Regulatory and Institutional Challenges to Renewable Energy in Indonesia
A Policy-Oriented Analysis
D.J.P. Warner (TU Delft - Technology, Policy and Management)
J.N. Quist – Mentor (TU Delft - Energy and Industry)
Rutger van Bergem – Graduation committee member (TU Delft - Economics of Technology and Innovation)
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Abstract
Indonesia has set ambitious renewable energy targets as part of its commitment to reach Net Zero Emissions (NZE) by 2060. Yet progress remains limited. Despite abundant resource potential and strong political rhetoric, PLN’s (national utility company) renewable electricity investment has stalled due to persistent institutional obstacles—particularly in how generation capacity is procured. This thesis investigates those obstacles and proposes targeted, regulation-level reforms to improve renewable energy procurement without requiring major legislative change or sizeable financial stimuli.
This thesis applies a layered analytical approach rooted in New Institutional Economics (NIE), which examines how formal and informal rules shape actor behaviour and policy outcomes. Two complementary NIE frameworks guide the research: the Williamson Four-Level Institutional Framework (WLIF) and the Institutional Analysis and Development (IAD) framework...