Bridging the Gap between Policy and Net-Zero Realization in Indonesia: An Outlook of Available Approaches

Abstract

Indonesia has been ambitious with its efforts to tackle climate change and achieve net zero carbon emission. This is reflected by the Nationally Determined Contribution (NDC) that has been defined by the Government and presented during the Copenhagen Accord, Paris Agreement, and Glasgow Climate Pact. In realization, Indonesia has also pledged to achieve net-zero carbon emission by 2060, especially in the energy sector. The Ministry of Energy and Mineral Resources (MEMR/KESDM) of Indonesia has published its plan to achieve said targets through diversification and intensification of new and renewable energy resources. New and renewable energy bill is also currently being discussed in Indonesia’s House of Representative (DPR-RI). However, the reality is that the country is facing several challenges in meeting its targets, and the plans and targets set by the government in the energy sector are not being achieved. In this paper, we analyze the factors that have hindered the implementation of Indonesia’s energy transition plan and suggest potential solutions for filling the gaps. To achieve the NDC, we suggest that Indonesia must identify new resources and intensify the use of existing resources. Additionally, the paper provides recommendations on energy market policy that can help to accelerate the transition to sustainable energy. This paper would provide a future outlook on Indonesia’s energy policy and energy market. by adopting new energy technologies, increasing investment in renewable energy, and developing policies that support the transition to a low-carbon economy. Our analysis highlights the importance of addressing the challenges faced by Indonesia’s energy sector and the need for a comprehensive strategy that takes into account the complex interplay of factors that affect the energy transition process.