Indonesia rises one rank to 26th in this year’s CCPI, receiving an overall medium rating. The country earns a high in the Renewable Energy category, medium in Energy Use and Climate Policy, and low in GHG Emissions.
Updated Indonesian NDC is only provisional
Indonesia submitted an updated Nationally Determined Contribution (NDC) in September 2022. However, the CCPI experts criticise its lack of ambition and note that the Indonesian government stated the NDC update is only provisional until the next NDC update in 2024.
Presidential Regulation 112 on renewable energy, covering the topic of energy transition, was also enacted in September 2022. This includes a commitment to stop building new coal-fired power plants, except for projects approved before 2022. It also includes a roadmap for speeding up coal retirement and a coal phase-out by 2050. The regulation could serve as much-needed legal basis for future acceleration of energy transformation.
Detailed plan for coal-phase out needed
The CCPI experts welcome the plans to phase out coal, along with a new target aiming to achieve 23% renewable energy use by 2025. Yet the experts also note there is no detailed plan for the coal phase-out, and criticise a gap between regulations and their implementation. Indonesia is among the nine countries responsible for 90% of global coal production. This is incompatible with the 1.5°C target.
Moreover, there is a new forestry and other land use target that aims to achieve net carbon sequestration through the forestry and land use sector by 2030. A cut in the annual deforestation quota, however, is needed.
Indonesia needs to enhance its currently insufficient NDC to make it 1.5°C-compatible. Regulations to incentivise renewable energy and a clear roadmap to achieve the targets are also needed.
The following national experts agreed to be mentioned as contributors for this year’s CCPI:
- Andri Prasetiyo (Trend Asia)
- Fabby Tumiwa (Institute for Essential Services Reform)
- Satrio Swandiko Prillianto (GIZ Indonesia)