ABSTRACT
Despite Indonesia’s high dependency on fossil fuels, developing renewables is an important consideration for future energy planning and electrification programs. The central government aims to increase the share of renewables in the electricity mix significantly over the coming years. At the same time, coal will still dominate the electricity market for decades (EBTKE 2012). The Indonesian case reveals how power struggles and complex governance structures affect renewable energy development in a decentralized country with a fossil fuel-based electricity system and rich in energy-related resources. Transforming the electricity system towards clean and renewable energy sources depends not only on supportive policies and incentive structures from the national government, but also on support from local elites and state-owned companies such as Perusahaan Listrik Negara (PLN) or Pertamina. Coordination across different jurisdictional levels and the fragmented distribution of power resources and capacities significantly shape the Indonesian energy transition. Complex patterns of corruption in a decentralized political system further hamper the realization of small-scale renewable energy projects. Bi-and multilateral donors have promoted renewables in Indonesia for decades – but with limited success concerning any structural effects or systemic changes for an energy transition towards renewables. Sustaining development projects for more than a few years, replicating results and institutionalizing efforts remain critical challenges for donor-driven interventions.
