The Indonesian government has decided not to propose a renewable energy subsidy in the revised 2017 state budget. It plans to supply 23 per cent of its domestic energy mix from renewable sources by 2025 to decrease carbon emissions and wean the country off fossil fuels. To achieve this goal, the National Energy Board recently recommended that the government include an Rp 1.2 trillion renewable energy subsidy in next year’s revised state budget. However, the proposal has been rejected in favour of a full-scale review of the current feed-in tariffs for every renewable energy source, including geothermal, and on the ground that subsidy should be provided to citizens, not corporations.
