De-risking Facilities for the Development of Indonesia’s Renewable Power Sector

While Indonesia's carbon policies other than than the RUEN are yet to receive further improvement, almost all of them encourage more ambitious targets for carbon reduction. Given the increasing urgency of these policies, drives for the energy sector should move towards the phasing out of fossils and a faster transition to renewable energy. Despite this rising drive for renewable energy, however, challenges in developing the sector remain. Several factors still cause the relative price of renewable energy to be higher than brown energy, despite the declining global prices of renewables. This report analyses the barriers associated with renewable energy in Indonesia and the potential de-risking measures to address the barriers and enable renewable energy financing.