Fragmented government practices are locking Indonesia into energy trilemma. As global governance shifts from a legally binding top-down approach to a bottom-up framework centered on nationally determined contributions (NDCs), the significance of having strong national governance structures becomes more crucial.

Summary

Recent analysis conducted by SNAPFI researchers in Indonesia seeks to understand how the current governance system is shaping how the country develops and implements climate-related policies. The research aims to find ways to improve Indonesian climate-energy governance and accelerate the achievement of climate commitments and reveals that:

  • Certain ministries in Indonesia continue to perceive climate change action as separate to the country’s overall development agenda. As such, Indonesia’s energy trilemma (achieving energy sovereignty, affordability and sustainability) continues to overpower efforts for a just transition towards 2060.
  • Important energy policies in Indonesia often depend on political will and political context. The outcome of the 2024 Presidential election will be key in determining whether Indonesia meets its climate commitments.
  • Due to the economic importance of the energy sector certain groups use informal practices to manipulate energy policies in their favour.
  • Innovative climate financing is needed to fulfil Indonesia’s climate commitments since state budget allocation currently favours coal and existing forms of international support are often tied to donor interests and take the form of loans.