Moving towards a more sustainable model of energy production & consumption: a case for Indonesia

Abstract

This thesis provides an assessment of Indonesia’s energy infrastructure following the decarbonization objectives set forth by the government at the G20 conference in Bali in 2022. Its goal is to compare the current models of production to local development objectives, and assess the state of key renewable energy sectors through the lenses of policy, technology, economic development, social stability and environmental conservation. It starts by providing historical context regarding the development of Indonesia as a country, looking at the influence of different civilizations over the land that is known today as Ibu Pertiwi. This assessment finds that the political and cultural spectrum of the country is highly diversified, and that democracy is still in the process of being fully established. The second part assesses the current policy environment and offers various tools to complement it. It finds that existing policy does not currently support the growing renewable energy industry. Solutions proposed include financial support for the national energy utility, an increase in the existing carbon tax, a phase out of fossil fuel subsidies, enhanced development of the private energy sector, and the application of energy standards. The third and final part reviews the growth of three key renewable energy markets: geothermal, solar and wind energy. It finds that, while resources are abundant, none of these markets have yet reached the pace of development expected by the government, mostly due to a lack of encompassing regulation, existing infrastructure and funding.