202 Mariana Silaen et al.
applies from 2015 up to 2019. One of its aims is to increase the contribution of
renewable energy to help move the renewable energy share to 23% of total
primary energy supply by 2025 as mentioned in the NDC. Although the target
for the national energy exists, there is no clear implementation plan from the
government for how the country will meet the goal. Moreover, other policies in
the energy sector often run counter to these commitments, suggesting that
mainstreaming is challenged by other priorities. For instance, Indonesia has
started shifting coal from international markets to meeting domestic energy
demand (IEA, 2014). These targets need concerted efforts and strong support
from the government to better integrate emissions and renewable energy plans
into energy policy frameworks.
Indeed, policy support for fossil fuel undermines meeting both the NDC targets
and the SDGs as the fossil- fuel sector plays a prominent role in economic development for Indonesia. Shifting to a more sustainable economic pathway including
clean energy production faces many barriers as economic growth is prioritised over
other issues. This contradiction is portrayed by the ongoing construction of nonrenewable power plants. Over the past five years, coal capacity has increased by
around 13.6 GW compared to only 1.8 GW of renewable energy (Climate Action
Tracker, 2018). Furthermore, the new power plants do not use the most modern
energy- efficient technologies. The expansion of coal mining also risks the potential lock- in of carbon- intensive infrastructure and financial assets (Atteridge,
Aung, and Nugroho, 2018). As one of the world’s largest coal exporters, Indonesia stands to lose much of this revenue when other countries implement their own
mitigation measures. Other problems, such as low tax revenue and low commodity prices, combined with complex bureaucratic and transparency issues, also
hinder clean energy infrastructure investment (OECD, 2015).
Rethinking renewable energy solutions in Indonesia
Renewable energy solutions, including bioenergy, need to be geographically and
culturally appropriate, low- cost clean fuels that meet energy needs and provide
co- benefits; they also need to be practically advantageous by offering, for
example, simple implementation, good technological availability, and a strong
base of experiential knowledge (Blenkinsopp, Coles, and Kirwan, 2013; Brent
and Kruger, 2009; Urmee and Md, 2016). Expanding the use of renewable
energy sources (RES) is essential to meet future domestic energy demands and
to achieve policy targets. In Indonesia, hydro, geothermal, and biomass are
among the promising sources to develop further. However, to date the combined
installed capacities of these alternatives remains approximately 7.8% of the
total optimum capacities (cited in IEA, 2015).
Bioenergy, the initial object of interest in this narrative, offers many
options that have not yet been widely used. Furthermore, the greater availability of land, favourable climatic conditions for agriculture, and lower labour
costs also support this focus (Widodo and Rahmarestia, 2008). Focusing on
biomass, the nation’s bioenergy comes in many forms of value chains, such as
applies from 2015 up to 2019. One of its aims is to increase the contribution of
renewable energy to help move the renewable energy share to 23% of total
primary energy supply by 2025 as mentioned in the NDC. Although the target
for the national energy exists, there is no clear implementation plan from the
government for how the country will meet the goal. Moreover, other policies in
the energy sector often run counter to these commitments, suggesting that
mainstreaming is challenged by other priorities. For instance, Indonesia has
started shifting coal from international markets to meeting domestic energy
demand (IEA, 2014). These targets need concerted efforts and strong support
from the government to better integrate emissions and renewable energy plans
into energy policy frameworks.
Indeed, policy support for fossil fuel undermines meeting both the NDC targets
and the SDGs as the fossil- fuel sector plays a prominent role in economic development for Indonesia. Shifting to a more sustainable economic pathway including
clean energy production faces many barriers as economic growth is prioritised over
other issues. This contradiction is portrayed by the ongoing construction of nonrenewable power plants. Over the past five years, coal capacity has increased by
around 13.6 GW compared to only 1.8 GW of renewable energy (Climate Action
Tracker, 2018). Furthermore, the new power plants do not use the most modern
energy- efficient technologies. The expansion of coal mining also risks the potential lock- in of carbon- intensive infrastructure and financial assets (Atteridge,
Aung, and Nugroho, 2018). As one of the world’s largest coal exporters, Indonesia stands to lose much of this revenue when other countries implement their own
mitigation measures. Other problems, such as low tax revenue and low commodity prices, combined with complex bureaucratic and transparency issues, also
hinder clean energy infrastructure investment (OECD, 2015).
Rethinking renewable energy solutions in Indonesia
Renewable energy solutions, including bioenergy, need to be geographically and
culturally appropriate, low- cost clean fuels that meet energy needs and provide
co- benefits; they also need to be practically advantageous by offering, for
example, simple implementation, good technological availability, and a strong
base of experiential knowledge (Blenkinsopp, Coles, and Kirwan, 2013; Brent
and Kruger, 2009; Urmee and Md, 2016). Expanding the use of renewable
energy sources (RES) is essential to meet future domestic energy demands and
to achieve policy targets. In Indonesia, hydro, geothermal, and biomass are
among the promising sources to develop further. However, to date the combined
installed capacities of these alternatives remains approximately 7.8% of the
total optimum capacities (cited in IEA, 2015).
Bioenergy, the initial object of interest in this narrative, offers many
options that have not yet been widely used. Furthermore, the greater availability of land, favourable climatic conditions for agriculture, and lower labour
costs also support this focus (Widodo and Rahmarestia, 2008). Focusing on
biomass, the nation’s bioenergy comes in many forms of value chains, such as