The Indonesian government has been preparing incentives for industries that reduce carbon emissions, as set out in the Draft Law on New and Renewable Energy. Eniya Listiani, Director-General of New Renewable Energy and Energy Conservation at the Ministry of Energy and Mineral Resources (ESDM), stated that businesses that actively pursue decarbonisation will be eligible for incentives through the carbon economic value mechanism. The incentive scheme will be further regulated following the enactment of the draft law through technical regulations. This policy aims to encourage industries to reduce carbon emissions, which is in line with the priority targets of energy self-sufficiency and energy transition.
The Institute for Essential Services Reform (IESR) recognizes the necessity for the government to revise its energy policy, with the aim of making the renewable energy mix target more attainable. Alignment of emission reduction targets with the National Energy Policy (KEN), the National Energy General Plan (RUEN), the National Electricity General Plan (RUKN), and the Electricity Supply Business Plan (RUPTL), is essential for this purpose. The Draft New Energy and Renewable Energy Law should include clear targets and measurable support schemes for industries undertaking decarbonisation processes.
