Friday, January 6, 2017

Transition pathways and risk analysis for Bioenergy in Indonesia

Governing almost 260 million people dispersed on hundreds of Islands leads to institutional complexities. Indonesia’s form of government is a presidential system where the president is elected directly by the people and draws up legislation together with the parliament (Kawamura 2010) (Kawamura, 2010). There are 34 ministries at national level. The decentralisation policies of the past led to a total of 34 provinces and 82,330 local government units, which all retain certain policy making power(GRAPHIQ, 2016).

The policy architecture itself is also complex. When it comes to climate policy, there is the NDC of Indonesia which sets a 26% emissions reduction target (41% with international help) by 2020 compared to business as usual (Republic of Indonesia, 2015). Nationally, this has been translated into the National Action Plan for Greenhouse Gas Emission Reduction (RANGRK) which confirms the objectives stated in the NDC. In the energy sector, the flagship project of the government is the 2014 National Energy Policy (NEP 14) which sets out, amongst other things, a target for the national energy mix. By 2025, 30% of energy should be sourced from coal, 25% from gas, 23% from Renewables and 22% from oil (IEA, 2016). In addition, Indonesia has set an interim target of a 19% share of renewable energies by 2019 (Mittal, 2015).