Indonesia scored 1.52 to finish 9th among all Climatescope 2014 nations. It scored highly on the Low Carbon Business and Clean Energy Value Chains, and Greenhouse Gas Management Activities parameters due to its generally effective taxbased policies. However, Indonesia lagged behind on the Clean Energy Investment parameter.
Indonesia has a tightly-controlled, highly-subsidized power sector.
In 2013, coal provided 48.5% of Indonesia’s total 196.4TWh of generation. Renewables, primarily geothermal, contributed 5%.
State-run utility Perusahaan Listrik Negara (PLN) dominates Indonesia’s power sector, and has several subsidiaries that operate as independent power producers. Non-PLN IPPs account for a very small market share in Indonesia. Geothermal power production is dominated by government-owned oil and gas company PT Pertamina.
Indonesia has a number of initiatives supporting renewable energy deployment. In 2013, the Ministry of Energy and Mineral Resources (MEMR) agreed to purchase electricity via a solar auction program, adopting transparency on the pricing structure for renewable energy power projects. Efforts are underway to improve transmission and distribution and to extend electrification to of Indonesia’s thousands of disconnected islands.