Energy Policy in Indonesia: A Comprehensive Review of Energy Policy in Indonesia for a Low-Carbon Future
Keywords:
Energy Transition, Renewable Energy Policy, Low-Carbon Development, Indonesian Energy Policy, Stakeholder Engagement, Low carbon policyAbstract
Energy policy in Indonesia is becoming increasingly central to the country’s efforts to pursue low-carbon development, economic resilience, and long-term sustainability. As global and domestic pressures intensify, energy policy in Indonesia must respond to rising energy demand, shifting technology costs, and the urgent need to reduce emissions while maintaining affordability and security. This study provides an integrated analysis of how energy policy in Indonesia shapes the national energy transition, focusing on regulatory structures, institutional dynamics, and the interaction among key stakeholders across multiple governance levels. Despite notable progress, energy policy in Indonesia continues to face persistent challenges, including fossil-fuel subsidy dependence, uneven regional implementation, and limited financial support for renewable energy development. These constraints reflect structural gaps in how energy policy in Indonesia balances economic growth with environmental commitments. The analysis highlights solar, biomass, geothermal, and emerging technologies as major opportunities that can be unlocked through stronger and more coherent energy policy in Indonesia. By examining the political economy underpinning current regulations, this paper demonstrates that energy policy in Indonesia must evolve toward transparent incentive frameworks, streamlined permitting, and more predictable investment environments. The success of energy policy in Indonesia also depends on empowering local governments, improving institutional coordination, and ensuring that marginalized communities benefit from the transition. Furthermore, this study shows that distributed energy solutions can advance social equity when supported by inclusive and community-oriented energy policy in Indonesia. Ultimately, the findings illustrate that achieving national climate targets requires aligning energy policy in Indonesia with long-term planning documents, strengthening cross-sectoral coherence, and accelerating renewable energy deployment. Energy efficiency, carbon pricing, technology innovation, and capacity building must be embedded directly into future energy policy in Indonesia. By addressing governance, financing, and technological barriers, energy policy in Indonesia can play a transformative role in guiding the country toward a just, resilient, and sustainable energy future. The insights presented here offer a comprehensive foundation for scholars, policymakers, and practitioners seeking to understand and improve the direction of energy policy in Indonesia.
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Copyright (c) 2025 Ibham Veza, Raditya Yudha Wiranegara, Ihwan Ghazali, Andy Tirta
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