discusses the outlook and path forward for the country's gas sector; and identifies the barriers to and regulatory remedies for further development. The government has struggled to balance domestic demand with exports with respect to the country's natural resource management and to respond to sensitive issues involving changes in oil and gas law that aim to prioritize gas for domestic usage. Meanwhile, the speed of gas infrastructure development has been slow and gas production is declining due to aging gas fields without significant new gas production. The projection results show that the domestic gas demand will increase significantly, with gas demand in 2025 being approximately double to triple that in 2013. To fulfill that demand, Indonesia needs to attract substantive investment for future gas infrastructure and upstream gas exploration and exploitation of new gas fields. Systematic support and clear policy guidelines, legal clarity and certainty, good bureaucratic performance, and effective domestic gas pricing mechanisms are necessary to assure the successful expansion of gas utilization in the country, achieve a cleaner energy mix portfolio and assist in moving away from oil subsidies. [ABSTRACT FROM AUTHOR]

As energy consumption increases, adopting an energy transition policy has significantly intensified. The existing literature mainly argues that energy transition's success entails 'energy democracy', which integrates social justice and economic equity with renewable transitions. Even though energy democracy has its merit in ensuring the energy transition, it ignores state capacity, especially in emerging economies where the state actors play a vital role in managing resources. By bringing state capacity into the discussion, this article offers a more comprehensive theoretical and empirical contribution to the current debate on energy transition in emerging economies like Indonesia. A country characterized by fragmented actors and competing interests in every arena of policies and level of governance. Therefore, in emerging economies, energy transition requires a 'socio-technical capacity' and 'community engagement'—as proposed by energy-democracy theory—and the rigorous state's capacity to make the transitions possible. [ABSTRACT FROM AUTHOR]

Access to modern energy among Association of Southeast Asian Nations (ASEAN) member countries has not been evenly distributed and some member countries are still in a status of energy poverty. Therefore, ASEAN has initiated the integration of energy markets. Indonesia is one of the ASEAN countries that still needs to overcome the problem of inequality in access to energy, especially in remote, isolated, underdeveloped, rural and border areas. ASEAN Energy Market Integration (AEMI) is based on the logic that integration of energy markets would allow national governments to address energy policy challenges more effectively and efficiently than they are able to do on their own; it therefore emphasizes interconnectivity through trade and energy investment. This study analyzed the linkage between the points of agreement in AEMI and the implementation of Indonesian policies in the context of harmonization of regulations, development of energy infrastructure, and subsidy policies. Using qualitative research methods, this study sought to rationalize whether the linkage between AEMI and Indonesian policies was convergent or divergent. This study concluded that there was a convergence between the AEMI agreement and the implementation of policies in Indonesia to address energy poverty. [ABSTRACT FROM AUTHOR]

Indonesia ranks fourth as the most populous nation after China, India, and the USA and is one of Southeast Asia's most significant energy users. Due to the rapidly increasing energy consumption and depleted fossil fuel production, Indonesia has become a net importer of oil since 2004. To mitigate the challenge, a policy concerning the utilization of biodiesel as a fossil fuel substitute was firstly launched in 2006. Starting from 2020, the Government of Indonesia issued the mandatory program of biodiesel called B30, making Indonesia hit the record as the highest implementer of biodiesel in the world. However, an in-depth study of the current status of Indonesia's palm biodiesel has not been reported well. Therefore, this study aims to comprehensively review the current situation and challenges of biodiesel implementation in Indonesia. Here, Indonesia's energy policy and the current status of Indonesia's palm biodiesel, including the potential of biodiesel resources and techno-economic and socio-political aspects, are comprehensively discussed. Based on the analyses, biodiesel mandatory policy has a significant impact on economic and social aspects. It is projected that the program will increase the labor to 10,182 workers in biodiesel industries and save the foreign exchange at around US$4.46 billion by 2030. Finally, several main challenges faced along with several plausible mitigations to overcome the problems in implementing palm oil biodiesel production are also highlighted. Highlights : Indonesian palm biodiesel program contributes to increasing the NRE portion Biodiesel program has a significant impact on economic and social aspects The program is projected able to increase the labor to 10,182 workers by 2030 The program can save the foreign exchange at around US$4.46 billion by 2030 Sustainable biodiesel must consider diversification of biodiesel feedstock [ABSTRACT FROM AUTHOR]

Abstract: India and Indonesia are privileged with abundant biomass resource potentials, 23 Giga-watt (GW) and 50GW equivalents respectively, yet both countries harvest small proportions, with fundamentally different deployed policies and articulated strategies. In this regard, this paper focuses on analyzing evolution and deployment of different policies and execution of strategies by two countries. It analyzes the effects of the biomass energy policies and executed strategies in India and Indonesia with a holistic approach. Such an approach takes the policy and strategy of the whole biomass energy sector rather than a segmented and separated sector as biofuel, biogas, biodiesel, etc. Furthermore, how they have resulted in different outcomes is also addressed. Our analysis shows that India's biomass energy policy has evolved from incremental to more radical changes, while Indonesia's policy remains incremental. India has also a relatively more unified biomass energy strategy than Indonesia. India has been more focused on technology development and deployment along with strong institutional creation, whereas Indonesia has not been able to create any biomass sector supporting strong institutions. Therefore, in terms of biomass energy utilizations, India has demonstrated better performance than Indonesia. [Copyright &y& Elsevier]

Abstract: Petro diplomacy has played its role in last few decades and that makes energy security a major concern worldwide. Rapid climate change and environmental protection is another vital issue to be addressed in recent energy policies. So an alternative carbon neutral transport fuel is a must in new sustainable energy mix. Biodiesel has immense potentiality to be a part of a sustainable energy mix. In this energy scenario, Brazil''s success is a role model in utilizing its agro-industry for reducing poverty, greenhouse gas emission and petro-dependency simultaneously. Brazil commercialized bioethanol in mass scale by introducing flexible fuel vehicles in market. This dedicated engine idea moralizes a new concept of dedicated biodiesel engine vehicles for Malaysia and Indonesia. Southeast Asian countries, i.e. Malaysia and Indonesia is the largest producer as well as exporter of palm oil. Growing at highest yield rate among other biodiesel feedstock, palm based biodiesel is a top exported product for this region. This paper will quantify the prospects of a dedicated biodiesel engine vehicle for Malaysia and Indonesia that will initiate palm based biodiesel in fuel supply chain by leapfrogging the barriers of biodiesel utilization by boosting local automobile industry simultaneously. This article will also review on energy scenario of Malaysia and Indonesia and their renewable energy policies and challenges for coming decades. [Copyright &y& Elsevier]

Abundant potential of renewable energy (RE) in Indonesia is predicted to replace conventional energy which continues to experience depletion year by year. However, until now, the use of RE has only reached 2% of the existing potential of 441.7 GW. The main overview of this work is to investigate the availability of RE that can be utilized for electricity generation in Indonesia. National energy demand and targets in the long run during the 2017–2050 period are also discussed. Besides, government policies in supporting RE development are considered in this work. The results show that the potential of RE in Indonesia can be utilized and might replace conventional energy for decades. The use of RE for electricity generation can be achieved by employing a government policy that supports the investor as the executor of RE development. The selling price of electricity generated from RE is cheaper than electricity generated from fossils; this makes economy is more affordable for people. Finally, the target set by the government for utilizing RE as the main energy in Indonesia can be done by implementing several policies for the RE development. Thus, greenhouse gas emissions and the use of petroleum fuels can be reduced. [ABSTRACT FROM AUTHOR]

Energy is a key enabling factor within the Sustainable Development Goals (SDGs), which include eradicating poverty and hunger, improving human well-being, and protecting the environment. Countries intending to incorporate SDGs in their development programs should expect an increase in energy consumption, and therefore, need to review their energy planning. The objective of this paper is to anticipate the additional energy requirements of Indonesia with the implementation of SDGs compared to business as usual (BAU) and current policy (CP) scenarios. Assuming all SDG targets were to be implemented in the Indonesian national development plan, the additional energy demand for each target by 2030 was calculated. It was found that 18 out of 169 SDGs targets required additional energy in the Indonesian context. Overall, more energy will be needed to achieve those 18 SDGs targets compared to the BAU scenario. Fortunately, the full realisation of the current energy policies will cover the additional energy required under the SDGs scenario. • Energy demand in Indonesia under the SDGs will increase by 5% of the BAU in 2030. • Under the national energy plan, the energy demand will be 19% higher than the BAU. • The national energy plan has anticipated energy demand under the SDGs scenario. • The current energy policy scenario calls for a dramatic increase in electricity use. [ABSTRACT FROM AUTHOR]

Copyright of Problems of Sustainable Development / Problemy Ekorozwoju is the property of Faculty of Environmental Engineering and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Abstract: Asia’s largest biofuels producers are currently Indonesia, Malaysia, the Philippines, Thailand, China and India. This paper first examines the current status of biofuels in these countries, including the national development targets, strategies, incentives and policies. It then identifies the fundamental driving forces behind the development and promotion of these industries and considers their economic, social and environmental impacts. [Copyright &y& Elsevier]

This article discusses Indonesia's plan to build nuclear power plants in order for it to meet the rapidly rising demand for more energy. The article notes that an anti-nuclear alliance has formed from grassroots organizations motivated by distrust of the government's ability to manage such high-risk technology. The article examines Indonesia's nuclear power program and the groups opposed to it. A protest of plans to build four nuclear power plants on the north central coast of Java is described. The article presents highlights of the energy crisis that has led to the resurrection of the nuclear power plan.

The article presents a retrospective summary of events related to energy policies and technology, emission policy and climatic change. The United Nations held a meeting on climate change in Bali, Indonesia wherein 187 countries agreed on how to reduce greenhouse gas emissions deeply by 2012. The China and India together account for about 70%of the increase in oil consumption over last 2 years. According to Morgan Stanley the world market for clean energy could reach $500 billion by 2020 and $1 trillion by 2030.