Indonesia Energy Dashboard

Grid Summary

Clean Development Mechanisms (CDM) is one of the mechanisms under the Kyoto Protocol that allows the developing countries selling emission reduction from various projects to the developed countries. The main emitter in energy sector, particularly from power generation sub-sector, is the coal power plants. Due to decreasing oil exploitation activities in the country, Indonesia has been a net oil importer for the past few years. Hence, through the revised energy policy, the government of Indonesia intends to adopt the energy mix scenario which may further increase the number of coal power plants, considering coal energy as the least-cost option. However, the policy also emphasizes the utilization of alternatives sources of energy, including renewable energy, and also encourages energy efficiency measures, especially from industry sector. CDM scheme in Indonesia would play an important role to provide incentives in promoting and optimizing the utilization of the abundant Renewable Energy (RE) resources as well as energy efficiency (EE) measures in Indonesia, which give a more environmentally-friendly option compared to conventional fossil fuel such as coal and oil...more information.

The Government of Indonesia is committed to increase funding for poverty alleviation, education, and health. For example, it has launched the National Community Empowerment Programme (PNPM), which seeks to create short-term employment for thousands of Indonesians and improve rural infrastructure through block grants to sub-districts. It is anticipated that by 2009 PNPM will target 5,263 sub-districts in Indonesia with a budget amounting to approximately 19 billion USD. In addition to this programme, a Conditional Cash Transfer programme is also being piloted that will provide cash support for the poorest of the poor to access health and education services. However, with a global economic slowdown driven by high fuel and food prices, Indonesia’s ongoing poverty reduction efforts will be further tested. While the country has benefited somewhat from the hike in commodity prices such as coal and palm oil, being a net oil importer the country has to bear the burden of unprecedented rise in oil prices. As a consequence, the government had to raise the fuel prices by another 29 percent in May 2008. To offset the impact for the poor, the government is providing direct cash transfers to the poorest households...more information.