Despite the challenging policy environment, there are also opportunities for real progress in several areas between now and 2025. This report addresses seven concrete ways in which the Indonesian government can overcome the existing obstacles and make significant progress to grow renewable energy before 2025.
The Goods and Services Tax (GST) has increased the cost of solar photovoltaic (PV) power generation by almost 6 per cent and reduced the cost of coal thermal power generation by 1.6 per cent. The absolute size of the subsidy to coal power generation remains INR 7,685 crore (USD 1.1 billion) higher than for solar PV in 2018.
On January 25, 2017, Indonesian Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan stated, “Indonesia is resolved to increasing its new and renewable energy mix to 23 per cent in 2025 in line with its commitment to reducing its greenhouse gas emissions it had made during the COP 21 conference in Paris in 2015.” The commitment to inc
