Coordinating Ministry for Economic Affairs Encourage for Harmonization of Energy Policy Frameworks

The Coordinating Ministry for Economic Affairs (“Kemenko Perekonomian”) is pushing for the harmonization of energy-related policy frameworks to support Indonesia’s energy transition. Edi Rio Pambudi, Deputy for Economic Cooperation and Investment Coordination at the Kemenko Perekonomian, stated that the Government has established various policy plans, including the Nationally Determined Contribution (“NDC”), National Biodiversity Strategies and Action Plans (“NBSAPs”), the National Long-Term Development Plan (Rencana Pembangunan Jangka Panjang Nasional – “RPJMN”), and the National Electricity General Plan (Rencana Umum Ketenagalistrikan Nasional – “RUKN”). However, these various frameworks have not yet been fully integrated. 

“We have many figures, as well as many plans, programs, and projects. However, when we get to the stage of mapping them in a more coherent manner, that is where the issue arises,” said Edi.

Edi emphasized that harmonizing and integrating the policy frameworks is important to ensure their effective implementation. According to him, this step is necessary to clarify the division of responsibilities among ministries and government agencies. Each ministry and government agency needs to understand its respective roles and authorities in implementing the energy transition.

Furthermore, Edi noted that harmonization of the policy frameworks could increase investor confidence in energy transition projects in Indonesia. He believes that greater certainty regarding responsibilities and policy implementation could encourage additional investment. Accordingly, the energy transition agenda would not merely remain a policy commitment but could be translated into projects that can be implemented.