IMPROVING ENERGY TRANSITION IN INDONESIAN INDUSTRIAL SECTOR THROUGH POLICY TRANSFER APPROACH

• Main Author: Puspita Sari, Yuli
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/57848
• Institution: Institut Teknologi Bandung

The industrial sector is one of the largest energy consumers in Indonesia. Thus, it is important to manage the industry’s energy system towards low carbon sources to accelerate the energy transition process. Since Indonesia’s industrial development plan is still largely dependent on fossil fuels, existing policies are considered insufficient to handle the energy transition challenges. Policy learning from other countries with significant experience in this domain may help Indonesia improve the transition process through policy transfer. This study aims to provide policy recommendations that could improve energy transition in the industrial sector in Indonesia by identifying barriers and enabling factors in the transition process. In doing so, a policy analysis was performed from official policy documents, while empirical data to strengthen the findings was gathered through 8 semi-structured interviews with policymakers and industrial practitioners from Indonesia and the United Kingdom. Findings demonstrate that policy transfer helps search for the potential of policy improvement in the industry’s energy transition. Accordingly, the study focuses on how the policy transfer process could benefit energy transition in Indonesia’s industrial sector by exploring examples with policy transfer potential from the UK's energy policy. The results reveal some barriers related to the policy transfer implementation, prominently the financial barrier. Some recommendations for policymakers on how to deal with those barriers are suggested in conclusion.