Indonesia

Policies

  • Presidential Regulation 55/2019 on electric vehicles
    Executive
    2019
    This document aims at enabling battery-powered electric vehicles to be made and deployed in Indonesia. It includes two, three and four wheelers. It sets up incentives for local manufacturers, with minimum rates of local components, and aims at expanding the charging infrastructure. The regulation defines and details a fiscal and non-fiscal scheme of incentives for the sector, and determines the electricity supply rates to be applied.
  • Regulations 12 and 50 on the utilisation of Renewable Energy for the Provision of Power
    Executive
    2017
    Regulation 12 sets the tariffs for solar, wind, hydro, biomass, biogas, city waste to energy, and geothermal power plants. It stipulates that a renewable tariff is capped at 85% of the electricity supply costs (BPP) for the region in question, and 100% of BPP for geothermal and city waste to energy plants, provided the regional BPP is higher than the national average. If the regional BPP is lower than the national average, then the tariff is capped at 100% of the BPP, unless otherwise agreed in the case of geothermal and city waste to energy plants. The purpose of this rule is to reduce the average BPP (i.e., the cost of generation) across Indonesia.

    Regulation 50 formally replaced Regulation 12.
  • National Medium Term Development Plan 2015-2019 (RPJMN 2015-2019)
    Executive
    2015
    The most recent RPJMN specifies that the green economy is to be the foundation of Indonesia's development programme. The emphasis is to be on 'inclusive and sustainable growth, increasing value added of natural resources with the sustainable approach, increasing quality of the environment, disaster mitigation and tackling climate change'.
    Other strategies included in the plan are:


    • To create and to increase green cities development as a part of climate and disaster security through : (a) spatial planning which orientates on environment sustainability; (b) improved institution and capacity of public officer to mitigate and reduce disaster risks; (c) providing public goods and infrastructure based on green construction principles;

    • To develop the rural and remote areas, with special attention on border areas, disadvantaged regions, transmigration areas, and small islands;

    • To eradicate illegal logging, illegal fishing and illegal mining;

    • To improve governance in natural resources and to increase community participation in forest management.


    Specified targets include:


    • Reduce greenhouse gas emissions for the five priority sectors, namely forestry and peat lands, agriculture, energy and transportation, industrial and waste, so that it will meet the target of 26 % in 2019 , in line with the National Action Plan for Greenhouse Gas Emission Reduction ( RAN - GRK );

    • Increasing community resilience to the impacts of climate change on 15 vulnerable areas which are the pilot of National Adaptation Action Plan on Climate Change ( RAN -API). The Government stressed the importance of each province to set emission reduction targets within the framework of the Regional Action Plan - Greenhouse Gas Emission Reduction ( RAD - GRK ) with by issuing Governer Regulation.


    The plan also contains numerous regional-level initiatives, such as:
    Papua:


    • Accelerating the development of downstream industries of mining, oil, gas and copper;

    • Increased conservation and environmental carrying capacity for low-carbon development;

    • Development of sustainable and inclusive economic zones based on village territories of indigenous peoples, through accelerated improvement of human resource in Papua.


    Kalimantan:


    • Maintain Borneo's function as the lungs of the world, to enhance the conservation and watershed rehabilitation, critical areas, protected forests, and forest production; and developing systems for flood disasters and fires;

    • Maintaining Borneo as national depository for energy with downstream development of coal , including the development of biomass-based renewable energy and water or the sun, or in accordance with the existing natural resources in each province;

    • Development of commodity -based industries as oil palm, rubber, bauxite, iron, liquefied natural gas, zircon sand and quartz sand.


    Sumatra:


    • National energy depository , including renewable energy development;

    • Development of coal commodity downstream;

    • Industry development based on oil palm, rubber, tin, bauxite and kaolin.

  • Presidential Decree 16/2015 on the Structure of the Environment and Forestry Ministry
    Executive
    2015
    This decree revokes and declares invalid Presidential Decree 62/2013 which created Indonesia's REDD+ body. It specifies that the REDD+ body and the country's National Council on Climate Change are both to become part of the Directorate General of Climate Change in the Ministry of Forestry and Environment.
  • Decree 62/2013 Regarding a Managing Agency for the Reduction of Emission (sic) from Deforestation and Degradation of Forest and Peat lands
    Executive
    2013
    The Managing Agency will be in charge of developing a national strategy to:
    • develop a national strategy to implement REDD+ in the country
    • form and develop REDD+ safeguards
    • develop standards and methodologies to measure GHG emissions
    • co-ordinate law enforcement with regards to implementation of REDD+ programmes, projects or activities
  • Presidential Instruction 6/2013 on extension of the forest moratorium
    Executive
    2013
    This extends Presidential Instruction No. 10/2011 on Forest Moratorium (Development of REDDschemes including Indicative Moratorium maps).
  • Ministerial Regulation 216/2012 Accelerating Development of Geothermal Energy Supply (revised Ministerial Regulation 15/2010)
    Executive
    2012
    This is a revision of the Ministerial Regulation 15/2010, which is intended to accelerate the development of Indonesia's Geothermal energy.
  • Presidential Instruction 10/2011 on Forest Moratorium (Development of REDD schemes including Indicative Moratorium maps)
    Executive
    2011
    This instruction is part of Indonesia?s commitments under the agreements in the Letter of Intent signed with the Kingdom of Norway in May 2011. The Instruction is intended to facilitate Indonesia?s participation in internationally financed REDDactivities.
  • President Regulation 71/2011 on the Implementation of a National Greenhouse Gases Inventory
    Executive
    2011
    The regulation is a component of the RAN-GDK GHG emissions reductions plan. The purpose of the bill is to establish a GHG inventory administration guideline and an administration to co-ordinate that inventory. Furthermore the legislation should lead to a system to provide regular information on the level, status and trend of GHG emission change and absorption. This will include national and sub-national carbon stock as well as GHG emission reduction information.
  • Presidential Decree 61/2011, National Action Plan to reduce GHG emissions (RAN-GRK)
    Executive
    2011
    RAN-GRK is a formal follow-up of the commitments made by President Susilo Bambang Yudhoyono to reduce GHGs by 2020 at the G20 in Pittsburgh. It is a national guideline for emission reduction covering 70 programmes, to be conducted together by the Central Government, Local Governments, private sectors/business actors and civil society. It is the reference document for activities in Indonesia directly and indirectly related to reducing GHG emissions. It sets out the different sectors in which Indonesia will make emissions reductions, namely Forestry and Peat land, Agriculture, Energy and Transportation, Industry and Waste Management.

    The Provinces are expected to make their own action plans within one year, and have these formalised within a governor's decree.
  • Ministerial Regulation 15/2010 Re. 10,000 MW Crash Programme
    Executive
    2010
    This is the 2nd Stage of 10,000 MW Crash Programme, and is intended to accelerate the development of geothermal power. The regulation specifies that Indonesia should generate 3,967 MW of geothermal power by the year 2014.
  • P. 30/Menhut-II/2009 On the implementation of REDD activities
    Executive
    2009
    Sets out the regulations for the implementation of REDD+ in Indonesia, including previously unresolved questions over which land classes could be used to develop REDD+ activities.
  • Presidential regulation 70/2009 concerning Energy Conservation
    Executive
    2009
    This is the implementing legislation on energy conservation with regard to the Energy Law. It mandates the drafting and adoption of a new National Energy Conservation Master Plan called RIKEN, the Rencana Induk Konservasi Energi Nasional. This should be updated every five years, or annually if required. The current RIKEN includes the target of reducing energy intensity by 1% per year until 2025. It specifies the mandatory assignment of an energy manager, to implement energy auditing, and energy conservation programme for users of final energy of more than 6,000 tonnes of oil equivalent. In addition the regulation introduces voluntary energy efficiency standards and energy labelling.

    The regulation also seeks to develop and implement a series of incentives for improved energy management. These include tax exemption and fiscal incentives on imports of energy saving equipment and appliances, and special low interest rates on investments in energy conservation. To reduce non-compliance, the regulation seeks to provide disincentives. These include written notices to comply, public announcements of non-compliance, fines and reductions of energy supply.
  • Minister of Forestry Regulation P.68/Menhut-II/2008 on Implementation of Demonstration Activities Reducing Carbon Emissions from Deforestation and Forest Degradation
    Executive
    2008
    This regulation sets out the rules that REDDdemonstration activities should adhere to/. It is therefore fundamental enabling legislation for the development of REDDin Indonesia.
  • Presidential Instruction 2/2008 - Regulation on Energy and Water Efficiency
    Executive
    2008
    Sets out instructions to Ministers, Governors and Mayors to implement energy and water efficiency in government offices. It optimises national policy on energy and water efficiency through establishment of the National Taskforce for Energy and Water Efficiency. The main tasks are:
    • Research, plan and prepare policies, strategies and programmes for energy and water efficiency, including energy conservation programme by taking into account that a) most national energy and water are supplied with a subsidy, b) tighten the non-essential use of energy and water use by ensuring it reflects the economic price, c) ensuring the price of water and energy for industry reflects the true economic cost, d) all government offices should take steps to improve energy and water efficiency.
    • Monitoring and reporting these activities to the President.

    The instruction works towards mainstreaming climate change, by establishing that all government offices should observe energy efficiency - lighting, AC, electrical equipment, official vehicle and other buildings, and water efficiency - in all activities that use water.
  • Presidential Regulation no. 46/2008 on the National Council for Climate Change (NCCC or DNPI)
    Executive
    2008
    Establishes the NCCC to co-ordinate climate change policy-making and strengthen Indonesia's position in international forums. The Council is composed of 17 Ministers and chaired by the President. The NCCC is to be assisted by the following Working Units: Adaptation, Mitigation, Transfer-of-Technology, Funding, Post-Kyoto 2012, and Forestry and Land Use Conversion. The adaptation programme focuses on agriculture, disaster risk reduction, data dissemination and establishes an integrated development plan to improve climate-resilience.
  • Presidential Instruction 1/2006 on Biofuel Development
    Executive
    2006
    The Instruction calls on 13 Ministers, Governors and Mayors to take the necessary actions for biofuel development from supply (feedstock) through to commercialisation and consumption.

    The Instruction issues forest utilisation permits for biofuel plants in critical or abandoned forest/land. It further promotes biofuel use, and seeks to replace fossil fuels as an alternative for transportation.
  • Presidential Regulation 5/2006 concerning National Energy Policy
    Executive
    2006
    The goal of the National Energy Policy is to direct efforts to the creation of sufficiency of domestic energy supply. It aims to optimise the energy mix in Indonesia; reducing the dependency on fossil fuels and increasing the use of renewables. It set out a comprehensive series of targets:

    By 2005 the policy aimed to achieve energy elasticity of less than one (energy elasticity in this case is the ratio of between energy demand and economic growth). It sets out the creation of optimal energy mix by 2020, achieving the following proportions in the energy mix: Oil less than 20%; gas than 30%; Coal less than 33%; Biofuel more than 5%; Geothermal more than 5%; Other new energy and renewable energy, particularly biomass, nuclear, hydropower, solar power, and wind power more than 5%; liquefied coal more than 2%.