This report presents the results of a peer review of low carbon energy policies conducted in Jakarta, Indonesia by a Review Team of ten experts who visited Indonesia in May 2013. Though the Indonesian Government has a clear framework set up, however the review team recommends that the DEN can play a pivotal role under the leadership of the chairman in formulating the National Energy Policy (KEN) and the National Energy Master Plan (RUEN).

Indonesia has already set a very ambitious target for the promotion of renewable energy. Under the 2006 National Energy Policy (2006 KEN) which is still in force, the share target of renewable energy, nuclear and liquefied coal in total primary energy consumption mix is expected to become greater than 17% in 2025. Indonesia has a priority to develop bioenergy in the form of biofuel (liquid), biogas, bio-solid (bio-briquettes, pellets), and bio-electricity) by establishing conducive policies and regulations; this is not only for environmental consideration but also for increasing the energy security. So far the biodiesel program in Indonesia became very successful therefore the implementation on biodiesel mixed fuel transportation sector has increased from 5% to 7.5% on the PSO transportation sector in 2013.

However, to achieve the renewable goals in the 2006 KEN, Indonesia will likely need to reduce market barriers to investments in other renewable energy technologies and addressing other non-technical barriers like improving transparency in the permitting process will be critical for achieving the diversification and renewable energy goals.

This report goes on to offer 49 total recommendations on the following topics:

• 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