Indonesia serves as an interesting case study to explore energy transition challenges within the Association of Southeast Asian Nations (ASEAN).
Within ASEAN, Indonesia has the largest territory, greatest potential renewable energy resources, highest Gross Domestic Product (GDP), and highest energy consumption, according to the International Energy Agency (IEA).
Despite developing policies and frameworks, having abundant renewable energy resources and increasing energy demand, Indonesia and ASEAN require significant additional financing to support the renewable energy transition to achieve its target of 23 per cent share in the total energy mix.
One of the keys to increase financing and investment in the transition is to attract private sector involvement through profitable mechanisms and increasing business valuation of the renewable energy market.
In order to increase investment, it is critical that policies reflect the reality of the experience for businesses in practice.
This policy brief is produced by Energy Transition Policy Development Forum for ASEAN Indonesia Chair 2023 as part of the ASEAN Energy Side Event Series under the Energy Cooperation Coordinator of ASEAN 2023 Chair Secretariat, supported by Climateworks Centre, Centre for Policy Development (CPD), International Institute for Sustainable Development (IISD), Indonesia Research Institute for Decarbonization (IRID), Institute for Essential Services Reform (IESR), and Purnomo Yusgiantoro Center (PYC).
This brief summarises and reflects discussions our ASEAN Energy Business Forum’s Side Event on 25 August 2023.