Secretariat TPR |
WT/TPR/S/401/REV.1 |
S-4§94 |
Indonesia |
2020 |
Sectors |
Grants and direct payments, Loans and financing |
Forestry |
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4.94. Indonesia remains committed to reducing its emissions from deforestation and forest degradation through the REDD+ mechanism. A substantial amount of its carbon emissions is caused by deforestation and forest degradation resulting from land conversion activities, forest fires and illegal logging, a driver of deforestation (see above). Therefore, initiatives to curb illegal logging have formed a central part of any emission reduction strategy. Since 2017, upon the issue of MoEF Regulation No. 70/2017 concerning the Procedures for REDD+ Implementation, the authorities have implemented REDD+ to help reduce illegal logging activities by creating financial incentives to encourage compliance with the law, changes in behaviour and wider governance reforms. Under PR No. 77/2018 concerning the Management of Environmental Funds, the Funds Management Agency was set up. Financial incentives from the REDD+ Results-Based Payments scheme come from grants, donors, domestic income, and the private sector. So far, Indonesia has received grants from RI Norway cooperation, the Green Climate Fund (at the proposal stage), and donor countries managed by the World Bank.
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Keywords
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Climate
Emissions
Environment
Forest
Green
MEAs
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Secretariat TPR |
WT/TPR/S/401/REV.1 |
S-4§95 |
Indonesia |
2020 |
Sectors |
General environmental reference |
Energy, Mining |
Relevant information
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4.95. (...) The Ministry of Energy and Mineral Resources (MoEMR) remains in charge of policy making and implementation, through its directorates with specific responsibilities, including the Directorate General of Mineral and Coal (DGMC), the Directorate General of Oil and Gas (DGOG), Directorate General of Electricity (DGE), and the Directorate General of New and Renewable Energy and Energy Conservation (DGNREEC). Other ministries and agencies, including the MoF, BAPPENAS, the Ministry of SOEs, and the MoEF, remain involved in various areas of the sector. The MoEMR also manages relevant activities of the state owned utilities and energy service companies, and conducts research relevant to mandated energy goals. The Coordinating Ministry of Economic Affairs and the Coordinating Ministry for Maritime Affairs (CMMA) also have jurisdiction over mining and coal energy projects.
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Keywords
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Conservation
Energy
Renewable
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Secretariat TPR |
WT/TPR/S/401/REV.1 |
S-4§97 |
Indonesia |
2020 |
Sectors |
General environmental reference |
Mining |
Relevant information
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4.97. The main policy framework for mining remains unchanged. Under the 2009 Mining Law, the policy objective is to support sustainable national development by, inter alia, setting the following requirements on stakeholders in mining activities: good mining practices; increasing the value added of mining products; improving society; being cautious with regard to environmental impact; (...)
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Keywords
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Secretariat TPR |
WT/TPR/S/401/REV.1 |
S-4§110 |
Indonesia |
2020 |
Sectors |
General environmental reference |
Energy |
Relevant information
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4.110. During the review period, Indonesia remained dependent on energy imports to cover its consumption needs. Total primary energy supply rose by 20%, from 1.2 million barrels of oil equivalent (BOEs) (2013) to 1.5 million BOEs (2018), and its mix (excluding biomass) changed, with oil, gas and hydropower being overtaken by coal, renewables and biofuels. As at 2018, it consisted of oil (38.81%), coal (32.97%), gas (19.67%), hydropower (2.74%), geothermal (1.78%), solar (0.02%), wind (0.03%), other renewables (2.03%), biofuel (1.94%) and biogas (0.01%), compared to 2013 figures of oil (48.13%), coal (24.79%), gas (22.12%), hydropower (3.15%), geothermal (1.25%), and biofuel (0.56%). Final energy consumption continued to considerably outstrip supply, and rose by 10.9% from 844,527 BOEs (2013) to 936,332 BOEs (2018); in 2018, its allocation by type of energy mainly consisted of fuel (38.8%), electricity (18.7%), biodiesel (13.1%), and coal (11.6%), whereas by type of consumer it mainly was transportation (45.06%), industry (33.51%) and households (14.76%). To meet its 2018 energy consumption needs, Indonesia imported 349,201 BOEs, of which 47.4% was petroleum fuel, 32.4% crude oil, 13.6% liquefied natural gas (LNG), and 6.6% coal and electricity (Section 4.2.2.2).
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Keywords
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Secretariat TPR |
WT/TPR/S/401/REV.1 |
S-4§111 |
Indonesia |
2020 |
Sectors |
General environmental reference |
Energy |
Relevant information
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4.111. Under the 2014 National Energy Policy (Kebijakan Energi Nasional, KEN), a comprehensive policy covering both the supply and demand sides, the authorities aimed at achieving security of the domestic energy supply by reducing gasoline dependency and increasing the use of renewable energy. It also addresses: the availability of energy to meet the nation's requirements; energy development priorities; the utilization of national energy resources; and national energy buffer reserves. The KEN sets a clear target of the share of each type of primary energy, from 2025 to 2050, as follows: new and renewable energy (NRE) at least 23% in 2025 and 31% in 2050; oil less than 25% in 2025 and 20% in 2050; coal at least 30% in 2025 and 25% in 2050; and gas at least 22% in 2025 and 24% in 2050. The RPJMN 2015-19 was, inter alia, aimed at achieving energy sovereignty by utilizing domestically available energy resources (gas, coal and hydropower), as well as fulfilling energy demand by prioritizing the development of renewable energy (Section 2.2.2). The National General Energy Plan (Rencana Umum Energi Nasional, RUEN), consisting of a cross sectorial strategy and an implementation plan to achieve the 2014 KEN objectives, was issued in March 2017. The RUEN sets out the results of the energy demand-supply modelling until 2050, and the policies and strategies to be undertaken to achieve those targets. Under the RUEN, the Government seeks to re-emphasize energy use as a driver of the national economy. The RUEN's objectives include ensuring universal access to affordable, reliable and modern energy services; increasing the electrification ratio to 100% by 2020; construction of biogas infrastructure (preparing a roadmap to achieve biogas production of 47.4 million standard cubic feet per day by 2025 for the household sector); accelerating the substitution of oil fuel with gas in the household sector; and developing a city gas network for 4.7 million household connections by 2025. It also serves as a reference for central and local governments, SOEs and other stakeholders to contribute to improving national energy security and equitable access to energy. The RUEN, which is coordinated by the National Energy Council, is to be reviewed every five years, or whenever there are changes to the fundamentals of the KEN or strategic energy policies.
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Keywords
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Secretariat TPR |
WT/TPR/S/401/REV.1 |
S-4§141 |
Indonesia |
2020 |
Sectors |
Other support measures |
Energy |
Relevant information
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4.141. During the review period, very significant changes to Indonesia's fuel subsidy policy were made. (...) Since 2014, falling energy prices and substantial reforms have allowed significant reduction in the entire energy subsidy bill. (...)
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Keywords
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Secretariat TPR |
WT/TPR/S/401/REV.1 |
S-4§142 |
Indonesia |
2020 |
Sectors |
General environmental reference |
Energy |
Relevant information
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4.142. During the review period, on-grid installed power plant (PP) capacity increased by 22%, from about 51.0 GW (2013) to 62.2 GW (or 64.9 GW off-grid, 2018); in 2018, the fuel mix consisted of coal/steam PPs (50.7%), combined cycle (gas and steam turbine) PPs (18%), gas PPs (8.6%), hydro PPs (7.1%), diesel PPs (6.8%), gas engine PPs (3.8%), and other renewable energy PPs (1.2%) (...)
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Keywords
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Secretariat TPR |
WT/TPR/S/401/REV.1 |
S-4§143 |
Indonesia |
2020 |
Sectors |
Investment measures |
Energy |
Relevant information
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143. (...) The 2017 strategy of assigning many fossil fuel-based projects to PLN subsidiaries is now being applied to some renewables projects too; the PLN generally expects its subsidiary to take a 51% shareholding in a project's special purpose vehicle. (...)
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Keywords
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Secretariat TPR |
WT/TPR/S/401/REV.1 |
S-4§158 |
Indonesia |
2020 |
Sectors |
General environmental reference |
Energy |
Relevant information
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4.158. Despite its enormous potential in NRE resources, Indonesia has been relatively slow to develop renewable energy. Fuel subsidies, low electricity tariffs, high NRE PP production costs, complex regulations, legal uncertainties, lack of domestic support, lack of low-interest financing, difficulties in accessing reliable and efficient technology, logistical challenges, and extensive cheap coal resources have seemingly deterred potential renewables investments (Sections 4.2.2, 4.2.2.1.2 and 4.2.2.3). Consequently, production of renewable energy remains modest compared to fossil energy production. Three classes of NRE sources are in place: sources already being widely used in commercial operations (e.g. geothermal, hydro and biomass); sources being developed commercially but with some residual concerns over the regulatory and commercial aspects (e.g. solar and wind); and sources at the research stage only (e.g. ocean energy). Hydropower remains the largest single source of renewable power (Section 4.2.2.3). Despite naturally high solar penetration across most parts of the country, solar photovoltaic panel deployment currently remains limited (estimated at 109 Mega Watt peaks). With Indonesia possessing one of the largest geothermal resources in the world (total resources of 23.9 GW), its share in the country's fuel mix is expected to grow almost fourfold, from 2,130.7 MW (2020) to 8 GW in 2030. Although wind has not played an important role in the fuel mix so far, progress has been observed, with the 75 MW Sidrap wind farm in South Sulawesi becoming operational in March 2018.
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Keywords
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Secretariat TPR |
WT/TPR/S/401/REV.1 |
S-4§160 |
Indonesia |
2020 |
Sectors |
General environmental reference |
Energy |
Relevant information
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4.160. The overall primary policy objectives in expanding the use of NRE are: to improve energy security by diversifying the feedstocks used by the PLN and IPPs to generate power and encourage the use of renewable energy as an ancillary source where it is readily available and untapped; to accelerate improvements to the electrification ratio and access to the energy infrastructure, particularly for areas without grid access (i.e. rural, remote and border areas, and islands); and to contribute towards the attainment of greenhouse gas (GHG) emissions targets, and encourage the green economy, so as to cut GHG emissions by 29% by 2030.
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Keywords
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Climate
Emissions
Energy
Green
Renewable
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