Primary energy demand in Indonesia is growing rapidly due to urbanisation, economic growth and population increase. Through the National Energy Policy (Kebijakan Energi Nasional), the Government of Indonesia (GoI) is committed to supplying energy to its entire population. Policies highlight the importance of diversification of energy supply, environmental sustainability and enhanced deployment of domestic energy resources.
The contribution of New and Renewable Energy (NRE) to the national energy mix is mandated to reach 23% by 2025. Indonesia’s Nationally Determined Contributions (NDC) stresses five sectors in which greenhouse gas (GHG) emissions are to be reduced with forestry and energy being of highest priority. The country’s NDC implementation strategy clearly identifies restoration of degraded land for renewable energy as key activity, that allows engaging a wide range of stakeholders including government agencies, private sector and local communities. Vast areas of degraded and underutilised land are available for restoration and biomass energy in the country, providing an opportunity to engage local communities in restoring degraded land and improving rural livelihoods, while supporting the achievement of climate and development goals, including the Sustainable Development Goals (SDGs).
This White Paper was produced by Clean Power Indonesia and Center for International Forestry Research (CIFOR) for the session at the GLF Investment Case 2019 in Luxembourg.