Tenggara Strategics

Tenggara Backgrounder December 05, 2025

Proposed renewable rule change spark concerns of coal expansion

Indonesia's draft revision of its renewable energy regulation has raised concern that the government is backtracking on its energy transition commitments. Rather than accelerating the shift to clean energy, critics say the revision to Presidential Regulation (Perpres) N...

Tenggara Backgrounder September 19, 2025

Purbaya’s Rp 200 trillion gamble: Catalyst or costly misfire?

Newly installed Finance Minister Purbaya Yadhi Sadewa has jolted Indonesia's policy landscape with an audacious move just days into his tenure. He has redirected the government's excess budget balance of Rp 200 trillion (US$12.5 billion) from Bank Indonesia to state-own...

Tenggara Backgrounder August 29, 2025

Prabowo’s energy sovereignty faces contradictions in transition plans

President Prabowo Subianto announced that his administration aims to achieve a fully new and NRE mix within the next 10 years as part of his energy sovereignty agenda. This would also require Indonesia to accelerate its timeline for NZE, surpassing the current global ta...

Tenggara Backgrounder July 04, 2025

Indonesia bets on EV batteries to reinvigorate manufacturing

Indonesia is banking on a suite of large-scale electric vehicle (EV) battery projects, Dragon, Titan and Omega, to reverse the country's manufacturing slump, slash fuel imports and secure a strategic place in the global EV supply chain. At the heart of this national pus...

Tenggara Backgrounder June 20, 2025

Indonesia RE export plan with Singapore, is PLN out?

After years of anticipation, Indonesia and Singapore have officially signed a MoU for renewable electricity exports. Energy and Mineral Resources Minister Bahlil Lahadalia and Singapore's Minister for Trade and Industry Tan See Leng on June 13 finalized the agreement, w...

Tenggara Backgrounder June 06, 2025

Danantara’s planned corporate actions rife with contradictions

Indonesia's new sovereign wealth fund (SWF) Danantara has announced plans to invest up to US$5 billion from the $7.5 billion in dividends it collects from state-owned enterprises (SOEs) this year to fund projects that promise both high financial returns and significant ...

Tenggara Backgrounder May 30, 2025

New RUPTL signals energy security prioritized over green transition

The long-awaited 2025-2034 Electricity Procurement Business Plan (RUPTL), launched by the Energy and Mineral Resources (ESDM) Ministry on May 26, 2025, signals a shift in the government's energy priorities—placing greater emphasis on energy security over the green tra...

Tenggara Backgrounder May 09, 2025

Govt to loosen local content requirements amid US tariff threat

Twelve local business associations recently met with Coordinating Economic Affairs Minister Airlangga Hartarto to discuss potential revisions to the local content requirement (TKDN) policy. The meeting followed the United States' decision to impose new tariffs, up to 32...

Tenggara Backgrounder April 18, 2025

$2 billion Qatar fund puts Danantara on the spot, expectations soar

Indonesia and Qatar have launched a US$4 billion joint investment fund, co-managed by Indonesia's Danantara investment agency and the Qatar Investment Authority (QIA), marking a major milestone in President Prabowo Subianto's Middle East diplomacy. While the agreement s...

Tenggara Backgrounder February 28, 2025

Danantara launches with initial investment reaching US$20 billion

President Prabowo Subianto has officially launched the highly anticipated Daya Anagata Nusantara (Danantara) Investment Management Agency, announcing an ambitious initial investment wave totaling Rp 325 trillion (US$20 billion) across 20 strategic projects. Through thes...

Tenggara Backgrounder February 07, 2025

House approves KEN, prioritizing energy security over decarbonization

The House of Representatives Commission XII overseeing energy has approved a draft government regulation on the National Energy Policy (KEN), which carries a less ambitious decarbonization target. The new policy postpones the 23 percent share of renewable energy in the ...

Tenggara Backgrounder January 24, 2025

WTO rules in favor of RI, finds EU discriminated Indonesian palm oil

The WTO on Friday, Jan. 10, ruled in favor of Indonesia in a case against the European Union (EU) on palm oil-based biodiesel. The WTO found that the EU failed to properly notify trade partners about the sudden changes in in their biofuel feedstock criteria back in 201...

Tenggara Backgrounder January 24, 2025

International carbon trading at IDXCarbon seeks to revive sluggish market

The Indonesia Carbon Exchange (IDXCarbon) launched its first international carbon trading platform on Monday, aiming to attract global buyers of carbon credits and revitalize a market that has seen declining activity over the past year. However, attracting international...

Tenggara Backgrounder January 17, 2025

Pertamina RE business expands via cross-border share subscription

State-owned oil and gas holding company Pertamina, through subsidiary PNRE, plans to purchase a 20 percent share of Philippines' biggest solar power producer Citicore Renewable Energy Corporation to increase its capacity in variable renewable energy. Pertamina's strong...

Tenggara Backgrounder January 17, 2025

Bahlil appointed as head of downstream, energy resilience team

President Prabowo Subianto has appointed Energy and Mineral Resources Minister Bahlil Lahadalia to lead a task force on acceleration of the downstream industry and energy resilience, which also has authority over marine and forest areas and even to impose sanctions on p...

Tenggara Backgrounder January 10, 2025

RI to implement B40 biodiesel mandate in 2025

The Indonesian government is set to increase the palm oil-based content share in biodiesel from 35 percent (B35) to 40 percent (B40) starting in 2025. This move aligns with the nation's renewable energy and carbon reduction targets while advancing the downstream develop...

Tenggara Backgrounder January 10, 2025

Govt issues RUKN to achieve NZE 2060 as court alters Job Creation Law

The government issued the National Electricity General Plans (RUKN) 2024 – 2060 to align with the country's net-zero emissions (NZE) target on Nov. 29, 2024, without consulting the House of Representatives. On the same day, the Constitutional Court ruled in favor of a...

Tenggara Backgrounder November 29, 2024

New PLN commissioners amid change in energy SOEs’ boards

State-owned electricity giant PT PLN has four new commissioners, mostly close allies of President Prabowo Subianto. The change is much anticipated following similar changes in the boards of state-owned oil and gas giant Pertamina. Board replacement at the energy SOEs wi...

Tenggara Backgrounder November 29, 2024

Legislative agenda excludes much-awaited asset forfeiture bill

The House of Representatives has approved the National Legislation Program (Prolegnas) for 2025, during which the lawmakers will deliberate 41 priority bills. The list clearly represents a compromise between the political elites, rather than public aspirations, such as ...

Tenggara Backgrounder November 22, 2024

Prabowo advances Indonesia’s agenda at APEC, G20 summits

President Prabowo Subianto marked his first overseas trip as Indonesia's leader with a high-profile debut at two major multilateral forums, achieving notable milestones for the country's foreign policy agenda. The president attended the APEC Summit in Lima, Peru, from N...

Tenggara Backgrounder November 22, 2024

Prabowo’s energy vision, backed by 1.2 billion euros in green financing

Indonesia received a significant boost of 1.2 billion euros (US$1.14 billion) in green financing from a German bank, Kreditanstalt für Wiederaufbau (KfW), at the United Nations Climate Change Conference's 29th meeting (COP29) in Baku, Azerbaijan. This funding has unlo...

Tenggara Backgrounder November 08, 2024

Political appointees helm Pertamina amid grandiose energy ambitions

Gerindra politician Simon Aloysius Mantiri was recently appointed as the new CEO of state-owned oil and gas holding company Pertamina, followed by two other Gerindra politicians on the board of commissioners, one of them as chief commissioner. Their appointments reflect...

Tenggara Backgrounder October 25, 2024

Prabowo’s promises self-sufficiency amid energy trilemma

President Prabowo Subianto has vowed to achieve energy self-sufficiency amid ongoing geopolitical tensions while emphasizing the country's abundance of renewable energy sources to develop greener power, such as biodiesel. However, Prabowo's aim could be overoptimistic, ...

Tenggara Backgrounder August 23, 2024

Conflicts of interest shroud Bahlil appointment as energy minister

In a rush for a last-minute reshuffle, President Joko "Jokowi" Widodo appointed one of his most trusted aides, Bahlil Lahadalia as energy and mineral resources minister, replacing Arifin Tasrif who has close ties with the Indonesian Democratic Party of Struggle (PDI-P)....

Tenggara Backgrounder August 16, 2024

Prabowo adds Russia to Indonesia’s strategic balancing act

Indonesia's relations with Russia will likely deepen and expand into many areas in the coming years following the meeting between president-elect Prabowo Subianto and Russian leader Vladimir Putin in Moscow this month. Whether by design or not, strengthening relations w...

Tenggara Backgrounder June 28, 2024

Close ties with establishment wins NU lucrative coal mining business

Nahdlatul Ulama (NU) is set to receive a coal mining permit from the government after President Joko ‘'Jokowi'' Widodo signed Government Regulation No.25/2024 that opens up opportunities for faith-based mass organizations to participate in the industry. NU has worked ...

Tenggara Backgrounder May 24, 2024

Govt relaxes local content requirements for renewable energy

The Indonesian government plans to simplify and reduce local content requirements (TKDN) in the electricity sector to at least 25 percent to boost investment in renewable energy, which has been moving at a snail pace due to various barriers, especially unattractive pric...

Tenggara Backgrounder May 10, 2024

Revised Village Law at crossroads

The government and the House of Representatives have formally completed the revision of the Village Law, which had been strongly demanded by village elites across the country, but its effectiveness in improving the welfare of villages and their peoples will remain to be...

Updated rooftop solar panels rulings eliminates net metering

President Joko "Jokowi" Widodo has recently approved the long-awaited revision of a ministerial regulation on PLTS that has not been implemented fully by state electricity company PT PLN. The regulation addresses such hiccups in its implementation by eliminating exports...

Tenggara Backgrounder February 02, 2024

Indonesia prepares itself for nuclear energy, Luhut to lead

Indonesia is moving closer to developing nuclear power plants after final arrangements are set for the formation of the Nuclear Energy Program Implementing Organization (NEPIO). Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan has been listed as ch...

Tenggara Backgrounder January 26, 2024

Opposition candidates join forces in final VP debate

Attacks on the ruling government stole the show at the second and final vice presidential candidate debate on Sunday, when Muhaimin Iskandar and Mahfud MD of the two opposition camps pushed the establishment's symbol Gibran Rakabuming Raka into a corner. While all three...

Tenggara Backgrounder December 08, 2023

RI frustrated with developed countries' energy transition financing

President Joko "Jokowi" Widodo and his trusted aid Coordinating Maritime Affairs and Investment Minister Luhut Binsar Pandjaitan both expressed their frustration against developed countries over energy transition financing during the climate summit in Dubai, while state...

Tenggara Backgrounder November 24, 2023

Govt launches JETP investment plan with more ambitious targets

After some tough negotiations, the Indonesian government and developed countries grouped in the IPG finally launched the multibillion-dollar non-binding CIPP to achieve net-zero emission in the electricity sector by 2050 with more ambitious targets for emission reductio...

Tenggara Backgrounder November 24, 2023

Anies-Muhaimin seeks to chart a new course from Jokowi government

The candidate pair of Anies Baswedan and Muhaimin Iskandar has emerged as a formidable force in the political landscape ahead of the 2024 presidential election. The ticket's background and experience bring unique perspectives to the table, something different from the o...

Tenggara Backgrounder November 17, 2023

Recent RI-US meetings signal stronger cooperation

Ahead of the APEC Summit in San Francisco this week, Indonesia President Joko Widodo and the US President Joe Biden on Monday held a bilateral meeting to discuss the Comprehensive Strategic Partnership between the two countries. The partnership includes security coopera...

Tenggara Backgrounder November 03, 2023

RI seeks to kickstart coal-fired power plant retirement ahead of COP 28

The Indonesian government is planning to kickstart the early retirement of its coal-fired power plants (CFPP) ahead of the upcoming 2023 UN Climate Change Conference (UNFCCC COP 28), amid the slow disbursement progress of promised foreign funding. Captive CFPPs for meta...

Tenggara Backgrounder October 27, 2023

BRI Forum: billion-dollar deals sealed, many on renewables

The Indonesia-China Business Forum, held on the sidelines of the third Belt and Road Forum for International Cooperation in Beijing last week, has produced cooperation agreements between Indonesian and Chinese companies totaling US$13.7 billion. The cooperation agreemen...

Tenggara Backgrounder October 13, 2023

Pertamina to receive Rp 3.37 trillion in state capital injection

State-owned energy company PT Pertamina has quietly received a PMN of Rp 3.37 trillion (US$40.47 billion), based on a presidential regulation (PP) signed on Oct. 3. Pertamina has received this PMN to fortify the SOE's capital structure as well as to fund the capacity of...

Tenggara Backgrounder August 25, 2023

Jakarta breathes in crisis as govt scrambles to solve air pollution

The deteriorating air pollution in Greater Jakarta continues to spark public outcries. In the past month alone, the government has scrambled to address the worsening air quality in the capital city, which has been classified as the worst in the world. However, the gover...

Tenggara Backgrounder August 04, 2023

Govt to ease requirements for electric motorcycle subsidy

The Indonesian government’s subsidy program for electric motorcycles has faced a slow uptake since it was first introduced on March 20. It is a blow to what was aimed to speed up the mass adoption of electric vehicles (EVs) in the country. Now, the government is looki...

Tenggara Backgrounder July 21, 2023

RI doubtful over JETP funding for PLTU retirement, seeks options

The initial enthusiasm towards the multi-billion Just Energy Transition Partnership (JETP) Indonesia program has given way to apprehension. The uncertainty surrounding public funding from donor countries potentially impedes Indonesia's ambition to achieve early retireme...

Tenggara Backgrounder July 14, 2023

Indonesian banks’ funding of coal industry contradicts climate efforts

Five national banks Bank Mandiri, Bank Negara Indonesia, and Bank Rakyat Indonesia, as well as private lenders Bank Central Asia and Bank Permata (PermataBank), decided to finance Adaro Energy Indonesia’s construction of a coal-fired power plant and an aluminum smelte...

Tenggara Backgrounder June 23, 2023

RI to run market trial for 5-percent bioethanol mix

The ESDM Ministry, with oil and gas SOE Pertamina, plans to conduct a market trial for the SOE’s Pertamax gasoline fuel with 5-percent bioethanol mix (E5) by July 2023. The trial is part of the ministry’s program to raise biofuel use, in line with the ESDM Ministeri...

Tenggara Backgrounder June 23, 2023

Golden Indonesia 2045 development plan prepared for next presidents

President Joko “Jokowi” Widodo is drafting a 2025-2045 National Long-Term Development Plan (RPJPN) for the next presidents to realize his Golden Indonesia 2045 vision to transform Indonesia into a developed country by 2045 with an income per capita of US$30,300, a v...

Tenggara Backgrounder June 23, 2023

Johny fights back, offers himself as justice collaborator

As the plot thickens on the alleged corruption in the procurement of base transceiver stations (BTS) for the government’s 4G infrastructure project, the Attorney General’s Office (AGO) on Thursday named PT Basis Utama Prima (BUP) director Muhammad Yusrizki Muliawan ...

Tenggara Backgrounder June 16, 2023

RI bans bauxite exports as US implements IRA

The Indonesian government is going ahead with its ban on bauxite exports, effective from June 10, to enhance mineral downstreaming. This commitment remains steadfast, even in the face of challenges presented by the implementation of the Inflation Reduction Act (IRA) by ...

Tenggara Backgrounder May 26, 2023

General Electric's gas turbines fail Jawa-1 CCGT

The 1,760-megawatt (MW) Jawa-1 combined cycle gas-fired power plant (CCGT) project has missed its commercial operations date (COD) deadline. A part of President Joko “Jokowi” Widodo’s 35,000 MW electrification megaproject for Java and Bali, the power plant project...

Tenggara Backgrounder May 26, 2023

Govt laments lack of G7 commitment for national energy transition

Indonesia has expressed its upset with developed countries’ hollow commitments to funding the country’s energy transition. In every bilateral meeting with leaders of the Group of Seven countries in Tokyo last weekend, President Joko “Jokowi” Widodo demand each o...

Tenggara Backgrounder March 17, 2023

Air Products exits RI’s coal downstream projects

After a tug-of-war in coal supply price negotiations for a coal-to-dimethyl ether (DME) conversion project with Indonesian state-owned enterprises (SOEs) Bukit Asam (PTBA) and Pertamina, United States chemical company Air Products & Chemical finally decided to leave all...

Tenggara Backgrounder March 03, 2023

Carbon trading kicks off with 99 coal-fired power plants

Carbon trading in Indonesia is now on the horizon after the government finally set an emissions upper limit technical approval (PTBAE) for coal-fired power plants (PLTU) through Energy and Mineral Resources Ministerial decree No. 14/2023, dated Feb. 22. When carbon trad...

Tenggara Backgrounder March 03, 2023

PGE stock has yet to close higher than IPO price

Pertamina Geothermal Energy’s (PGE) stock price took a dramatic nosedive on the first day of trading on Feb. 24, hitting the auto rejection lower limit, before finally closing back to the initial public offering (IPO) price of Rp 875 (5.7 US cents) per share on the sa...

Tenggara Backgrounder February 24, 2023

RI launches JETP Secretariat to accelerate energy transition

Indonesia on Feb. 16 launched the long-awaited Just Energy Transition Partnership (JETP) Secretariat, located in the Energy and Mineral Resources (ESDM) Ministry building, that will oversee the mobilization of US$20 billion from the international partner group countries...

Tenggara Backgrounder February 17, 2023

Coal to remain as dominant energy source even after energy transition

The government’s promise to reduce the country’s dependence on coal rings false as plans are in place to implement coal derivatives as new sources for Indonesia’s energy. With three out of the five sources of “new energy” being coal derivatives, many are accus...

Tenggara Backgrounder February 17, 2023

RI-China reach agreement on Jakarta-Bandung HSR cost-overrun

Deputy State-Owned Enterprises (SOEs) Minister Kartika Wirjoatmodjo announced an agreement had been reached between Indonesia and China regarding the amount of Jakarta-Bandung High Speed Rail (HSR) project cost overrun, but the figure seems to be classified. The agreeme...

Tenggara Backgrounder February 03, 2023

Removal of export incentives reduces interest in residential solar panels

Talk of revising the incentives in Energy and Mineral Resources Ministerial Regulation (Permen ESDM) No. 26/2021 on rooftop solar power systems (PLTS) has been floating around the House of Representatives.1 The incentives were to allow owners of rooftop PLTS to reduce ...

Tenggara Backgrounder December 23, 2022

Govt rolls out red carpet for nuclear mining and processing

The long-awaited Presidential Regulation (Perpres) No. 52/2022 on safe and secure nuclear material mining was passed Dec. 12. The regulation mainly covers safety and security processes in mining for raw nuclear materials....

Tenggara Backgrounder December 09, 2022

Dwi Soetjipto reappointed SKK Migas chair amid dwindling oil output

President Joko “Jokowi” Widodo has reappointed Dwi Soetjipto as chairman of the Upstream Oil and Gas Regulatory Task Force (SKK Migas) for the 2022-2026 period amid a mass departure of multinational oil companies from the country and continuing declines in oil and g...

Tenggara Backgrounder December 02, 2022

Govt to give free rice cookers to electrify cooking

In light of soaring energy prices and electricity oversupply, the government continues to look for ways to electrify cooking. Previously, the state-owned electricity company (PLN) failed miserably with its electric stove conversion program, abruptly stopping it midway d...

Tenggara Backgrounder November 18, 2022

RI receives flurry of global pledges to help retire coal plants early

Indonesia has received pledges totaling US$20 billion from developed countries and global private lenders through the Just Energy Transition Partnership (JETP), led by the United States and Japan, to help the country retire its coal power plants, bringing forward the po...

Tenggara Backgrounder November 11, 2022

Co-firing spearheads PLN’s efforts to go green

Time is running out for the government to realize its 23 percent renewable energy target in the country’s primary energy mix by 2025. As of October 2021, renewable energy only made up 13.54 percent of the energy mix, 12.77 percent of which was used in power plants. No...

Tenggara Backgrounder November 04, 2022

New, renewable energy bill to roll out red carpet for nuclear power

Nuclear power will soon have a stronger foothold in Indonesia’s energy regulatory framework. Back in Presidential Regulation (PP) No. 79/2014 on national energy policy, nuclear power was considered as the last resort in securing the country’s energy demand due to it...

Tenggara Backgrounder October 28, 2022

PTBA acquires PLN’s assets to rush coal-fired power plant retirement

One source in the government said it had other plans from the PTBA corporate action to buy power plants from PT PLN. The State-Owned Enterprises (SOEs) Ministry hopes that the purchase of the power plant assets can bring positive sentiment, especially to attract other p...

Tenggara Backgrounder October 21, 2022

Prioritizing economic recovery, Govt delays carbon tax until 2025

After being delayed for half a year, Coordinating Economic Minister Airlangga Hartarto announced on Oct. 13 that the carbon tax will be implemented in 2025. Business players and analysts were not surprised as the country has yet to issue any regulations to implement the...

Tenggara Backgrounder October 21, 2022

Erick creates holding SugarCo to cut imports, support energy transition

The State-Owned Enterprises (SOEs) Ministry has finally established its sugar factory holding entity SugarCo or PT Sinergi Gula Nusantara (SGN). The holding formation aims to achieve national sugar self-sufficiency to reduce imports and increase domestic bioethanol prod...

Tenggara Backgrounder September 30, 2022

PLN restructuring paves way for subsidiary privatization

State-owned electricity company PT PLN recently formed four sub-holding companies, two that consolidate all its power generation assets, one that integrates primary energy management and one that develops services beyond electricity. The two power generation companies w...

Tenggara Backgrounder September 23, 2022

Jokowi issues renewable energy regulation with unattractive pricing scheme

Presidential regulation (Perpres) No. 112/2022 on renewable energy, which had been teased since last year, is finally out. However, the reaction to the regulation has been bleak. There is no feed-in tariff and the ceiling price set for electricity purchased by state-own...

Tenggara Backgrounder July 15, 2022

Govt adopts mandatory B35 biodiesel program as CPO prices tumble

The reversal of crude palm oil (CPO) prices to below US$900 per ton and its repercussions in the domestic market have forced the government to take yet another drastic measure to help the commodity by advancing the B35 biodiesel mandatory program later this month. The p...

Tenggara Backgrounder April 08, 2022

Unfinished regulations delay govt’s plan to carbon tax PLTUs

The government has delayed implementation of the carbon tax for coal-powered power plants (PLTUs) from April 1 to July due to incomplete regulations. The government seems to be in a dilemna over carbon taxing PLTUs and other carbon-intensive industries, fearing that it ...

Tenggara Backgrounder March 25, 2022

New investors to take over Kayan hydro power plants in N. Kalimantan

China-backed PT Kayan Hydro Energy (KHE) has a gigantic plan of building five hydropower plants in Bulungan, but nothing has really happened. The government now has a different plan, to bring in new investors to kickstart the stalled hydropower project, that is expected...

Tenggara Backgrounder January 28, 2022

PGE to go public, geothermal holding firm plan shelved

The country’s largest geothermal power developer PT Pertamina Geothermal Energy (PGE) plans to conduct an initial public offering (IPO) of its shares through the Indonesian Stock Exchange (IDX) later this year to raise public funds to develop untapped geothermal energ...

Tenggara Backgrounder January 28, 2022

After 4-month freeze, solar panel regulation finally passed

After it was frozen for four months because of an inter-ministerial dispute, Energy and Mineral Resources Ministerial Regulation (Permen ESDM) No. 26/2021 on rooftop solar energy finally came into force this month when the Finance Ministry backed down on its demand to r...

Tenggara Backgrounder January 07, 2022

Coal barron building world’s biggest green industrial estate

Indonesian business players are building what is expected to be the world’s biggest green industrial estate in North Kalimantan, worth US$132 billion, with politically connected coal barron Garibaldi “Boy” Thohir leading the consortium of investors developing the ...

Tenggara Backgrounder December 17, 2021

PDI-P secures future political standing through state institutions

Indonesian Democratic Party of Struggle (PDI-P) politician Darmawan Prasodjo was recently appointed president director of state electricity company PLN. Darmawan’s appointment adds to the growing list of senior PDI-P members holding strategic positions in state instit...

Tenggara Backgrounder December 17, 2021

Regulation on rooftop solar panels on hold due to internal dispute

Energy and Mineral Resources Ministerial Regulation (Permen ESDM) No. 26/2021, which was meant to expediate public investment in the national rooftop solar panel system, has recently been put on hold. Halted by an internal government dispute, the freezing of the Permen ...

Tenggara Backgrounder December 10, 2021

Politician appointed to lead PLN to support EV program

After replacing the performing CEO of state-owned mining holding company Mining Industry Indonesia (MIND ID), State-Owned Enterprises (SOEs) Minister Erick Thohir sacked the CEO of state-owned electricity company PT PLN despite his impressive financial improvements of t...

Tenggara Backgrounder November 26, 2021

Jokowi reprimands Pertamina, PLN, pushes for energy transition

President Joko “Jokowi” Widodo gathered directors and commissioners of state-owned oil and gas holding company Pertamina and state-owned electricity company PLN only to reprimand them for their tardiness in responding to investor interest in Indonesia. The President...

Tenggara Backgrounder November 12, 2021

Indonesia signs COP26 coal phase-out pledge, lacks commitment

The Indonesian government recently signed the landmark coal phase-out pledge at the 26th United Nation Climate Change Conference (COP26). Despite being a step forward in obtaining international trust and financial support, the government’s reluctance to endorse one of...

Tenggara Backgrounder October 29, 2021

Indonesia to prioritize climate finance at COP26 summit

At the upcoming 26th United Nations Climate Change Conference (COP26), Indonesia will be prioritizing, among other things, the completion of international rules governing climate finance. With its delegation consisting of both state and non-state actors, Indonesia has a...

Tenggara Backgrounder October 22, 2021

Windfalls from global energy prices boom

Indonesia has enjoyed an unprecedented windfall from the current crunch in the global energy supply, as reflected in its trade surplus in July, August, and September of respectively US$4.12 billion, $4.75 billion, and $4.37 billion. Taking this development into consider...

Tenggara Backgrounder October 15, 2021

PLN commits to net-zero emission by 2060 with newest, greenest RUPTL

When state-owned electricity company PLN announced that it aimed to phase out coal by 2060, it received applause backhanded with skepticism. Indonesia’s electricity sector relies heavily on coal, with 61 percent of electricity generated in the country sourced from the...

Tenggara Backgrounder October 15, 2021

Second tax amnesty a dilemma between revenue and compliance

President Joko “Jokowi” Widodo is pursuing a second round of tax amnesty through the newly passed Tax Harmonization Law (HPP) in an effort to boost tax revenues amid the pandemic. The public, however, have viewed the policy negatively, believing it would only benefi...

Tenggara Backgrounder October 08, 2021

House approves tax harmonization law, introduces carbon tax

The House of Representative passed the amendment of the 1983 General Taxation Law (KUP) on Thursday and renamed it the Tax Harmonization Law (HPP) Law. The fifth amendment of the KUP Law, the HPP Law carries several changes and a set of bold strategies, ranging from int...

Tenggara Backgrounder September 03, 2021

Businesses frown on carbon tax as govt, House debates tax bill

The government’s plan to impose a carbon tax through an amendment of the 1983 General Taxation (KUP) Law has drawn an intense debate about its pros and cons. Many business associations have voiced their opposition, saying it would reduce the competitiveness of many in...

Tenggara Backgrounder August 06, 2021

Govt appoints PGE as geothermal holding, to go public

In a bid to boost Indonesia’s green energy use, the government has appointed PT Pertamina Geothermal Energy (PGE) as a geothermal holding company, named Holding Geothermal Indonesia (HGI). HGI will acquire stakes of other state-owned geothermal companies, namely PT PL...

Tenggara Backgrounder July 09, 2021

Mitsui, Itochu to exit coal business in Indonesia

Japan-based Mitsui & Co. has finally found a way to pull out of its investment in PT Paiton Energy, an independent power producer (IPP) that operates one of the biggest coal-fired power plants in Indonesia. Mitsui has signed a sale and purchase agreement with RH Interna...

Tenggara Backgrounder June 25, 2021

Govt to impose carbon tax for more revenue to meet emissions target

The government is preparing to levy a carbon tax as part of a major overhaul of the country’s taxation system. By imposing the new tax, it hopes to sustain the state budget and meet national carbon emissions reduction targets. However, many worry that the carbon tax w...

Tenggara Backgrounder June 04, 2021

Indonesia to stop building coal power plants, phase them out

President Joko “Jokowi” Widodo told a limited Cabinet meeting on May 11 that Indonesia will not build new coal-powered power plants (PLTU) starting 2025 and phase out PLTU from its energy mix in 2030 to achieve carbon neutrality by 2060. Following Jokowi’s instruc...

Tenggara Backgrounder May 28, 2021

INA attracts more investors as it gets closer to making its first investment

Little is known about the first project that the Indonesia Investment Authority (INA) will invest in, but it is making a big move to kickstart its investment programs. Indonesia’s newly established sovereign wealth fund (SWF) is teaming up with CDPQ, APG and an ADIA s...

Tenggara Backgrounder April 30, 2021

Indonesia to target carbon neutrality by 2060, a bit late

Indonesia’s carbon neutrality target suddenly came to the fore recently ahead of the climate summit hosted by United States President Joe Biden last week. Many expected President Joko “Jokowi” Widodo to announce it during the summit, but he did not even touch on t...

Tenggara Backgrounder April 02, 2021

Palm oil key to poverty reduction but doubts linger on sustainability

Swiss voters narrowly backed a free trade agreement with Indonesia in early March, which would abolish duties on industrial products including palm oil as long as they meet certain environmental and social standards. With the trade agreement to be implemented in the lat...

Tenggara Backgrounder January 22, 2021

Indonesia, EU clash on nickel ore and palm oil

Trade tensions between Indonesia and the EU have re-escalated following the bloc’s decision to challenge Indonesia’s nickel ore export ban at the WTO. The EU decision follows Indonesia’s challenge at the WTO last year over the EU’s discriminative trade policy th...

Tenggara Backgrounder December 04, 2020

Tsingshan comes to Freeport’s rescue

During the New and Renewable Energy (EBTKE) Conference and Exhibition webinar on Nov. 25, Maritime Affairs and Investment Coordinating Minister Luhut Pandjaitan surprised the audience by saying that Chinese stainless steel giant Tsingshan Holding Group is holding a talk...

Tenggara Backgrounder November 27, 2020

Govt signals seriousness on renewable energy development

The government has signalled its seriousness in boosting Indonesia's renewable energy investment through the upcoming presidential regulation and the deliberation of the renewable energy bill. Besides, the government has also revived the National Energy Council (DEN) an...

Tenggara Backgrounder November 20, 2020

After one year in limbo, DEN has new independent members

After being left in limbo for more than one year, the National Energy Council (DEN) will function to safeguard the country’s energy transition after the government finally nominated 16 candidates for DEN’s independent board members. The House last week selected eigh...

Tenggara Backgrounder November 13, 2020

Newly appointed renewables, oil and gas directors face difficult tasks

The newly appointed Energy and Mineral Resources Ministry’s renewables director general Dadan Kusdiana and oil and gas director general Tutuka Ariadji have tough challenges ahead. Dadan has the responsibility of accelerating clean energy development that has been slug...

Tenggara Backgrounder October 30, 2020

Jokowi calls for downstreaming in exchange for waived coal royalties

President Jokowi has urged coal companies to stop exports of unprocessed coal and to build downstream industries. He has promised a zero percent royalty and other incentives for coal companies that build downstream industries and add value to coal-based commodities. Jok...

Tenggara Backgrounder October 16, 2020

SOE minister intervenes as PLN struggles to pay debts

SOE Minister Erick Thohir recently wrote a letter to fellow Energy and Mineral Resources Minister Arifin Tasrif, asking the latter to help state-owned electricity company PLN’s finances by not issuing licenses to build new power plants as PLN was suffering from over-c...

Tenggara Backgrounder August 14, 2020

Mitsui to exit from Paiton Energy, shifts from fossils to renewables

The end is near for Japan-based Mitsui Group’s investment in coal-fired power plants (PLTUs). The group’s general trading company Mitsui & Co. is weighing up selling its stake in PT Paiton Energy, one of the biggest independent power producers (IPP) in Indonesia . O...

Tenggara Backgrounder June 19, 2020

Pertamina management reshuffles, Nicke remains at the top

Despite her failure in securing a partnership for the Cilacap refinery after Saudi oil giant Aramco walked away from the project, state-owned energy holding company Pertamina president director Nicke Widyawati has kept her position as the number one person in the compan...

Tenggara Backgrounder January 10, 2020

National Energy Board left in limbo

Amid the disappointing progress made toward energy-related targets set in the National Energy Policy (KEN), the National Energy Board (DEN) has found itself in limbo with no independent board members following the House’ rejection of all the candidates from the govern...

Tenggara Backgrounder December 27, 2019

The demise of Rudiantara, the rise of the banker in PLN

<p>President Joko "Jokowi" Widodo backed out from endorsing former communication and information minister Rudiantara as state electricity firm PLN president director and made a swift adjustment by appointing former state-owned lender Bank Mandiri president director Zulk...

Tenggara Backgrounder November 29, 2019

Corrupt-ridden PLN in good hands

Former communications and information minister Rudiantara will, once again, grab the power to lead corrupt-ridden state-owned electricity company as its CEO. Once serving as PLN deputy CEO, Rudiantara has a better chance to make the state utility company healthier to en...

Tenggara Backgrounder November 22, 2019

Leaked RED II internal letter triggers uproar over IEU-CEPA talks

On Oct. 22, Palm Oil Monitor released a leaked internal letter written by European Union (EU) Trade Director General Jean-Luc Demarty, addressed to Energy Director General Dominique Ristori. Following the release of the leaked letter, Indonesia seems ready to bring the ...

Tenggara Backgrounder November 22, 2019

Calculating Ahok’s new power

Former Jakarta governor Basuki “Ahok” Tjahaja Purnama appears to have a volatile career trajectory. After his much-publicized political downfall in 2017 due to a religious blasphemy case that resulted in his imprisonment, Ahok may, in the near future, chair a strate...

Keyword: "renewable"

Proposed renewable rule change spark concerns of coal expansion

Purbaya’s Rp 200 trillion gamble: Catalyst or costly misfire?

Prabowo’s energy sovereignty faces contradictions in transition plans

Indonesia bets on EV batteries to reinvigorate manufacturing

Indonesia RE export plan with Singapore, is PLN out?

Danantara’s planned corporate actions rife with contradictions

New RUPTL signals energy security prioritized over green transition

Govt to loosen local content requirements amid US tariff threat

$2 billion Qatar fund puts Danantara on the spot, expectations soar

Danantara launches with initial investment reaching US$20 billion

House approves KEN, prioritizing energy security over decarbonization

WTO rules in favor of RI, finds EU discriminated Indonesian palm oil

International carbon trading at IDXCarbon seeks to revive sluggish market

Pertamina RE business expands via cross-border share subscription

Bahlil appointed as head of downstream, energy resilience team

RI to implement B40 biodiesel mandate in 2025

Govt issues RUKN to achieve NZE 2060 as court alters Job Creation Law

New PLN commissioners amid change in energy SOEs’ boards

Legislative agenda excludes much-awaited asset forfeiture bill

Prabowo advances Indonesia’s agenda at APEC, G20 summits

Prabowo’s energy vision, backed by 1.2 billion euros in green financing

Political appointees helm Pertamina amid grandiose energy ambitions

Prabowo’s promises self-sufficiency amid energy trilemma

Conflicts of interest shroud Bahlil appointment as energy minister

Prabowo adds Russia to Indonesia’s strategic balancing act

Close ties with establishment wins NU lucrative coal mining business

Govt relaxes local content requirements for renewable energy

Revised Village Law at crossroads

Updated rooftop solar panels rulings eliminates net metering

Indonesia prepares itself for nuclear energy, Luhut to lead

Opposition candidates join forces in final VP debate

RI frustrated with developed countries' energy transition financing

Govt launches JETP investment plan with more ambitious targets

Anies-Muhaimin seeks to chart a new course from Jokowi government

Recent RI-US meetings signal stronger cooperation

RI seeks to kickstart coal-fired power plant retirement ahead of COP 28

BRI Forum: billion-dollar deals sealed, many on renewables

Pertamina to receive Rp 3.37 trillion in state capital injection

Jakarta breathes in crisis as govt scrambles to solve air pollution

Govt to ease requirements for electric motorcycle subsidy

RI doubtful over JETP funding for PLTU retirement, seeks options

Indonesian banks’ funding of coal industry contradicts climate efforts

RI to run market trial for 5-percent bioethanol mix

Golden Indonesia 2045 development plan prepared for next presidents

Johny fights back, offers himself as justice collaborator

RI bans bauxite exports as US implements IRA

General Electric's gas turbines fail Jawa-1 CCGT

Govt laments lack of G7 commitment for national energy transition

Air Products exits RI’s coal downstream projects

Carbon trading kicks off with 99 coal-fired power plants

PGE stock has yet to close higher than IPO price

RI launches JETP Secretariat to accelerate energy transition

Coal to remain as dominant energy source even after energy transition

RI-China reach agreement on Jakarta-Bandung HSR cost-overrun

Removal of export incentives reduces interest in residential solar panels

Govt rolls out red carpet for nuclear mining and processing

Dwi Soetjipto reappointed SKK Migas chair amid dwindling oil output

Govt to give free rice cookers to electrify cooking

RI receives flurry of global pledges to help retire coal plants early

Co-firing spearheads PLN’s efforts to go green

New, renewable energy bill to roll out red carpet for nuclear power

PTBA acquires PLN’s assets to rush coal-fired power plant retirement

Prioritizing economic recovery, Govt delays carbon tax until 2025

Erick creates holding SugarCo to cut imports, support energy transition

PLN restructuring paves way for subsidiary privatization

Jokowi issues renewable energy regulation with unattractive pricing scheme

Govt adopts mandatory B35 biodiesel program as CPO prices tumble

Unfinished regulations delay govt’s plan to carbon tax PLTUs

New investors to take over Kayan hydro power plants in N. Kalimantan

PGE to go public, geothermal holding firm plan shelved

After 4-month freeze, solar panel regulation finally passed

Coal barron building world’s biggest green industrial estate

PDI-P secures future political standing through state institutions

Regulation on rooftop solar panels on hold due to internal dispute

Politician appointed to lead PLN to support EV program

Jokowi reprimands Pertamina, PLN, pushes for energy transition

Indonesia signs COP26 coal phase-out pledge, lacks commitment

Indonesia to prioritize climate finance at COP26 summit

Windfalls from global energy prices boom