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If you’d like more information on the We Mean Business coalition’s policy work, please contact Jen Austin

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Aims to provide information about the lighting quality to the public by showing ratings in order to promote energy savings. 

Allows for loans at an interest rate lower than that provided by national banks available to farmers, particularly for planting palm oil for biofuels. Enables small and medium-size enterprises to obtain low-cost finance from national banks for food and energy crops.

Regulates geothermal activities, outlines procedures and requirements for obtaining permits, bids, data, supervision on geothermal mining business operations, administrative sanctions, etc. 

Stipulates income tax adjustments for energy development projects, including net income reduction, accelerated depreciation, and reduced dividends for foreign investors and compensation for losses.

Pertaining to renewable energy and power plants, stipulates that import duty exemptions are valid for machinery and capital for renewable energy and for capital goods required for public electricity supply (on- and off-grid). Value Added Tax (VAT) exemptions apply to taxable goods imported to develop renewable energy projects, as long as no substitutes are manufactured in Indonesia. The VAT exemption applies to machinery (both constructed and dismantled); while tax may still be raised on spare parts that companies need to use renewable energy for end-product manufacturing.

Aims to diversify domestic biodiesel consumption beyond the transportation sector (Indonesia’s main biodiesel consumer). Sets targets for biodiesel use: Transportation (PSO): 20% by 2020, 25% by 2025 Transportation (Non-PSO): 20% by 2020, 25% by 2025 Industry: 20% by 2020, 25% by 2025 Electricity: 30% by 2020, 35% by 2025 Sets targets for ethanol use: Transportation (PSO): 5% by 2020, 10% by 2025 Transportation (Non-PSO): 10% by 2020, 20% by 2025 Industry: 10% by 2020, 20% by 2025 Sets targets for pure palm oil use: Industry: 20% by 2020, 20% by 2025 Sea Transportation: 20% by 2020, 20% by 2025 Electricity: 20% by 2020, 20% by 2025

By 2025, achieve 30% coal, 22% oil, 23% renewable resources and 25% natural gas in energy mix.

Aims to minimize oil consumption, increase the exploitation and consumption of renewables and coal, optimize gas production and consumption. Stipulates that exports of natural gas and coal are to be reduced gradually, and phased out eventually at a future date to be specified. Aims for an energy price that reflects “the economic equality value.”

Allows accelerated depreciation of fixed assets including investments in the renewable energy sector.

Intends to promote the development of solar power plants. Establishes process for the appointment of a developer to construct and operate a solar PV plant.

Grants Feed-In Tariffs for a period of 20 years in the range of USD 0.145-0.25/kWh and vary by regions. This policy targets development of 250 MW of PV capacity in 22 provinces. Conditions include: a capacity quota of 250MW as the eligible maximum, maximum limit of project size per developer based on the available quota in the region (if quota is below 10MW, there’s no limit; if quota is between 10-100 MW the limit for developers is 20% of the quota; if quota is above 100 MW, the limit for developers is 20 MW), the largest quota is in Java at 150 MW and the smallest quota is 2.5 MW in Papua/West Papua combined provinces. Local content on the project is required (43.8%), subject to the minimum based on the Ministry of Trade and Industry’s regulations. If the requirement is not reached, the FiT will be reduced by the same percentage.

By 2025, expand generation capacity by 45%. The private sector will contribute 57% of the total new capacity. Planned power mix for 45.7GW allocated to Independent Power Producers is: Coal: 25.2GW Gas: 6.7GW Hydro: 6.8GW Geothermal: 5.1GW Others: 1.9GW The unallocated 16.6GW has the following power mix: Coal: 1.7GW Gas: 9.3GW Hydro: 2GW Geothermal: 0.7GW Solar: 2.9GW

Between 2015-2019 add 35 GW of additional electricity capacity, 23% to be from renewables (including Hydro, Geothermal and Solar resources) as set out by the 2014 National Energy Policy (NEP).

Aims to increase the use of biofuel as a replacement fossil-based fuel. Creates the National Team for Biofuel Development to support policy implementation on national and sub-national levels and between sectors. The Biofuel Road Map establishes a specific agenda for biofuel production targets. For the period of 2016-2025: biodiesel utilisation 20% of diesel fuel consumption – 10.22 mln kL bioethanol utilisation 15% of gasoline consumption – 6.28 mln kL biokerosene utilisation – 4.07 mln kL pure plantation oil for power plant use – 1.69 mln kL biofuel utilisation 5% of energy mix – 22.26 mln kL Creates Special Biofuel Zones (SBZ): areas, of at least 10,000 hectares in Java or 100,000 outside Java in size, are dedicated to biofuel crops plantation and transformation. Villages located in the Special Biofuel Zones, known as Energy Self-Sufficient Villages (ESSV), are to receive regional funding to set up renewable energy development plans in accordance with local renewable potentials.

By 2025, 15% of the country’s electricity demand to be from renewable energy sources. Specific targets for energy production from various renewable energy sources are established as follows: Geothermal: 9 500 MW; Small-scale hydropower: 500 MW (on grid) 330 MW (off grid); Solar energy: 80 MW; Biomass for power generation: 810 MW Wind energy: 250 MW (on grid) 5 MW (off grid)

Calls on leaders of Central and local government institutions to save water and energy within their institutional domain. This Presidential Instruction sets an electricity reduction target of 20%, a fuel reduction target of 10%, and a water-use reduction target of 10%.

Aims to establish a GHG inventory administration guideline and an administration to co-ordinate that inventory. Mandates different bodies of the government to produce national, local and corporate greenhouse gas inventories annually. The national inventory is submitted to the UNFCCC and is coordinated by the Ministry of Environment.

Identifies the key sectors in which Indonesia will make emissions reductions: Agriculture, Forestry and Peat land, Energy and Transportation, Industry and Waste Management, and evaluates the potential of NAMA development for these sectors. The Provinces are expected to make their own action plans. Established the target of a 26% reduction in GHG emissions below “Business-as-Usual” by 2020.

Requires that the cement production subsector voluntarily reduce GHG emission intensity by 2% from 2011-2015 and 3% from 2016-2020 below 2009 levels (0.85 tCO2/t cement).

Implements the Regulation on Energy Conservation, establishing provisions for energy preservation and management. Mandates that energy consumers consuming more than 6000 toe per year are obliged to implement energy management through appointing an Energy Manager, developing short, medium, and long term energy conservation programs, conducting regular energy audits (at least once every three years), implementing energy audit recommendations, and submitting annual reports to the Government on the status of energy conservation programs and audit measure implementation.

Establishes differentiated feed-in tariff levels depending on the installation type, its location, and voltage of grid interconnection. Biomass, biogas, municipal waste and hydropower plants below generation capacity of 10 MW benefit from this scheme, though Regulation does not specify how long eligible renewable plants will benefit from introduced tariff. Stipulates that the State electricity company PT Perusahaan Listrik Negara (PT PLN) is obliged to purchase electricity generated from renewable energy installations.

Aims to mitigate emissions in the transportation sector through fuel substitution from oil to gas, ‘car-free’ days, and transit oriented development planning.

Implements the conservation aspect of the Energy Law. Mandates the drafting and adoption of a new National Energy Conservation Master Plan, introduces voluntary energy efficiency standards and energy labeling, and calls for the development of incentives for improved energy management as well as disincentives for non-compliance. Specifies that producers or importers of energy appliances are responsible for implementing energy efficiency labeling. Mandates energy audits and public reporting on energy efficiency.

Directs Mayors, Governors, and Ministers to implement energy and water efficiency in government offices. Establishes the National Taskforce for Energy and Water Efficiency, which is charged with policy development for energy and water efficiency, reducing non-essential use of energy and water, and monitoring and reporting activities to the President.

Establishes a moratorium on new licenses to convert primary natural forests and peat lands. This is part of Indonesia’s commitments under the Letter of Intent signed with the Kingdom of Norway in May 2011 and is intended to facilitate Indonesia’s REDD+ activities.

Promotes sustainable development and establishes environmental planning policy.  Establishes planning phases for environmental protection and management, inventory/data collection processes, the definition and provisions of eco-regions, and the creation of environmental protection and management plans. Stipulates that every business and/or activity that has a substantial impact on the environment is subject to an environmental impact analysis in order to obtain a license to conduct such business or activity. Outlines that the Government is responsible for controlling natural resources; controlling environmental pollution and damage; making strategic environmental assessments; providing quality standards of the environment; regulating legal actions and legal relations between persons and/or other legal subjects; controlling activities which have social impact; and developing a funding system for efforts to preserve environmental functions. Makes provisions for the management of hazardous and toxic materials as well as hazardous and toxic waste.

Aims to promote national energy efficiency, adoption of renewable energy, the diversification of energy supply, the improvement of the storage and transmission of energy, and energy access for remote, under-developed, and rural areas. Establishes the institutional structure for energy management and the National Energy Council (NEC), which is responsible for designing, implementing, and monitoring national energy policy.

Regulates geothermal activities, specifies that geothermal activities will no longer be considered ‘mining activities’ and that tenders for geothermal exploration will now be issued by central government. Requires that local communities either receive a share in revenue or a production bonus from the geothermal power plant.

Establishes agency and its directive to manage and implement REDD+ in Indonesia: develop a national strategy for implementation and develop REDD+ safeguards, standards, and methodologies to measure GHG emissions. Aims at reducing GHG emissions from deforestation and degradation of forest and peatlands and maintain and increase carbon stock through forest conservation, sustainable forest management, and/or rehabilitation and restoration of damaged forest area.

By 2025, 22% minimum of energy supply mix to be from gas, 24% minimum by 2050.

By 2025, 30% minimum of energy supply mix to be from coal, 25% minimum by 2050.

By 2025, less than 25% of energy supply mix to be from oil, less than 20% by 2050.

By 2025, at least 23% of energy supply mix to be from new and renewable energy sources, at least 31% by 2050.

By 2030, 41% conditional reduction in GHG emissions in energy, waste, industrial process and product use, agriculture, and forestry, against BAU scenario, subject to availability of international support for finance, technology transfer and development and capacity building.

By 2030, 29% reduction in GHG emissions in energy, waste, industrial process and product use, agriculture, and forestry against BAU scenario.

By 2020, 26% reduction in GHG emissions in energy, waste, industrial process and product use, agriculture, and forestry, against BAU scenario.