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Indonesia Clean Energy Outlook 2020

The clean energy development in 2019 was, to some extent, in line with our analysis in the previous ICEO. Overall, our review shows that the clean energy development and investments in Indonesia remained low. However, we also observed that the appetite for rooftop solar PV was growing with government ministries, private companies, and homeowners were showing an increased interest in the technology. Biofuel consumption increased as the B20 program took off early this year. In energy efficiency, the efforts to lower final energy intensity should be focused on three sectors with the highest energy consumption, particularly the transportation, industrial, and residential sectors. In the transportation sector, a new presidential regulation on EV signaled a  strong political will in developing the new technology in the country. However, it needs more than just a regulation to jumpstart EV industry and increase the EV penetration to 20% of new vehicle sales in 2025.

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