Indonesia

To support the acceleration of renewable energy development and reduce reliance on coal-fired power plants (CFPPs), ETP is working with Coordinating Ministry of Economic Affairs (CMEA) to assess the incentive and disincentive mechanisms on energy transition projects. This initiative builds upon Presidential Regulation No. 112 of 2022, which outlines key policies including the streamlining of electricity procurement, a ban on new CFPPs, updated electricity pricing, and the provision of both fiscal and non-fiscal incentives. This project will address existing gaps by analysing the effectiveness of current incentive and disincentive frameworks in accelerating renewable energy deployment, reducing CFPPs’ capacity factors, and enabling early retirement of CFPPs.
It will also evaluate the broader fiscal and macroeconomic impacts. Through literature reviews, regulatory analysis, and stakeholder consultations, the project will identify best practices for designing balanced, business-viable, and economically sound incentives and disincentives. Eventual findings will inform policy recommendations and serve as a strategic reference for the Government of Indonesia to support its enhanced NDCs, Net Zero Emissions target by 2060, and Just Energy Transition Partnership (JETP) commitments.

Implementing Partners

PWC Indonesia

In partnership with

Coordinating Ministry of Economic Affairs (CMEA)

Strategic Outcome

Policy Alignment with Climate Commitments

Project Documents

This project is currently underway. Related publications and reports will be made available in due course.