By Muhamad Rosyid Jazuli, on 25 August 2022
The transition from fossil fuel-based to renewable energy has become one of the most important global issues at least in the past two decades. In Indonesia, however, incentives for renewable energy have decreased and in contrast, ones for fossil fuels have increased (Kompas, 22/6).
The alleged increase in this unsustainable incentive is encapsulated in a report by the International Institute for Sustainable Development (IISD), titled Indonesia’s Energy Support Measures: An inventory of incentives impacting the energy transition, published this June.
During 2016-2020, the report states, that subsidies and compensation for fossil fuels in Indonesia reached 1,153 trillion Rupiah or around 65 billion Pounds. This number dwarfs incentives for other energy sources, for instance, 150 trillion Rupiah for renewable energy sources and 19 trillion Rupiah for electric vehicles and batteries.
Such gigantic spending indicates, unfortunately, that Indonesia is moving away from its commitment to building a low-carbon economy. At the Conference of the Parties (COP) 2009 and 2016, Indonesia committed to reducing greenhouse gas emissions by 26% (with its own efforts) or by 41% (if receiving international assistance) by 2030.