An Environmental Perspective on Energy Development in Indonesia

Part of the SpringerBriefs in Environment, Security, Development and Peace book series (BRIEFSSECUR, volume 1)


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.


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



Asian Development Bank


Australian National University


Asia–Pacific Economic Cooperation


Badan Perencanaan Pembangunan Nasional (National Development Planning Agency)


Centre for the Analysis of Risk and Regulation


Central Intelligence Agency


Carbon dioxide


Dewan Energy Nasional (National Energy Council)


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


Energy Information Administration


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


European Union


Gross domestic product


Greenhouse gas






Gigawatts hour




High conservation value forests


International Atomic Energy Agency


International Energy Agency


Indonesia Forest Climate Alliance


Japan International Cooperation Agency




Liquefied natural gas


Liquefied petroleum gas


Millions of barrels of oil equivalent


Metric tonnes (tons) of carbon dioxide equivalents


Million tonnes of oil equivalent




National Atomic Energy Agency


Organisation for Economic Co-operation and Development


Occupational Health and Safety


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


Perusahaan Listrik Negara (the state-owned electricity company)




Reducing Emissions from Deforestation and Forest Degradation Plus


Renewable Energy Development Sector


Roundtable on Sustainable Palm Oil


Thousand barrels per day


Metric tonnes


United Kingdom


United Nations


United Nations Framework Convention on Climate Change


United States


United States Agency for International Development


United States Department of Agriculture


World Wide Fund for Nature



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.


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Copyright information

© The Author(s) 2012

Authors and Affiliations

  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

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