Energy Transition in Indonesia: An Economic Study, Public Policy, and Renewable Energy Potential

DOI

10.2991/978-94-6463-974-2_26How to use a DOI?

Keywords

renewable energy; energy transition; public policy; sustainable development; energy economics

Abstract

This article examines Indonesia’s energy transition by highlighting the dominance of fossil fuels, the country’s vast renewable energy potential, and the structural obstacles hindering its development. Despite the national target of achieving a 23% renewable energy mix by 2025, Indonesia remains heavily reliant on oil, coal, and natural gas. The study analyzes the causes of this dependence, identifies key challenges in renewable energy adoption, evaluates existing policies, and proposes strategies to accelerate the transition. Using a descriptive qualitative approach through literature study, the research draws on secondary data from government reports, academic journals, and research institutions. Findings show that although Indonesia possesses over 400 GW of renewable energy potential, its utilization remains low due to inadequate infrastructure, regulatory uncertainty, fossil fuel subsidies, and investment risks. The analysis demonstrates that externalities, opportunity cost, sustainable development, and endogenous growth theories are essential for understanding these challenges. The article concludes that policy reform, stronger economic instruments, and increased green investment are urgently needed to advance clean energy development.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Septia Citra Cahyani
AU  - Emy Martina
AU  - Jenny Priscilla
PY  - 2025
DA  - 2025/12/25
TI  - Energy Transition in Indonesia: An Economic Study, Public Policy, and Renewable Energy Potential
BT  - Proceedings of the 2nd International Conference of Economics, Management, Accounting, and Business Digital (ICEMAB 2025)
PB  - Atlantis Press
SP  - 179
EP  - 186
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-974-2_26
DO  - 10.2991/978-94-6463-974-2_26
ID  - Cahyani2025
ER  -