Overview

Back in 2014, the Indonesian Government issued Regulation of the Government No. 79 of 2014 (“Regulation 79/2014”)[1] which set Indonesia’s National Energy Policy (Kebijakan Energi Nasional – “KEN”) and which, among other goals targets a minimum contribution of at least 23% new and renewable forms of energy to the national primary energy mix by 2025, rising to 31% by 2050.[2] The Indonesian Government subsequently enacted Law No. 16 of 2016 on the Ratification of the Paris Agreement to the United Nations Framework Convention on Climate Change (“Law 16/2016”) which, among other goals, solidifies the Indonesian Government’s commitment to reducing the country’s greenhouse gas (“GHG”) emissions by 29% (for a business-as-usual scenario) or 41% (if international assistance is provided) by 2030.[3]