In Indonesia, regulatory gaps are holding back renewables

(China Dialogue, 24 Nov 2022) An international partnership to speed up the energy transition has been announced. Strong domestic regulations to support renewables are urgently needed.

Indonesia currently produces 71% of its energy from fossil fuels. The need and expectation for the energy mix to instead be dominated by renewables are continuing to rise, sharpened by the negative impacts of fossil fuels which can no longer be denied.

On 15 November, at the G20 summit in Bali, Indonesia co-launched the Just Energy Transition Partnership, which will help the country shut coal power plants and expand renewables.

But domestically the energy transition is being held back by a lack of firm regulation favouring renewables. In fact, recent regulations, including the Job Creation ‘Omnibus’ Law and the Mining Law Amendment, focus on providing support to fossil energy, especially coal.

This is the primary obstacle to a just energy transition in Indonesia.

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China Dialogue, 24 Nov 2022: In Indonesia, regulatory gaps are holding back renewables