Electricity generation remains a key issue for Indonesian policy-makers. Millions of households are still without access to electricity, and large investments are needed to supply reliable power for households and industries across the country. Coal has become an increasingly central part of Indonesia’s power plans and is expected by the government to continue to play a significant role in the decades to come. Despite its negative impact, Indonesia’s coal industry and electricity sector have access to subsidies that can lock in coal use for the coming decades. By contrast, renewable energy is often perceived as too expensive to build on a large scale. This report by the Global Subsidies Initiative (GSI) provides an estimate of subsidies to coal and renewables in Indonesia. It also considers the cost of externalities in order to make a comparison of the true costs associated with electricity generation from coal and renewable energy respectively. The full report is available to download on GSI’s website.
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