Radical changes proposed for Indonesia to meet clean energy target

Indonesia will require nothing less than a policy overhaul—starting with its state-owned power utility—to meet the target of having 23 per cent of its electricity generated from hydro, solar and other renewable sources in 2025, according to a new report released last week. Unless Southeast Asia’s largest economy “radically changes” its roll-out of renewable energy, clean sources will only make up 12 per cent of the energy mix in 2025, said management consulting firm AT Kearney in its report titled Indonesia’s Energy Transition: A Case for Action. This means it would only achieve about half its target. There are four main barriers to renewable energy growth, but at the heart of the issue is that no single agency in Indonesia is accountable for the development of renewable energy, stated the report, done in partnership with the Employers’ Association of Indonesia, or Asosiasi Pengusaha Indonesia (APINDO), which has over 14,000 corporate members across the country. The government should make state-owned power utility PLN, or Perusahaan Listrik Negara, accountable for the deployment of renewable energy, argued the authors.