The political economy of oil supply in Indonesia and the implications for renewable energy development

School of Earth and Environmental Sciences, The University of Queensland, Brisbane, Australia
A notable research gap in the Indonesian policy environment is the lack of discussion about its energy planning. This article addresses the problem by adopting a political economy approach to investigate the country’s mix and security of energy supplies to 2050. A comprehensive review produces three project inquiries into the continued reliance on oil and implications of greater moves toward renewable sources of energy. A situation audit appraises Indonesia’s place in the global politics of oil supply, its domestic logistics, its continuing oil subsidy, and positioning toward fossil fuel emissions and renewable energy. Shortcoming are identified in the nation’s high dependency on fossil fuels and, in particular, oil imports; the extent of its oil subsidy; a lack of strategic oil buffers; insufficient attention to emissions; and contradictory policies towards renewable energy. The article concludes by presenting a research agenda to support the transition of Indonesia’s energy mix and security to 2050.

Cite

Rahman, Arief., Dargusch, Paul., Wadley, David. 2021. The political economy of oil supply in Indonesia and the implications for renewable energy development. Renewable and Sustainable Energy Reviews, Vol. 144, 111027. https://doi.org/10.1016/j.rser.2021.111027.