An assessment of energy policy impacts on achieving Sustainable Development Goal 7 in Indonesia

• Published in: Energy for sustainable development 2020-12, Vol.59, p.33-48
• Main Authors: Santika, Wayan G., Urmee, Tania, Simsek, Yeliz, Bahri, Parisa A., Anisuzzaman, M.
• Format: Article
• Language: English
• Subjects: Energy access; Energy efficiency; Energy policy effectiveness; Indonesia; Renewable energy; Sustainable Development Goals
• ISSN: 0973-0826
• DOI: 10.1016/j.esd.2020.08.011

As countries start to implement the Sustainable Development Goals in their national development agendas, reviews of the current policy environment are necessary to ensure that the goals are achievable by 2030. The present study assesses the effectiveness of energy policy in Indonesia in supporting progress towards universal energy access, a substantial increase in renewable energy deployment, and improvement in energy efficiency. Laws and regulations related to energy were reviewed, and their contribution to achieving the energy targets of the Sustainable Development Goals in Indonesia was evaluated in terms of policy effectiveness. Results show that providing electricity for the remaining 1.1 million households living in the outermost and least developed regions of the archipelago is very challenging. However, Indonesia is still on track to achieve 100% residential electrification by 2030 as long as enough budget is allocated annually. Indonesia may not be able to provide access to clean cooking fuels and technology for everyone by 2030. The current policy focusing mostly on gas for cooking will be less effective in reaching the remaining households that cook with solid biomass and usually live in poverty. Similarly, the current policy scenario is not sufficient to allow enough progress to achieve the renewable energy target. Finally, the assessment of energy efficiency policy suggests that sectoral energy use is shaped by variables and regulation not primarily intended to improve energy efficiency. •The electrification program as a national priority improves electricity access.•The clean cooking energy target may be missed as policy focuses on gas use only.•Regulatory uncertainties discourage investment in renewable electricity.•Energy use is shaped by policies not primarily intended for energy conservation.