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Energy transition, renewable energy, coal, special interests, Indonesia, political economy
Abstract:
The development of Indonesia's energy system is characterized by slow deployment of solar and wind energy, ongoing coal power expansion and plans to further increase fossil capacities. We review the political economy factors that hinder a clean energy transition in Indonesia. We show that the actors who are most positive to decarbonization have limited influence on Indonesia's energy policies, whereas for the actors with the greatest influence, other policy objectives are more important. Even though renewable energy sources can support key policy objectives such as economic development and energy security, fossil energy better serves the demand of special interest groups. We argue that an energy transition in Indonesia will hence only be politically feasible if it boosts the profits or political power of influential actors or if a sufficient number of Indonesian actors can be convinced that renewables perform significantly better in terms of economic development and energy security than fossil fuels. We identify a range of actions to advance renewable power that might be feasible under these political constraints.
