National Policy Recommendations for Indonesia

This knowledge product describes Indonesia’s energy transition challenges and opportunities, emphasizing the need to move beyond non-market-based policies such as price controls, fuel subsidies, and coal Domestic Market Obligation (DMO) schemes. Achieving the 100% renewable energy (RE) target by 2050 requires accelerated RE project development and reduced reliance on fossil fuel infrastructure. The document outlines six key recommendations: raising RE targets in energy plans, aligning national and regional policies, promoting sustainable RE development, phasing out coal DMO schemes, reallocating fuel subsidies to an RE Fund, and restoring carbon credit rights for RE producers.