This report presents the results of a peer review of low carbon energy policies conducted in Jakarta, Indonesia by a review team of nine experts who visited Indonesia in May 2013. The Indonesia government had issued Law No. 30 in 2007 regarding Energy as overall legal framework, and established the National Energy Council (DEN) to manage and represent interests in renewable energy. While the DEN has set up the appropriate institutional framework, the review team found that the DEN could play a pivotal role in formulating national renewable energy policies as it is already tasked with energy policy in general. The report recommends the creation of a new renewable energy advisory body within the DEN to address specific technological issues related to renewable energy sources. This would also help the full developmennt and implementation of the Regional Energy Master Plan (RUED).
Indonesia has already set very ambitious targets for the promotion of geothermal energy, meanwhile solar and wind energies will need to be developed and expanded further to remote areas and small systems. The review team determined that continued development of solar and wind energies would be highly effective for rural electrification and the reduction of diesel consumption. Hydro energy is also further along than most other renewable energy sources in Indonesia, however greater research and development is necessary to reduce costs and to build turbines that have a increased capacity. The review team also encouraged establishment of clear goals for greater implementation for each form of biofuel currently under development.
The report offers 49 total recommendations on the following subjects:
- Institutional Context
- Renewable Energy Goals, Targets and Strategy
- Regulation and Infrastructure
- Biofuels and Biomass Energy
- Geothermal, Solar and Wind Energy
- Hydro Power Energy
- Power Supply System: FIT, Smart Grid and Private Participation
- Green House Gas Management