Abstract
The development of renewable energy in Indonesia is still in a relatively fledgling state, yet it is forecast to increase. The Government of Indonesia has formulated and implemented several strategic programs, compiled under several binding frameworks, namely the National Energy Policy and the General Plan for National Energy. The government is committed internationally to reduce its greenhouse gas emissions as part of its Nationally Determined Contributions. However, unearthing the dynamics of renewable and sustainable energy in Indonesia requires a detailed stakeholder analysis of all relevant and major actors. This paper aims to provide a stakeholder analysis of actors in the renewable and sustainable energy sector in Indonesia as a whole, using a Political, Economic, Social, Technological, Legal and Environmental (PESTLE) analysis methodology. The results have indicated that existing policies are not yet perfect, given that the renewable energy industry is still quite minimal, especially in the current conditions of falling oil prices. In the future, it is hoped that the government can formulate a breakthrough policy to improve existing policies in the renewable energy sector, such as by giving ease to investors in the renewable energy sector, including the effective and efficient supply chain management of renewable energy.
Highlights
In the renewable energy sector, the Association of Southeast Asian Nations (ASEAN) has targeted to secure 23% of its primary energy from modern and sustainable renewable energy sources by 2025.This exact figure and the deadline are included in Indonesia’s National Energy Policy for its national renewable energy sector
The renewable energy sector is a crucial point of concern in ASEAN, and one that cannot afford to overlook growing population levels and dwindling reserves of indigenous fossil fuels which have set renewables to be the primary foreseeable alternative for the region
It encompasses targets for renewable energy utilization, elaborated in the National Energy General Plan, that must be completed within one year after the approval of the National Energy Policy
Summary
In the renewable energy sector, the Association of Southeast Asian Nations (ASEAN) has targeted to secure 23% of its primary energy from modern and sustainable renewable energy sources by 2025 This exact figure and the deadline are included in Indonesia’s National Energy Policy for its national renewable energy sector. In order to effectively construct the relevant power infrastructure for renewable energy, some estimates state that ASEAN countries together need to invest at least USD 27 billion annually, a total of USD 290 billion by 2025 It is this same intra-regional demand that, opens up pathways for Indonesia to undertake comparative research with other ASEAN countries to achieve the common goal for renewable energy
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