No abstract

The development of renewable energy in Indonesia is still in a relatively fledgling state, yet it is forecast to increase. The Government of Indonesia has formulated and implemented several strategic programs, compiled under several binding frameworks, namely the National Energy Policy and the General Plan for National Energy. The government is committed internationally to reduce its greenhouse gas emissions as part of its Nationally Determined Contributions. However, unearthing the dynamics of renewable and sustainable energy in Indonesia requires a detailed stakeholder analysis of all relevant and major actors. This paper aims to provide a stakeholder analysis of actors in the renewable and sustainable energy sector in Indonesia as a whole, using a Political, Economic, Social, Technological, Legal and Environmental (PESTLE) analysis methodology. The results have indicated that existing policies are not yet perfect, given that the renewable energy industry is still quite minimal, especially in the current conditions of falling oil prices. In the future, it is hoped that the government can formulate a breakthrough policy to improve existing policies in the renewable energy sector, such as by giving ease to investors in the renewable energy sector, including the effective and efficient supply chain management of renewable energy.

The study described in this paper uses direct evidence from processes applied for the developing economy of Indonesia, as it defines the trajectory for its future energy policy and energy research agenda. The paper addresses the research gap to make explicit the process undertaken by key stakeholders in assessing and determining the suitability, feasibility, and dynamics of the renewable energy sector. Barriers and enablers that are key in selecting the most suitable renewable energy sources for developing economies for the renewable energy development have been identified from extensive analyses of research documents alongside qualitative data from the Focus Group Discussions (FGD). The selected FGD participants encompass the collective views that cut across the political, economic, social, technological, legal, and environmental aspects of renewable energy development in Indonesia. The information gained from the FGD gives insights into the outlook and challenges that are central to energy transition within the country, alongside the perceptions of renewable energy development from the influential stakeholders contributing to the process. It is notable that the biggest barriers to transition are centred on planning and implementation aspects, as it is also evident that many in the community do not adhere to the same vision.

Indonesia has a long-standing history of reliance on fossil fuels, which reflects the country's vast reserves of crude oil, natural gas, coal, and other resources. Consequently, the potential of Indonesia's fossil energy industry is both complex and multi-layered. This paper aims to carry out a policy mapping and stakeholder analysis of Indonesia's fossil energy industry, adopting a PESTLE (Political, Economic, Social, Technology, Legal, and Environmental) approach, which allows identification of multidisciplinary stakeholders and underlying relationships across the sector. The outcomes from the analysis indicated the importance of strategically aligning the stakeholders' policies to the needs of other relevant stakeholders. Furthermore, the central and regional governments need to work closely in order to better sense if there is a change in the policy, be receptive to anticipating the potential impacts, and to avoid policies being executed in an isolated manner.

Indonesia is currently undergoing the energy transition from heavily fossil fuel-dependent energy to cleaner sources of energy in order to achieve its net-zero emissions by 2060. In addition to reducing fossil fuel dependency, as one of the countries with the most geothermal reserves, the optimization of geothermal energy in Indonesia could be key to facilitating the energy transition. The objective of this paper is to elaborate on the transition process, which incorporates the destabilization of fossil fuel and the growth of geothermal energy, by analyzing the impact of both exogenous and endogenous factors on the supply chain structures of both sectors. This study employs workshop involving geothermal stakeholders in Indonesia, combined with the application of the Multi-Level Perspective (MLP) framework as the theoretical lens. The study found that energy demand, environmental awareness, energy regulations, energy supply chain, and geothermal potential breakthroughs are important aspects pertinent to the MLP components, namely the socio-technical landscape, socio-technical regime and niche innovations. The socio-technical landscapes are exogenous factors that pressurize the energy sector regime allowing the niche innovation, in the form of geothermal innovation, to penetrate the fossil fuel regime, allowing it to transition to a geothermal regime. The transition pathways include several measures that could break down the fossil fuel and build up geothermal energy, through a number of schemes and incentives.