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10 - Decarbonisation Strategies and Economic Opportunities in Indonesia

from Example Economies

Published online by Cambridge University Press:  08 October 2021

By
Utjok W. R. Siagian  and
Retno Gumilang Dewi
Edited by
Kenneth G. H. Baldwin ,
Mark Howden ,
Michael H. Smith ,
Karen Hussey  and
Peter J. Dawson
Kenneth G. H. Baldwin
Affiliation:
Australian National University, Canberra
Mark Howden
Affiliation:
Australian National University, Canberra
Michael H. Smith
Affiliation:
Australian National University, Canberra
Karen Hussey
Affiliation:
University of Queensland
Peter J. Dawson
Affiliation:
P. J. Dawson & Associates
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Summary

Indonesia is a major source of greenhouse gas (GHG) emissions but also vulnerable to the effects of climate change. Most emisisons come from land-use change and energy. Indonesia's challenge is to decarbonise its economy while its population increases and its economy expands, with energy demand set to increase by 300% from 2010 levels by 2050. The main strategies are energy efficiency, electrification of energy and deep decarbonisation of the power sector, which is dominated by coal. Indonesia has abundant potential for renewable energy including hydro, solar, wind, geothermal and bioenergy. The Indonesian Government has set a target of 31% renewables by 2050. GHG emissions are estimated to be reduced by 50% by 2050. Transport emissions are to be reduced by investment in low-carbon mass transport, such as trains, and fuel switching to gas, biofuels and renewables. The implications of climate change are not yet fully internalised in Indonesian policy and planning. The investment required is large but manageable – around 1.3% of GDP in 2020, falling to 0.7% of GDP in 2050.

Keywords

biofuelsgeothermaldecarbonisationbiomassnationally determined contributionland use change
Type
Chapter
Information
Transitioning to a Prosperous, Resilient and Carbon-Free Economy
A Guide for Decision-Makers
 , pp. 237 - 268
Publisher: Cambridge University Press
Print publication year: 2021

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