Partnership between

Towards Indonesia's
Low Carbon Energy Transition

New Paradigm Thematic Paper: Renewable Energy Procurement in Indonesia

This study looks at the current energy policy regime in Indonesia and how procurement mechanisms have been used over the past decade. We identify the bottlenecks encountered in procuring renewable energy and the issues that arise. This study redefines the competitive tender approach that Indonesia uses currently and compares it to the various proven methodologies from global practices used for auctions in European countries, Malaysia, India, South Africa and Brazil. We also highlight and discuss general approaches in global renewable energy procurement. Addressing these issues and carrying out the recommendations will need supportive policies and regulatory frameworks as well as a friendly institutional environment and improved processes within both the state utility and the relevant government divisions.