Advertisement

An Environmental Perspective on Energy Development in Indonesia

  • Fitrian Ardiansyah
  • Neil Gunningham
  • Peter Drahos
Chapter
Part of the SpringerBriefs in Environment, Security, Development and Peace book series (BRIEFSSECUR, volume 1)

Abstract

Indonesia faces an energy trilemma on the energy security, climate change goals and energy poverty fronts. Policies that focus exclusively on one prong of the trilemma may lead to unacceptable consequences in the others. Conceiving the predicament as a trilemma will encourage a more unified approach to its problem solving. Successful management will require a search for policy complementarities—the likeliest source of which may be the renewable energy sector—that allow the country to move forward on all three fronts. A reform of its bureaucracy to address implementation gaps in its energy policy will also be needed. The reduction in transaction costs associated with the implementation of Indonesia’s energy policy could be used as a broad criterion when considering these necessary changes.

Keywords

Energy security Energy poverty Renewable energy Biofuels Climate change Environmental impacts Deforestation 

Abbreviations

ADB

Asian Development Bank

ANU

Australian National University

APEC

Asia–Pacific Economic Cooperation

BAPPENAS

Badan Perencanaan Pembangunan Nasional (National Development Planning Agency)

CARR

Centre for the Analysis of Risk and Regulation

CIA

Central Intelligence Agency

CO2

Carbon dioxide

DEN

Dewan Energy Nasional (National Energy Council)

DNPI

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

EIA

Energy Information Administration

ESDM

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

EU

European Union

GDP

Gross domestic product

GHG

Greenhouse gas

GJ

Gigajoules

GW

Gigawatts

GWh

Gigawatts hour

ha

Hectares

HCVF

High conservation value forests

IAEA

International Atomic Energy Agency

IEA

International Energy Agency

IFCA

Indonesia Forest Climate Alliance

JICA

Japan International Cooperation Agency

KW

Kilowatts

LNG

Liquefied natural gas

LPG

Liquefied petroleum gas

mmboe

Millions of barrels of oil equivalent

MtCO2e

Metric tonnes (tons) of carbon dioxide equivalents

mtoe

Million tonnes of oil equivalent

MW

Megawatts

NAEA

National Atomic Energy Agency

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 (the state-owned electricity company)

PV

Photovoltaic

REDD+

Reducing Emissions from Deforestation and Forest Degradation Plus

REDS

Renewable Energy Development Sector

RSPO

Roundtable on Sustainable Palm Oil

tbd

Thousand barrels per day

tons

Metric tonnes

UK

United Kingdom

UN

United Nations

UNFCCC

United Nations Framework Convention on Climate Change

US

United States

USAID

United States Agency for International Development

USDA

United States Department of Agriculture

WWF

World Wide Fund for Nature

Notes

Acknowledgments

The authors would like to thank Muhammad Suhud and Iwan Wibisono for taking up the challenge of preparing and presenting the earliest version of this chapter in 2008 and Desak Putu Adhityani Putri for providing research assistance.

References

  1. Abdullah K (2002) Biomass energy potentials and utilization in Indonesia. Laboratory of energy and agricultural electrification, Department of Agricultural Engineering, IPB and Indonesian Renewable Energy Society [IRES], BogorGoogle Scholar
  2. Abdullah K (2005) Renewable energy conversion and utilization in ASEAN countries. Energy (Amsterdam) 30(2–4):119–128Google Scholar
  3. Agustina CDRD, del Granado JA, Bulman T, Fengler W, Ikhsan M (2008) Black hole or black gold? the impact of oil and gas prices on Indonesia’s public finances. Policy research working paper 4718, World Bank, JakartaGoogle Scholar
  4. Amir S (2009) Challenging nuclear: antinuclear movements in postauthoritarian Indonesia. East Asian Sci Technol Soc Int J 3(2–3):343–366Google Scholar
  5. Ardiansyah F, Suhud M (2007) Bioenergy for poverty alleviation. WWF Indonesia, JakartaGoogle Scholar
  6. Ariati R (2007) National policy on bioenergy. Paper for the Asian science and technology seminar, Jakarta, Indonesia, 8 MarchGoogle Scholar
  7. BAPPENAS (National Development Planning Agency) (2009) Reducing carbon emissions from Indonesia’s peat lands. BAPPENAS, JakartaGoogle Scholar
  8. Colbran N, Eide A (2008) Biofuel, the environment, and food security: a global problem explored through a case study of Indonesia. Sustain Dev Law Policy 9(1):4–1, 65–67Google Scholar
  9. DNPI (Dewan Nasional Perubahan Iklim) Indonesia (2010) Indonesia’s greenhouse gas abatement cost curve. National Council on Climate Change, JakartaGoogle Scholar
  10. EPRINC (Energy Policy Research Foundation Incorporated) (2007) Ethanol part II: is a home-grown fuel policy undermining U.S. energy security? EPRINC, Washington, DCGoogle Scholar
  11. ESDM (Ministry of Energy and Mineral Resources) (2010) Handbook of energy and economic statistics of Indonesia. ESDM, JakartaGoogle Scholar
  12. Fredriksson GM, Danielsen LS, Swenson JE (2007) Impacts of el niño related drought and forest fires on sun bear fruit resources in lowland dipterocarp forest of East borneo. Biodiver Conserv 16(6):1823–1838CrossRefGoogle Scholar
  13. Frost & Sullivan (2011) Global energy mega trends and renewable energy outlook for Indonesia. Media briefing, Jakarta, Indonesia, 30 MarchGoogle Scholar
  14. Girianna M (2009) Renewable energy and energy efficiency in Indonesia. Paper for the ADB workshop on climate change and energy, Bangkok, Thailand, 26–27 MarchGoogle Scholar
  15. Global Energy Institute (2011) The rising sun—a point of view on the solar energy sector in India. KPMG, IndiaGoogle Scholar
  16. Hawksworth J (2006) The world in 2050: implications of global growth for carbon emissions and climate change policy. PriceWaterhouseCoopers, LondonGoogle Scholar
  17. Hooijer A, Silvius M, Wösten H, Page S (2006) PEAT-CO2: assessment of CO2 emissions from drained peatlands in SE Asia, Delft Hydraulics Report No. Q3943. Delft Hydraulics, DelftGoogle Scholar
  18. IEA (International Energy Agency) (2008) Energy policy review of Indonesia. OECD/IEA, ParisCrossRefGoogle Scholar
  19. Indonesian Forest Climate Alliance (2007) REDDI: reducing emissions from deforestation and forest degradation in Indonesia: REDD methodology and strategies summary for policy makers. Ministry of Forestry, JakartaGoogle Scholar
  20. Koalisi Energi (Koalisi Energi untuk Pembangunan Berkelanjutan) (2005) Tanggapan Koalisi Energi terhadap Blueprint Pengelolaan Energi Nasional (PEN) 2005–2025 dan Usulan Paradigma Baru Pengelolaan Energi Nasional (energy coalition’s responses towards the national energy blueprint 2005–2025 and a new proposal on national energy management), Jakarta, Koalisi Energi, WWF IndonesiaGoogle Scholar
  21. Koh LP, Wilcove DS (2008) Is oil palm agriculture really destroying tropical biodiversity? Conserv Lett Hoboken 1(2):60–64CrossRefGoogle Scholar
  22. Leitmann J et al (2009) Investing in a more sustainable indonesia: country environmental analysis, 2009, CEA series East Asia and Pacific region. World Bank, JakartaGoogle Scholar
  23. Ministry of Environment (2009) Summary for policy makers: Indonesia second national communication under the United Nations framework convention on climate change (UNFCCC). Ministry of Environment, JakartaGoogle Scholar
  24. Ministry of Finance (2009) Ministry of finance green paper: economic and fiscal policy strategies for climate change mitigation in Indonesia. Ministry of Finance, Australia Indonesia Partnership, JakartaGoogle Scholar
  25. OECD (Organisation for Economic Co-operation and Development), IEA (International Energy Agency) (2010) Energy poverty: how to make modern energy access universal? OECD/IEA, ParisGoogle Scholar
  26. Pallone S (2009) Indonesia’s oil crisis: how Indonesia became a net oil importer. J Int Policy Solut 10(3):1–10Google Scholar
  27. Panaka P, (2005) The role of biomass for the energy sustainable development in Indonesia. Paper for the 1st biomass Asia workshop, Hiroshima, Japan, Jan 19–21Google Scholar
  28. Presidential Commission on Green Growth of the Republic of Korea (2009) Road to our future: green growth: national strategy and the five-year plan (2009–2013). Republic of Korea, SeoulGoogle Scholar
  29. Reinhardt G, Rettenmaier N, Gärtner S, Pastowski A (2007) Rain forest for biodiesel? Ecological effects of using palm oil as a source of energy. WWF Germany, FrankfurtGoogle Scholar
  30. Resosudarmo BP, Subiman NIL, Rahayu B (2000) The Indonesian marine resources: an overview of their problems and challenges. Indonesian Q 28(3):336–355Google Scholar
  31. Resosudarmo BP, Alisjahbana A, Nurdianto DA (2010) Energy security in Indonesia, ANU working papers in trade and development No. 2010/08, Australian National University, CanberraGoogle Scholar
  32. Sa’ad S (2009) An empirical analysis of petroleum demand for Indonesia: an application of the cointegration approach. Energy Policy (Amsterdam) 37(11):4391–4396Google Scholar
  33. Sheil, D, Casson A, Meijaard E, van Noordwijk M, Gaskell J, Sunderland-Groves J, Wertz K, Kanninen M (2009) The impacts and opportunities of oil palm in Southeast Asia: what do we know and what do we need to know? CIFOR occasional paper No. 51, Center for International Forestry Research, BogorGoogle Scholar
  34. Teoh CH (2002) The palm oil industry in Malaysia: from seed to frying pan. WWF Switzerland, ZurichGoogle Scholar
  35. Timilsina GR, Shrestha A (2009) Transport sector CO2 emissions growth in Asia: underlying factors and policy options. Energy Policy Amsterdam 37(11):4523–4539CrossRefGoogle Scholar
  36. Tindale S (2009) How to meet the EU’s 2020 renewables target, policy brief. Centre for European Reform, LondonGoogle Scholar
  37. UNDP (United Nations Development Programme) Indonesia (2009) Project facts: rural development with renewable energy, climate change and sustainable development. UNDP Indonesia, JakartaGoogle Scholar
  38. Unilever (2007) Food industry action on palm oil sustainability: Unilever statement. Unilever UK, LondonGoogle Scholar
  39. USAID (United States Agency for International Development) (2008) Indonesia energy assessment. USAID, Washington, DCGoogle Scholar
  40. Wilcove DS, Koh LP (2010) Addressing the threats to biodiversity from oil-palm agriculture. Biodiver Conserv (Dordrecht) 19(4):999–1007CrossRefGoogle Scholar
  41. World Bank (2009) Energy and climate change, policy brief 51752. World Bank, JakartaGoogle Scholar

Copyright information

© The Author(s) 2012

Authors and Affiliations

  • Fitrian Ardiansyah
    • 1
  • Neil Gunningham
    • 2
  • Peter Drahos
    • 3
  1. 1.WEH Stanner Room #1.38, Crawford School of Economics and GovernmentThe Australian National University (ANU)CanberraAustralia
  2. 2.National Research Centre for Occupational Health and Safety Regulation, RegNet, Research School of Pacific and Asian StudiesThe Australian National University (ANU)CanberraAustralia
  3. 3.Centre for Governance of Knowledge and Development, RegNet, Research School of Pacific and Asian StudiesThe Australian National University (ANU)CanberraAustralia

Personalised recommendations