RECOVERY WITHOUT SUSTAINABILITY
Indonesia’s support for the use of fossil fuels is reflected by the allocated funds, reaching about 8 per cent of the total National Economic Recovery budget.
The economic recovery programme has 15 strategic measures to support the energy sector. Most of those measures are likely to benefit the fossil fuels industry, instead of the new and renewable energy industry.
The most significant funding allocated to the energy sector, 95.3 trillion rupiah (US$6.4 billion), has been given to state-owned enterprises linked to fossil fuel energy, including oil and gas firm Pertamina, power firm PLN, airline company Garuda Indonesia, and train operator KAI, to support their businesses.
In addition, 13.1 trillion rupiah is disbursed to subsidise electricity for poor households, predominantly generated from burning coal.
In 2020, the Indonesian Government also continued the yearly subsidies of 97.3 trillion rupiah for different types of fossil energy, such as electricity, liquefied petroleum gas (LPG) and gasoline.
In contrast, the National Economic Recovery programme only specified a subsidy for one type of renewable energy, biodiesel.
Meanwhile, support for other types of new and renewable energy is mentioned, but without details on the allocation of funds or programmes. For example, the recovery programme says it supports incentives for the installation of rooftop solar power panels for private customers. However, the implementation of this support is unclear.