Indonesia’s Energy Transition with a Focus on Renewable Energy Policy Challenges and Strategies

Abstract

The energy transition in Indonesia represents a strategic agenda to achieve sustainable development while fulfilling global commitments to reduce carbon emissions. The Government of Indonesia has set ambitious targets in the National Energy General Plan (RUEN), aiming to achieve 23% renewable energy in the national energy mix and increasing to 31% by 2050. This effort is supported by several key policies, including Law Number 30 of 2007 on Energy, Presidential Regulation Number 22 of 2017 on RUEN, and Presidential Regulation Number 112 of 2022 on accelerating renewable energy development. However, the actual share of renewable energy in the national mix reached only around 12–15% by 2023, indicating a significant gap compared to the targets. The main challenges include limited infrastructure, regulatory uncertainty, financing constraints, and regional disparities. Therefore, accelerating strategies such as simplifying licensing, providing fiscal incentives, strengthening human resource capacity, and enhancing cross-sector collaboration are essential to achieve the national energy transition effectively and sustainably.