Indonesia’s Sustainable Green Economy Policy in the Energy Sector: Challenges and Expectations
DOI:
https://doi.org/10.18196/jmh.v32i1.24109Keywords:
Climate, Energy, Feasible Green EconomyAbstract
This paper comprehensively analyzes the challenges and prospects for achieving a sustainable green economy in Indonesia's energy sector, where fossil fuels dominate approximately 90.4 percent of the domestic energy supply, making the sector a major contributor to emissions. Despite ambitious targets, renewable energy development has progressed slowly, with only 0.97 GW capacity achieved out of a 3.4 GW target by the fourth quarter of 2023. Employing a normative research approach, this study draws from primary and secondary data sources to explore the obstacles hindering green economic transformation, including limited financing for technological innovation, insufficient long-term environmental policies, human resource constraints, institutional structures, regulatory coherence, and the need to balance economic tradeoffs. Key findings highlight that Indonesia must bolster its legal framework, strengthen infrastructure, foster policy alignment, secure financing, enhance technological capabilities, and expand renewable energy capacity. This paper seeks to contribute insights for formulating an integrated, resilient strategy to accelerate Indonesia's transition to a green economy within the energy sector.References
Agustina, Enny, ‘Juridical Analysis of Disharmonization between Local Leaders and Deputy Local Leaders in Local Government Systems’, Jurnal Bina Praja, 12.2 (2020), 181–92 <https://doi.org/10.21787/jbp.12.2020.181-192.
Al-Shetwi, Ali Q., ‘Sustainable Development of Renewable Energy Integrated Power Sector: Trends, Environmental Impacts, and Recent Challenges’, Science of The Total Environment, 822 (2022), 153645. https://doi.org/10.1016/j.scitotenv.2022.153645.
Alfred Boediman, Raden Aswin Rahadi, and Bagus Aditya Nugraha, ‘An Overview of Indonesian Renewable Energy Studies and Its Investment Opportunities’, Indonesian Journal of Energy, 4.2 (2021), 87–100. https://doi.org/10.33116/ije.v4i2.123.
Arkema, Katie K., Jade M. S. Delevaux, Jessica M. Silver, Samantha G. Winder, Lisa M. Schile-Beers, Nadia Bood, and others, ‘Evidence-Based Target Setting Informs Blue Carbon Strategies for Nationally Determined Contributions’, Nature Ecology & Evolution, 7.7 (2023), 1045–59. https://doi.org/10.1038/s41559-023-02081-1.
Ashar, Baihaqi, Hendi Pratama, Rayhan Hidayat, and Wirawan Firman Nurcahya, ‘Dampak Kebijakan Hilirisasi Nikel Terhadap Peningkatan Pendapatan Negara Bukan Pajak (Minerba)’, Journal of Law, Administration, and Social Science, 4.5 (2024), 798–808. https://doi.org/10.54957/jolas.v4i5.890.
Aulawi, Muhamad Haris, Yordan Gunawan, M. Hanaan Alfarizi, and Manuel Campos Lago, ‘Governing Indonesia’s Plan to Halt Bauxite Ore Exports: Is Indonesia Ready to Fight Lawsuit at the WTO?’, Bestuur, 11.1 (2023), 26–42. https://doi.org/10.20961/bestuur.v11i1.69178.
Bhowmik, Chiranjib, Sumit Bhowmik, Amitava Ray, and Krishna Murari Pandey, ‘Optimal Green Energy Planning for Sustainable Development: A Review’, Renewable and Sustainable Energy Reviews, 71 (2017), 796–813. https://doi.org/10.1016/j.rser.2016.12.105.
Chen, Liang, Haonan Yang, Huan Huang, Ming Chang, Xinyuan Wang, Dong Han, and others, ‘How Do Natural and Socio-Economic Factors Influence the Sustainable Development of the Ecological Environment in the World Natural Heritage Sites? Evidence from the Jiuzhaigou, China’, Journal of Cleaner Production, 428 (2023), 139238. https://doi.org/10.1016/j.jclepro.2023.139238.
Duarah, Prangan, Dibyajyoti Haldar, Anil Kumar Patel, Cheng-Di Dong, Reeta Rani Singhania, and Mihir Kumar Purkait, ‘A Review on Global Perspectives of Sustainable Development in Bioenergy Generation’, Bioresource Technology, 348 (2022), 126791. https://doi.org/10.1016/j.biortech.2022.126791.
Flora, Henny Saida, Mac Thi Hoai Thuong, and Ratna Deliana Erawati, ‘The Orientation and Implications of New Criminal Code: An Analysis of Lawrence Friedman’s Legal System’, Jurnal IUS Kajian Hukum Dan Keadilan, 11.1 (2023), 113–25. https://doi.org/10.29303/ius.v11i1.1169.
Garcia, Solange, Yara Cintra, Rita de Cássia S.R. Torres, and Fabiano Guasti Lima, ‘Corporate Sustainability Management: A Proposed Multi-Criteria Model to Support Balanced Decision-Making’, Journal of Cleaner Production, 136 (2016), 181–96. https://doi.org/10.1016/j.jclepro.2016.01.110.
Georgeson, Lucien, Mark Maslin, and Martyn Poessinouw, ‘The Global Green Economy: A Review of Concepts, Definitions, Measurement Methodologies and Their Interactions’, Geo: Geography and Environment, 4.1 (2017). https://doi.org/10.1002/geo2.36.
Gunawan, Yordan, and Mohammad Hazyar Arumbinang, ‘The Climate Change Litigation Based Human Rights Approach in Corporations: Prospects and Challenges’, Journal of Human Rights, Culture and Legal System, 3.2 (2023), 288–307. https://doi.org/10.53955/jhcls.v3i2.116.
Gunawan, Yordan, and Yovi Cajapa Endyka, ‘The Protection of Small and Medium Enterprises in Yogyakarta: The Challenges of ASEAN Economic Community’, Pertanika Journal of Social Sciences and Humanities, 25.October (2017), 199–206
Gunawan, Yordan, Yasir Perdana Ritonga, Mita Amelia, Siti Septiana K. Harun, and Nisa Nurhofipah Ramadani, ‘Does the Protection of Minority Groups in Xinjiang Fail?’, Sriwijaya Law Review, 4.2 (2020), 205–20. https://doi.org/10.28946/slrev.Vol4.Iss2.432.pp205-220.
Guzzo, D., B. Walrave, N. Videira, I.C. Oliveira, and D.C.A. Pigosso, ‘Towards a Systemic View on Rebound Effects: Modelling the Feedback Loops of Rebound Mechanisms’, Ecological Economics, 217 (2024), 108050. https://doi.org/10.1016/j.ecolecon.2023.108050.
Huang, Yimin, Yuan Wang, Jiaoting Peng, Fan Li, Lin Zhu, Huihui Zhao, and others, ‘Can China Achieve Its 2030 and 2060 CO2 Commitments? Scenario Analysis Based on the Integration of LEAP Model with LMDI Decomposition’, Science of The Total Environment, 888 (2023), 164151. https://doi.org/10.1016/j.scitotenv.2023.164151.
Jannah, R, L M Kolopaking, S Adiwibowo, and S Maarif, ‘Climate Change, Villages and Agromaritime: Current Conditions and Future Challenges in Indonesia’, IOP Conference Series: Earth and Environmental Science, 1359.1 (2024), 012055. https://doi.org/10.1088/1755-1315/1359/1/012055.
Jiao, Jianling, Jiangfeng Song, and Tao Ding, ‘The Impact of Synergistic Development of Renewable Energy and Digital Economy on Energy Intensity: Evidence from 33 Countries’, Energy, 295 (2024), 130997. https://doi.org/10.1016/j.energy.2024.130997.
Jurumai, La Pande, Afri Ahyarky Abidin, Endang Triningsih Soetrisno, and Dwiprayogo Wibowo, ‘Impact of Population Growth and Housing Development on the Riverine Environment: Identifying Environmental Threat and Solution in the Wanggu River, Indonesia’, Ecological Modelling, 486 (2023), 110540. https://doi.org/10.1016/j.ecolmodel.2023.110540.
Kadir Jaelani, Abdul, Reza Octavia Kusumaningtyas, and Asron Orsantinutsakul, ‘The Model of Mining Environment Restoration Regulation Based on Sustainable Development Goals’, Legality : Jurnal Ilmiah Hukum, 30.1 SE-Journal's Articles (2022), 131–46. https://doi.org/10.22219/ljih.v30i1.20764.
Kelly, Frank J., and Julia C. Fussell, ‘Improving Indoor Air Quality, Health and Performance within Environments Where People Live, Travel, Learn and Work’, Atmospheric Environment, 200 (2019), 90–109. https://doi.org/10.1016/j.atmosenv.2018.11.058.
Khan, Zeeshan, Mohammad Razib Hossain, Ramez Abubakr Badeeb, and Changyong Zhang, ‘Aggregate and Disaggregate Impact of Natural Resources on Economic Performance: Role of Green Growth and Human Capital’, Resources Policy, 80 (2023), 103103. https://doi.org/10.1016/j.resourpol.2022.103103.
Kibria, Md. Golam, Utpol K. Paul, Ashik Hasan, Md. Shahriar Mohtasim, Barun K. Das, and Monjur Mourshed, ‘Current Prospects and Challenges for Biomass Energy Conversion in Bangladesh: Attaining Sustainable Development Goals’, Biomass and Bioenergy, 183 (2024), 107139. https://doi.org/10.1016/j.biombioe.2024.107139.
Kurniawan, Tonni Agustiono, Christia Meidiana, Hui Hwang Goh, Dongdong Zhang, Mohd Hafiz Dzarfan Othman, Faissal Aziz, and others, ‘Unlocking Synergies between Waste Management and Climate Change Mitigation to Accelerate Decarbonization through Circular-Economy Digitalization in Indonesia’, Sustainable Production and Consumption, 46 (2024), 522–42. https://doi.org/10.1016/j.spc.2024.03.011.
Licastro, Antonio, and Bruno S. Sergi, ‘Drivers and Barriers to a Green Economy. A Review of Selected Balkan Countries’, Cleaner Engineering and Technology, 4 (2021), 100228. https://doi.org/10.1016/j.clet.2021.100228.
Lopes, Rita, and Nuno Videira, ‘Modelling Feedback Processes Underpinning Management of Ecosystem Services: The Role of Participatory Systems Mapping’, Ecosystem Services, 28 (2017), 28–42. https://doi.org/10.1016/j.ecoser.2017.09.012.
Maidasari, Tika, Lukman Yudho Prakoso, and Sri Murtiana, ‘Renewable Energy As A Green Economy Stimulus In Indonesia’, Jurnal Energi Baru Dan Terbarukan, 4.3 (2023), 183–91. https://doi.org/10.14710/jebt.2023.18496.
Martitah, Martitah, Arif Hidayat, Rahayu Fery Anitasari, Malik Akbar Mulki Rahman, and Triska Rahmatul Aini, ‘Transformation of the Legislative System in Indonesia Based on the Principles of Good Legislation’, Journal of Indonesian Legal Studies, 8.2 (2023), 545–94. https://doi.org/10.15294/jils.v8i2.69262.
Maulidia, Martha, Paul Dargusch, Peta Ashworth, and Fitrian Ardiansyah, ‘Rethinking Renewable Energy Targets and Electricity Sector Reform in Indonesia: A Private Sector Perspective’, Renewable and Sustainable Energy Reviews, 101 (2019), 231–47. https://doi.org/10.1016/j.rser.2018.11.005.
Moeliono, Moira, Maria Brockhaus, Caleb Gallemore, Bimo Dwisatrio, Cynthia D. Maharani, Efrian Muharrom, and others, ‘REDD+ in Indonesia: A New Mode of Governance or Just Another Project?’, Forest Policy and Economics, 121 (2020), 102316. https://doi.org/10.1016/j.forpol.2020.102316.
Murshed, Muntasir, Nicholas Apergis, Md Shabbir Alam, Uzma Khan, and Sakib Mahmud, ‘The Impacts of Renewable Energy, Financial Inclusivity, Globalization, Economic Growth, and Urbanization on Carbon Productivity: Evidence from Net Moderation and Mediation Effects of Energy Efficiency Gains’, Renewable Energy, 196 (2022), 824–38. https://doi.org/10.1016/j.renene.2022.07.012.
Otamendi-Irizar, Irati, Olatz Grijalba, Alba Arias, Claudia Pennese, and Rufino Hernández, ‘How Can Local Energy Communities Promote Sustainable Development in European Cities?’, Energy Research & Social Science, 84 (2022), 102363. https://doi.org/10.1016/j.erss.2021.102363.
Parluhutan, Dian, Satya Arinanto, and Velentina Napitupulu, ‘The Green Economy and Decentralization of Natural Resources Management (DNRM) Policy in Indonesia under the International Law Framework: Quo Vadis?’, IOP Conference Series: Earth and Environmental Science, 1111.1 (2022), 012087. https://doi.org/10.1088/1755-1315/1111/1/012087.
Purvis, Ben, Yong Mao, and Darren Robinson, ‘Three Pillars of Sustainability: In Search of Conceptual Origins’, Sustainability Science, 14.3 (2019), 681–95. https://doi.org/10.1007/s11625-018-0627-5.
Rahman, Arief, Russell Richards, Paul Dargusch, and David Wadley, ‘Pathways to Reduce Indonesia’s Dependence on Oil and Achieve Longer-Term Decarbonization’, Renewable Energy, 202 (2023), 1305–23. https://doi.org/10.1016/j.renene.2022.11.051.
Ray, David, and Lili Yan Ing, ‘Addressing Indonesia’s Infrastructure Deficit’, Bulletin of Indonesian Economic Studies, 52.1 (2016), 1–25. https://doi.org/10.1080/00074918.2016.1162266.
Rudiany, Novita Putri, and Keista Puti Yesandi, ‘“Greening” the National Growth: How Global Green Growth Institute (GGGI) Collaborates with Indonesia in 2014-2020’, Insignia: Journal of International Relations, 10.2 (2023), 199. https://doi.org/10.20884/1.ins.2023.10.2.9707.
Ruggerio, Carlos Alberto, ‘Sustainability and Sustainable Development: A Review of Principles and Definitions’, Science of The Total Environment, 786 (2021), 147481. https://doi.org/10.1016/j.scitotenv.2021.147481.
Salman, Abdul Matin bin, and Eko Asmanto, ‘Islamic Environmental Stewardship: A Sociological Approach to Hadith and Legal Frameworks for Ecological Responsibility’, Volksgeist: Jurnal Ilmu Hukum Dan Konstitusi, 7.2 SE-Articles (2024), 361–78. https://doi.org/10.24090/volksgeist.v7i2.12205.
Sasmito, Sigit D., Mohammad Basyuni, Age Kridalaksana, Meli F. Saragi-Sasmito, Catherine E. Lovelock, and Daniel Murdiyarso, ‘Challenges and Opportunities for Achieving Sustainable Development Goals through Restoration of Indonesia’s Mangroves’, Nature Ecology & Evolution, 7.1 (2023), 62–70. https://doi.org/10.1038/s41559-022-01926-5.
Setiawan, Sigit, Poppy Ismalina, R. Nurhidajat, Cornelius Tjahjaprijadi, and Yusuf Munandar, ‘Green Finance In Indonesia’s Low Carbon Sustainable Development’, International Journal of Energy Economics and Policy, 11.5 (2021), 191–203. https://doi.org/10.32479/ijeep.11447.
Suroso, Djoko Santoso Abi, Budhi Setiawan, P. Pradono, Zahara Sitta Iskandar, and Mulia Asri Hastari, ‘Revisiting the Role of International Climate Finance (ICF) towards Achieving the Nationally Determined Contribution (NDC) Target: A Case Study of the Indonesian Energy Sector’, Environmental Science & Policy, 131 (2022), 188–95. https://doi.org/10.1016/j.envsci.2022.01.022.
Swainson, Luke, and Sango Mahanty, ‘Green Economy Meets Political Economy: Lessons from the “Aceh Green” Initiative, Indonesia’, Global Environmental Change, 53 (2018), 286–95. https://doi.org/10.1016/j.gloenvcha.2018.10.009.
Vinx, Lars, ‘Pauer-Studer and Radbruch’s Second Thesis’, Jurisprudence, 14.2 (2023), 282–90. https://doi.org/10.1080/20403313.2023.2204689.
Wang, Shuguang, Luang Sun, and Sajid Iqbal, ‘Green Financing Role on Renewable Energy Dependence and Energy Transition in E7 Economies’, Renewable Energy, 200 (2022), 1561–72. https://doi.org/10.1016/j.renene.2022.10.067.
Webb, Jeremy, Thomas Longden, Fanny Boulaire, Marcel Gono, and Clevo Wilson, ‘The Application of Green Finance to the Production of Blue and Green Hydrogen: A Comparative Study’, Renewable Energy, 219 (2023), 119236. https://doi.org/10.1016/j.renene.2023.119236.
Yan, Min, ‘Permitting Dual Class Shares in the UK Premium Listing Regime – a Path to Enhance Rather than Compromise Investor Protection’, Legal Studies, 42.2 (2022), 335–57. https://doi.org/10.1017/lst.2021.50.
Yana, Syaifuddin, Muhammad Nizar, Irhamni, and Dewi Mulyati, ‘Biomass Waste as a Renewable Energy in Developing Bio-Based Economies in Indonesia: A Review’, Renewable and Sustainable Energy Reviews, 160 (2022), 112268. https://doi.org/10.1016/j.rser.2022.112268.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Dinda Keumala, Ahmad Sabirin, Setiyono Setiyono, M. Fariduddin Az, Jimi Rambo Arranchado
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
