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Climate Change and Energy Security Post-Cancún: The Indonesia Perspective

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Governments’ Responses to Climate Change: Selected Examples From Asia Pacific

Part of the book series: SpringerBriefs in Environment, Security, Development and Peace ((ASEAN,volume 10))

Abstract

Indonesia faces a huge challenge in continuing the development of its economy while reducing its greenhouse gas (GHG) emissions at the same time. Using examples from the energy sector, which is the backbone of the country’s economy as well as one of the largest contributors of GHG emissions, this chapter examines the climate-energy nexus in Indonesia, taking into account the various relevant policies, political contexts and institutions that have influenced the climate change and energy discourses in the country. A particular focus will be given to efforts that have tried to balance actions on climate change mitigation while addressing energy security. The chapter critically reviews policy efforts to integrate climate change objectives into energy policy, and discusses policy impediments and implementation gaps that prevent the country from smoothly integrating its climate change and energy security objectives, with the development of geothermal energy in Indonesia taken as a case study.

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Notes

  1. 1.

    Kementerian PPN/BAPPENAS, “The Presidential Regulation of the Republic of Indonesia No. 61 Year 2011 on the National Action Plan for Greenhouse Gas Emissions Reduction” (October 2011), at: http://www.bappenas.go.id/get-file-server/node/11521/ and http://www.bappenas.go.id/get-file-server/node/11522/ (9 January 2013).

  2. 2.

    Kementerian Dalam Negeri (The Ministry of Home Affairs), “Instruksi Presiden Republik Indonesia No. 10 Tahun 2011 tentang Penundaan Pemberian Izin Baru dan Penyempurnaan Tata Kelola Hutan Alam Primer dan Lahan Gambut” (Instruction by The President of the Republic of Indonesia No. 10 Year 2011 regarding Suspension of Granting New Licenses and Improvement of Natural Primary Forest and Peatland Governance) (19 September 2011), at: http://www.depdagri.go.id/media/documents/2011/09/19/i/n/inpres_no.10-2011.pdf and for the English translation, at: http://www.daemeter.org/wp-content/files/INPRES-10_2011__EN.pdf (9 January 2013).

  3. 3.

    In May 2010, the governments of Indonesia and Norway signed a letter of intent (LoI) regarding cooperation on reducing greenhouse gas emissions from deforestation and forest degradation. Based on this LoI, the Indonesian government agrees to issue a policy on forest and peatland conversion moratorium. See CIFOR, “Letter of Intent between the Government of the Kingdom of Norway and the Government of the Republic of Indonesia on ‘Cooperation on Reducing Greenhouse Gas Emissions from Deforestation and Forest Degradation’” (May 2010), at: http://www.forestsclimatechange.org/fileadmin/photos/Norway-Indonesia-LoI.pdf (9 January 2013).

  4. 4.

    MEMR, “Peraturan Presiden Republik Indonesia No. 5 Tahun 2006 tentang Kebijakan Energi Nasional” (The Presidential Regulation of the Republic of Indonesia No. 5 of 2006 on National Energy Policy) (2008), at: http://prokum.esdm.go.id/perpres/2006/perpres_05_2006.pdf and for the English translation, at: http://faolex.fao.org/docs/pdf/ins64284.pdf (9 January 2013).

  5. 5.

    MEMR, “Undang-Undang Republik Indonesia No. 30 Tahun 2007 tentang Energi” (Law of the Republic of Indonesia No. 30 Year 2007 on Energy) (2008), at: http://prokum.esdm.go.id/uu/2007/uu-30-2007-en.pdf (9 January 2013).

  6. 6.

    Dewan Nasional Perubahan Iklim (DNPI) was established by the President with the Presidential Regulation No. 46 of 2008. See MEMR, “Peraturan Presiden Republik Indonesia No. 46 Tahun 2008 tentang Dewan Nasional Perubahan Iklim” (The Presidential Regulation of the Republic of Indonesia No. 46 of 2008 on National Council on Climate Change) (in Bahasa Indonesia) (2008), at: http://prokum.esdm.go.id/perpres/2008/Perpres-46-2008.pdf (9 January 2013).

  7. 7.

    Dewan Energi Nasional (DEN) was established by the President with the Presidential Regulation No. 26 of 2008. See MEMR, “Peraturan Presiden Republik Indonesia No. 26 Tahun 2008 tentang Pembentukan Dewan Energi Nasional” (The Presidential Regulation of the Republic of Indonesia No. 26 of 2008 on The Establishment of National Energy Council) (in Bahasa Indonesia) (2008), at: http://prokum.esdm.go.id/perpres/2008/Perpres-26-2008.pdf (9 January 2013).

  8. 8.

    The Indonesia Climate Change Trust Fund (ICCTF) was established by BAPPENAS in 2009. See Kementerian PPN/BAPPENAS, “Persiapan pembentukan Trustee ICCTF” (The Preparation of the Establishment of the ICCTF Trustee) (October 2009), at: http://bappenas.go.id/node/116/2417/persiapan-pembentukan-trustee-icctf—(9 January 2013).

  9. 9.

    The REDD+ (Reducing Emissions from Deforestation and Forest Degradation-Plus) Task Force was established by the President Decree No. 19 of 2010.

  10. 10.

    The Secretariat of Rencana Aksi Nasional Penurunan Emisi Gas Rumah Kaca (RAN-GRK) was established to facilitate the implementation of RAN-GRK as stipulated in the Presidential Regulation No. 61 of 2011.

  11. 11.

    The Directorate General of New, Renewable Energy, and Energy Conservation (DG-EBTKE) was established as part of the mandate of the Presidential Regulation No. 24 of 2010.

  12. 12.

    In contrast to democratic states, as analysed by Desai et al. (2009: 106), political liberalisation is negatively related in authoritarian states.

  13. 13.

    Ardiansyah, Fitrian, “Bearing the Consequences of Indonesia’s Fuel Subsidy”, in: East Asia Forum (4 May 2012), at: http://www.eastasiaforum.org/2012/05/04/26135/ (9 January 2013).

  14. 14.

    This chapter benefits greatly from a three-year study of energy governance and its implications for climate change in Indonesia conducted by Gunningham and Drahos, the second and third authors. The purpose of the study was to understand how policy and regulatory frameworks established at the national level actually steer energy policy, and how energy policy is coordinated internationally.

  15. 15.

    DBS Group Research, “Economics Indonesia: 2011 Budget Preview” (1 November 2010), at: https://www.dbsvresearch.com/research%5Cdb%5Cresearch.nsf/(vwAllDocs)/67A56A7116FF77AB482577CE003053AD/%24FILE/id_2010Nov1.pdf (16 March 2011).

  16. 16.

    In 2004, oil production averaged 1,100 thousand barrels per day (tbd) while consumption hit 1,200 tbd (Sa’ad 2009: 4391–4392).

  17. 17.

    In 2011, more than 30 new oil and gas contracts were entered into in Indonesia (PwC 2012: 5). In 2013, according to the Energy and Mineral Resources Minister, Indonesia expects an increase in oil and gas investments by as many as 274 work plans, with a value of US $26.2 billion. See, Azwar, Amahl S., “Indonesia Expects an Increase in Oil and Gas Investment for 2013”, in: The Jakarta Post (8 January 2013), at: http://www.thejakartapost.com/news/2013/01/08/indonesia-expects-increase-oil-and-gas-investment-2013.html (9 January 2013).

  18. 18.

    While some scholars believe that there is a causal relationship between energy consumption and economic growth (Asafu-Adjaye 2000), others argue that there is no such causality between the two (Jafari et al. 2012).

  19. 19.

    With the exception of 1997, when Indonesia was hit by the Asian financial crisis, primary energy consumption has been increasing steadily and rapidly. See ABB, “Indonesia Energy Efficiency Report” (10 January 2011), at: http://www05.abb.com/global/scot/scot316.nsf/veritydisplay/1a65dd16a3c538acc125786400514251/%24file/indonesia.pdf (9 January 2013).

  20. 20.

    MEMR, “25% of Indonesian Have No Access to Energy” (21 December 2012), at: http://www.esdm.go.id/news-archives/general/49-general/6123-25-of-indonesian-have-no-access-to-energy.html (9 January 2013).

  21. 21.

    Noviani, Ana, “Subsidi Energi: Realisasi Belanja Membengkak Dari Pagu APBN-P 2012” (Energy Subsidy: A Significant Increase from the Government Adjusted Budget), in: Bisnis (3 January 2012), at: http://www.bisnis.com/articles/subsidi-energi-realisasi-belanja-membengkak-dari-pagu-apbn-p-2012 (9 January 2013).

  22. 22.

    The original budget (before adjusted) for energy subsidies in 2012 was Rp168.5 trillion (US $17.3 billion), or approximately 17 % of the government’s total original budget. See Ministry of Finance, “Budget Statistics 2006–2012”, in: Indonesian Energy Electricity Sheet (2012), at: http://energy-indonesia.com/08data/BudgetStatistics2006-2012.pdf (1 December 2012).

  23. 23.

    WCA, “Coal Market and Transportation” (2012), at: http://www.worldcoal.org/coal/market-amp-transportation/ (9 January 2013).

  24. 24.

    Tanquintic-Misa, Esther, “Indonesia to Impose Duties on Coal Exports, Face up to $11B in Export Earning Losses”, in: International Business Times (6 June 2012), at: http://au.ibtimes.com/articles/348998/20120606/indonesia-coal-exports.htm#.UO6bmm_Zbzk (9 January 2013).

  25. 25.

    “Peraturan Presiden Republik Indonesia No. 71 Tahun 2006 tentang Penugasan kepada PT Perusahaan Listrik Negara [PLN] untuk Melakukan Percepatan Pembangunan Pembangkit Tenaga Listrik yang Menggunakan Batubara” (Regulation of the President of the Republic of Indonesia Number 71 Year 2006 Concerning Assignment to Pt. Perusahaan Listrik Negara (Persero) to Accelerate the Development of Electric Power Generation Using Coal), at: http://www.presidenri.go.id/DokumenUU.php/239.pdf (9 January 2013) and for the English translation, at: http://repit.files.wordpress.com/2011/11/perpres-71-tahun-2006-english-version.pdf (25 June 2013).

  26. 26.

    “Thematic Map: Natural Gas—Exports—World”, in: Index Mundi (1 January 2012), at: http://www.indexmundi.com/map/?v=138 (9 January 2013).

  27. 27.

    EIA, “Indonesia Energy Profile: Reorienting Away from Exports to Serve Domestic Consumption—Analysis”, in: EurasiaReview (10 January 2013), at: http://www.eurasiareview.com/10012013-indonesia-energy-profile-reorienting-away-from-exports-to-serve-domestic-consumption-analysis/#.UO6bqW_Zbzk (10 January 2013).

  28. 28.

    Ibid.

  29. 29.

    Presiden Republik Indonesia, “Peraturan Presiden Republik Indonesia No. 4 Tahun 2010 tentang Penugasan kepada PT Perusahaan Listrik Negara [PLN] untuk Melakukan Percepatan Pembangunan Pembangkit Tenaga Listrik yang Menggunakan Energi Terbarukan, Batubara dan GAs” (The Presidential Regulation of the Republic of Indonesia No. 4 of 2010 on The Tasks Given to PLN to Accelerate the Development of Power Plants based on Renewable Energy, Coals and Gas) (2011), at: http://www.presidenri.go.id/DokumenUU.php/408.pdf (9 January 2013).

  30. 30.

    For further discussion on coal and its negative environmental impacts, see Ardiansyah et al. (2012: 97–98).

  31. 31.

    Kirkland, Joel; Climatewire, “Natural Gas Could Serve as ‘Bridge’ Fuel to Low-carbon Future”, in: Scientific American (25 June 2010), at: http://www.scientificamerican.com/article.cfm?id=natural-gas-could-serve-as-bridge-fuel-to-low-carbon-future&page=3 (9 January 2013).

  32. 32.

    The second-phase crash programme, to be realised during the period 2009–2018, was introduced to push for the development of coal-fired power plants, gas-fired power plants and geothermal power plants at a projected cost of US $21.3 billion. See Mansur, S., “Comprehensive Study on: Crash Program Progress and National Electricity Business Opportunity 2008–2015 (Featuring Exploration & Exploitation Renewable Energy Sources)”, in: Media Data Riset (March 2008), at: http://www.scribd.com/doc/19295066/CRASH-PROGRAM-PROGRESS-AND-NATIONAL-ELECTRICITYpdf (10 December 2010).

  33. 33.

    Alfian, “Indonesia to Construct 93 Power Plants in 2nd Project”, in: The Jakarta Post (30 January 2010), at: http://www.thejakartapost.com/news/2010/01/30/indonesia-construct-93-power-plants-2nd-project.html (9 January 2013).

  34. 34.

    The percentage of GHG emissions from natural gas would be higher if one accounts for the impact of leakage (including and especially of methane) during the extraction process, and particularly from the extraction of shale gas. See Howarth et al. (2011: 660, 683–685).

  35. 35.

    The International Energy Agency (IEA) has argued that the tripling of output by 2035 from unconventional gas sources such as shale gas could end support for renewables. See Harvey, Fiona, “‘Golden Age of Gas’ Threatens Renewable Energy, IEA Warns”, in: The Guardian (29 May 2012), at: http://www.guardian.co.uk/environment/2012/may/29/gas-boom-renewables-agency-warns (9 January 2013).

  36. 36.

    According to OECD/IEA (2012: 11), production of unconventional gas, primarily shale gas, is predicted to more than triple to 1.6 trillion cubic metres in 2035. Large increases are expected to occur in the United States, Russia, China, Australia, India, Canada and Indonesia (OECD/IEA 2012: 11).

  37. 37.

    Winoto, Ashary Teguh; Marliska, Elif Doka; Prasetyo, M. Himawan; Simangunsong, Sahat, “Rural Electrification in Indonesia: Target and Development”, Country Report 2012, in: Energy Indonesia, at: http://energy-indonesia.com/03dge/05chiho.pdf (9 January 2013).

  38. 38.

    At the 2nd Congress of the East Asian Association of Environmental and Resource Economics (EAAERE), in Bandung, Indonesia, Marpaung et al. (2012: 1, 5–6) presented an Asian-Pacific Integrated Model (AIM)/End-use model developed to examine the energy security implications of a renewable portfolio standard (RPS) in Indonesia. In their model, three levels of RPS are considered—15, 25 and 35 percent—within the planning horizon 2005–2035.

  39. 39.

    As of 2010, Indonesia’s energy mix consisted of 49.7 percent oil, 20.1 percent gas, 24.5 percent coal and 5.7 percent renewables. See “Indonesia’s Energy Security and Geothermal Development”, in: Indonesia Soken (July 2012), at: http://www.indonesiasoken.com/pdf/FREE_046_20120730_energypercent20report.pdf (9 January 2013). According to the Presidential Regulation No. 5 of 2006, new and renewable energy’s share is expected to be 17 percent by 2025. The MEMR has expanded this government target and set a 25 percent share of new and renewable energy in the 2025 energy mix, known as ‘Energy Vision 25/25’. See Azahari, Hasrul Laksamana, “New and Renewable Energy Policies”, in: Energy Indonesia (18 July 2012), at: http://energy-indonesia.com/03dge/03.pdf (9 January 2013).

  40. 40.

    MEMR, “25 percent of Indonesian Have No Access to Energy” (21 December 2012), at: http://www.esdm.go.id/news-archives/general/49-general/6123-25-of-indonesian-have-no-access-to-energy.html (9 January 2013).

  41. 41.

    However, the President has announced plans to become the world’s leading geothermal nation, with 44 plants to be built by 2014 with a capacity of 4,000 MW and capacity rising to 9,000 MW by 2025. See Allard, Tom, “Indonesia Goes to Ground for Energy”, in: Sydney Morning Herald (1 May 2010), at: http://www.smh.com.au/environment/energy-smart/indonesia-goes-to-ground-for-energy-20100430-tzbv.html (16 March 2011).

  42. 42.

    Given the effect of shale gas on gas prices as well as the world and Indonesia, the role and contribution of renewable energy in Indonesia may change. This remains the subject of extensive research.

  43. 43.

    MEMR, “Undang-Undang Republik Indonesia No. 27 Tahun 2003 tentang Panas Bumi” (Law of the Republic of Indonesia No. 27 Year 2003 Concerning Geothermal), at: http://prokum.esdm.go.id/uu/2003/uu-27-2003.pdf (9 January 2013) and for the English translation, at: http://repit.files.wordpress.com/2011/09/uu-no-27-2003-english-version.pdf (25 June 2013).

  44. 44.

    See FAOLEX, “Indonesia: Government Regulation No. 59/2007 Concerning Geothermal Business Activity” (5 November 2007), at: http://faolex.fao.org/cgi-bin/faolex.exe?rec_id=070870%26database=faolex%26search_type=link%26table=result%26lang=eng%26format_name=%40ERALL (15 July 2013).

  45. 45.

    This regulation was subsequently replaced by MEMR Regulation No. 5 of 2009.

  46. 46.

    MEMR, “Peraturan Menteri Energi Dan Sumber Daya Mineral Nomor: 05 Tahun 2009” (in Bahasa Indonesia), at: http://www.djlpe.esdm.go.id/modules/_website/files/37/File/permen-esdm-05-2009(1).pdf (15 July 2013).

  47. 47.

    MEMR, “Peraturan Menteri Energi Dan Sumber Daya Mineral Nomor 07 Tahun 2010” (in Bahasa Indonesia), at: http://prokum.esdm.go.id/permen/2010/Permen%20ESDM%2007%202010.pdf (15 July 2013).

  48. 48.

    MEMR, “Peraturan Menteri Energi Dan Sumber Daya Mineral Republik Indonesia Nomor: 22 Tahun 2012” (in Bahasa Indonesia), at: http://prokum.esdm.go.id/permen/2012/Permen%20ESDM%2022%202012.pdf (15 July 2013).

  49. 49.

    Aiming to further encourage investment in geothermal energy, the government started obliging state power producer PLN to pay a tariff on electricity generated from geothermal facilities at US $0.11 to nearly US $0.20 per kilowatt hour (kWh) depending upon the region where the resource was located. See Gipe, Paul, “Indonesia Launches “Crash” Renewables Program: Boosts Geothermal FITs”, in: Renewable Energy (20 July 2012), at: http://www.renewableenergyworld.com/rea/news/article/2012/07/indonesia-launches-crash-renewables-program-boosts-geothermal-fits (9 January 2013).

  50. 50.

    Ibid.

  51. 51.

    MEMR, “Geothermal Feed in Tariff will Immediately be Signed” (5 July 2012), at: http://www.esdm.go.id/index-en/83-energy/5828-geothermal-feed-in-tariff-will-immediately-be-signed.html (9 January 2013).

  52. 52.

    These CO2 emissions savings are calculated by comparing the estimated amount of CO2 emissions coming from geothermal power plants to that from coal-fired power plants.

  53. 53.

    Azahari, Hasrul L., “Indonesia’s Feed-in Tariff for Renewable Energy”, in: Energy Indonesia (14 May 2012), at: http://energy-indonesia.com/03dge/Hasrulpercent20L.%20Azahari.pdf (9 January 2013).

  54. 54.

    Ibid.

  55. 55.

    Ibid.

  56. 56.

    PERTAMINA is Indonesia’s state-owned oil and gas company. For the company’s full profile, see “Company Profile”, at: http://www.pertamina.com/index.php/home/read/company_profile (12 August 2011).

  57. 57.

    Ardiansyah, Fitrian, “Bearing the Consequences of Indonesia’s Fuel Subsidy”, in: East Asia Forum (4 May 2012), at: http://www.eastasiaforum.org/2012/05/04/26135/ (9 January 2013).

  58. 58.

    Ibid.

  59. 59.

    Azwar, Amahl S., “Regulator Works to Keep Fuel Quota on Track”, in: The Jakarta Post (14 December 2012), at: http://www.thejakartapost.com/news/2012/12/14/regulator-works-keep-fuel-quota-track.html (9 January 2013).

  60. 60.

    Presiden Republik Indonesia, “Peraturan Pemerintah Republik Indonesia Nomor 70 Tahun 2009” (in Bahasa Indonesia), at: http://www.djlpe.esdm.go.id/modules/_website/files/36/File/PP%2070%202009.pdf (15 July 2013).

  61. 61.

    Compare, for example, the role of Energy Services Companies (ESCOs) in OECD countries, which provide structures that enable the industry to invest in energy efficiency without capital expenditure and are underpinned by banks.

  62. 62.

    Wilcox, Jeremy, “Indonesia’s Energy Transit: Struggle to Realize Renewable Potential”, in: Renewable Energy (14 September 2012), at: http://www.renewableenergyworld.com/rea/news/article/2012/09/indonesias-energy-transit (9 January 2013).

  63. 63.

    Differ Group, “The Indonesian Electricity System—A Brief Overview” (6 February 2012), at: http://www.differgroup.com/Portals/53/images/Indonesia_overall_FINAL.pdf (9 January 2013).

  64. 64.

    Ibid.

  65. 65.

    Ibid.

  66. 66.

    Lontoh, Sonita, “A Smart Grid Can Help Sustain Indonesia’s Growth”, in: The Jakarta Globe (24 December 2012), at: http://www.thejakartaglobe.com/biscolumns/a-smart-grid-can-help-sustain-indonesias-growth/563357 (9 January 2013).

  67. 67.

    Ibid.

  68. 68.

    Hanan Nugroho, “Energy and Climate Change Management in Indonesia”, in: The Jakarta Post (6 December 2009), at: http://www.thejakartapost.com/news/2009/06/12/energy-and-climate-change-management-indonesia.html (16 March 2011).

  69. 69.

    Ibid.

  70. 70.

    World Bank Indonesia, “New Financing to Help Meet Growing Electricity Demands of Indonesian Economy” (8 July 2010), at: http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/EASTASIAPACIFICEXT/INDONESIAEXTN/0,,contentMDK:22641183%7EmenuPK:224605%7EpagePK:2865066%7EpiPK:2865079%7EtheSitePK:226309,00.html (16 March 2011).

  71. 71.

    Mansur, S., “Comprehensive Study on: Crash Program Progress and National Electricity Business Opportunity 2008-2015 (Featuring Exploration & Exploitation Renewable Energy Sources)”, in: Media Data Riset (March 2008), at: http://www.scribd.com/doc/19295066/CRASH-PROGRAM-PROGRESS-AND-NATIONAL-ELECTRICITYpdf (10 December 2010).

  72. 72.

    The government’s target and projected installed capacities were calculated based on the list of power plants under development as part of the Indonesian government’s second phase crash programme of 10,000 MW.

  73. 73.

    Institut Teknologi Bandung, “Background”, Magister Program in Geothermal Technology (2013), at: http://geothermal.itb.ac.id/background (9 January 2013).

  74. 74.

    Indonesia—and, in this case, PERTAMINA and PLN—has faced litigation regarding geothermal energy development. In a famous case against Karaha Bodas company, the International Arbitration Institute in Switzerland ruled in favour of Karaha Bodas. See BIICL, “Case Note: Karaha Bodas and Himpurna Arbitrations” (2008), at: http://www.biicl.org/files/3931_2000_himpurna_and_karaha_bodas_arbitrations.pdf (9 January 2013).

  75. 75.

    With the provincial governments issuing tenders for geothermal working areas, the central government lacks the proper authority to issue Power Purchase Agreements (PPAs).

  76. 76.

    For example, some regions are landlocked and have no access to ports. In such cases, where adjacent regions control the nearest port, a toll fee that may be so large as to make any commercial initiative unviable is usually demanded.

  77. 77.

    See the various options floated in the Green Paper (Ministry of Finance 2009).

  78. 78.

    Shibaki and Beck estimated the geothermal power direct capital costs (installed capacity) to be US $1.9 million/MW (Shibaki/Beck 2003: 10).

  79. 79.

    Reuters, “Indonesia Readies $1b ‘Green’ Fund to Spur Clean Investment, Reduce Emission”, in: The Jakarta Globe (27 January 2010), at: http://www.thejakartaglobe.com/home/indonesia-plans-1-billion-green-investment-fund/354921 (9 January 2013).

  80. 80.

    Putri, Adhityani, “Seeking an Affordable Geothermal Energy Price”, in: The Jakarta Post (27 July 2012), at: http://www.thejakartapost.com/news/2012/07/27/seeking-affordable-geothermal-energy-price.html (9 January 2013).

  81. 81.

    “Follow the Money: $400 Million Indonesian Commitment has Players Scurrying”, in: Geothermal Digest (29 March 2010), at: http://geothermaldigest.net/blog/2010/03/29/follow-the-money-400-million-indonesia-commitment-has-players-scurrying (16 March 2011).

  82. 82.

    Padden, Brian, “World Bank Invests $400 Million in Indonesian Geothermal Energy”, in: Voice of America (23 March 2010), at: http://www.voanews.com/english/news/World-Bank-Invests-400-Million-in-Indonesian-Geothermal-Energy--88906002.html (16 March 2011).

  83. 83.

    The Asian Development Bank (ADB) financed the plant as one of 12 subprojects under its Renewable Energy Development Sector (REDS) project, aiming to increase Lahendong’s electricity output to 158 gigawatts hour annually into PLN’s Minhasa system of North Sulawesi. See World Bank, “ID-PCF-Indonesia Lahendong Geothermal Project” (25 August 2009), at: http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=64290415&theSitePK=40941&menuPK=228424&Projectid=P096677 (16 March 2011).

  84. 84.

    Japan International Cooperation Agency’s (JICA) contribution of ¥5,866 million (approximately US $70 million) beginning in March 2004 involved building a new plant with a 20 MW capacity that was due for completion in 2012. See JICA, “Major Projects: Lahendong Geothermal Power Plant Project” (2004), at: http://www.jica.go.jp/indonesia/english/activities/activity13.html (16 March 2011).

  85. 85.

    If we use the aforementioned figure of US $800 million for a 333 MW power plant as a guide to the cost of developing geothermal energy in Indonesia, it is reasonably clear that international aid agencies alone will not be able to do much in helping Indonesia shift its energy mix to geothermal. Also, keeping in mind that the global financial crisis is becoming a lingering phenomenon that is continuing to dog most Organisation for Economic Co-operation and Development (OECD) countries, and probably Indonesia as well, it becomes apparent that Indonesia cannot expect much more assistance with its geothermal agenda from international aid sources.

  86. 86.

    “Indonesia: $ 5 Billion in Geothermal Deals”, in: United Press International (28 April 2010), at: http://www.upi.com/Science_News/Resource-Wars/2010/04/28/Indonesia-5-billion-in-geothermal-deals/UPI-75251272464182/ (16 March 2011).

  87. 87.

    “Geothermal Power Would Not Devastate Forest: Official”, in: The Jakarta Post (31 March 2011), at: http://www.thejakartapost.com/news/2011/03/31/geothermal-power-would-not-devastate-forests-official.html (16 March 2011).

  88. 88.

    In the LoI between the Government of Indonesia and the Government of Norway, the two governments agree that taking appropriate measures to address land conflicts is an important part of reducing emissions. See CIFOR, “Letter of Intent between the Government of the Kingdom of Norway and the Government of the Republic of Indonesia on ‘Cooperation on Reducing Greenhouse Gas Emissions from Deforestation and Forest Degradation’” (May 2010), at: http://www.forestsclimatechange.org/fileadmin/photos/Norway-Indonesia-LoI.pdf (9 January 2013).

  89. 89.

    ESDM, “Kementerian Energi Dan Sumber Daya Mineral Republik Indonesia Siaran Pers Nomor: 79/Humas KESDM/2011” (in Bahasa Indonesia), at: http://www.esdm.go.id/siaran-pers/55-siaran-pers/5282-penandatanganan-mou-kementerian-esdm-dengan-kementerian-kehutanan.html (15 July 2013).

  90. 90.

    See “Law of the Republic of Indonesia Number 41 of 1999 Regarding Forestry”, at: http://www.theredddesk.org/sites/default/files/uu41_99_en.pdf (15 July 2013).

Abbreviations

ADB:

Asian Development Bank

AIM:

Asian-Pacific Integrated Model

ANU:

Australian National University

APBN-P:

Anggaran Pendapatan dan Belanja Negara–Perubahan (The Revised Government Budget and Expenditure)

APEC:

Asia–Pacific Economic Cooperation

BAP:

Bali Action Plan

BAPPENAS:

Badan Perencanaan Pembangunan Nasional (National Development Planning Agency)

BAU:

‘Business as usual’

BIICL:

British Institute of International and Comparative Law

CARR:

Centre for the Analysis of Risk and Regulation

CIFOR:

Center for International Forestry Research

CO2 :

Carbon dioxide

CO2e:

CO2 equivalent

COP:

Conference of the Parties

CTF:

Clean Technology Fund

DEN:

Dewan Energy Nasional (National Energy Council)

DG-EBTKE:

Directorate General of New, Renewable Energy, and Energy Conservation

DNPI:

Dewan Nasional Perubahan Iklim Indonesia (National Council on Climate Change)

EAAERE:

East Asian Association of Environmental and Resource Economics

EIA:

U.S. Energy Information Administration

ESCO:

Energy Services Company

ESDM:

Kementerian Energi dan Sumber daya Mineral (Ministry of Energy and Mineral Resources, Republic of Indonesia)

FAO:

Food and Agriculture Organization of the United Nations

FAOLEX:

Legislative database of FAO Legal Office

FIT:

Feed-in-tariff

GHG:

Greenhouse gas

GW:

Gigawatt

ICCTF:

Indonesia Climate Change Trust Fund

IEA:

International Energy Agency

IFCA:

Indonesia Forest Climate Alliance

IGIF:

Indonesia Green Investment Fund

JICA:

Japan International Cooperation Agency

kW:

Kilowatt

kWh:

Kilowatt hour

LoI:

Letter of intent

MEMR:

Ministry of Energy and Mineral Resources

MoU:

Memorandum of Understanding

Mt:

Million tonnes

MW:

Megawatt

MWe:

Megawatts-electrical

NTS:

Non-traditional security

OECD:

Organisation for Economic Co-operation and Development

OHS:

Occupational health and safety

PERTAMINA:

Perusahaan Tambang dan Minyak Negara (state-owned oil and gas company)

PLN:

Perusahaan Listrik Negara

PPN:

Perencanaan Pembangunan Nasional (National Development Planning)

PPP:

Public private partnership

PPA:

Power purchase agreements

PPIAF:

Public-Private Infrastructure Advisory Facility

PwC:

PricewaterhouseCoopers

RAN-GRK:

Rencana Aksi Nasional Penurunan Emisi Gas Rumah Kaca: (National Action Plan on GHG Emissions Reduction)

REDD+:

Reducing Emissions from Deforestation and Forest Degradation-Plus

REDS:

Renewable Energy Development Sector

RegNet:

Regulatory institutions network

REPP:

Renewable Energy Policy Project

RPS:

Renewable portfolio standard

RSPO:

Roundtable on Sustainable Palm Oil

SME:

Small and medium enterprise

Tbd:

Thousand barrels per day

UNFCCC:

United Nations Framework Convention on Climate Change

WCA:

World Coal Association

WLPGA:

World Liquid Petroleum Gas Association

WWF:

World Wide Fund for Nature

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Author information

Authors and Affiliations

  1. WEH Stanner Room #1.38, Crawford School of Public Policy, The Australian National University (ANU), 132 Lennox Cross, Canberra, ACT 0200, Australia

    Fitrian Ardiansyah

  2. Climate and Environmental Governance Network, National Research Centre for Occupational Health and Safety (OHS) Regulation, RegNet, Research School of Pacific and Asian Studies, and Fenner School of Environment and Society, The Australian National University (ANU), Canberra, ACT 0200, Australia

    Neil Gunningham

  3. Centre for Governance of Knowledge and Development, RegNet, Research School of Pacific and Asian Studies, The Australian National University (ANU), Canberra, ACT 0200, Australia

    Peter Drahos

Authors
  1. Fitrian Ardiansyah
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  2. Neil Gunningham
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  3. Peter Drahos
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Correspondence to Fitrian Ardiansyah .

Editor information

Editors and Affiliations

  1. National University of Singapore Energy Studies Institute, Singapore, Singapore

    Nur Azha Putra

  2. Energy Studies Institute, National University of Singapore, Singapore, Singapore

    Eulalia Han

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Ardiansyah, F., Gunningham, N., Drahos, P. (2014). Climate Change and Energy Security Post-Cancún: The Indonesia Perspective. In: Azha Putra, N., Han, E. (eds) Governments’ Responses to Climate Change: Selected Examples From Asia Pacific. SpringerBriefs in Environment, Security, Development and Peace(), vol 10. Springer, Singapore. https://doi.org/10.1007/978-981-4451-12-3_4

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