Policy Struggles Toward Net Zero CO₂ Emissions in Indonesia: A Political Economic Perspective

To achieve the commitments to GHG emissions reduction, and the net zero CO₂ emissions target, Indonesia has struggled with incorporating climate mitigation into electricity, transport, and land-use policies. Some argue that it is possible to reduce emissions beyond the commitment level with stronger measures, but data has shown snails’ progress. This chapter aims to explore what has driven and retarded the integration of climate actions into the electricity, transport, and land-use sectors and what the resultant policy initiatives are in climate actions. We found that the 1997/98 Asian economic crisis and subsequent political and economic changes accelerated the development path toward a land-based economy, reinforcing lock-in into fossil fuel subsidies, a coal-based electricity supply system, and forest governance that allowed the massive land conversion. Biofuel development policy emerged as a compromise to take climate actions under the lock-ins and land-based development, but it poses additional risks of deforestation under the current exploitation-oriented resource governance. Our analysis suggests the development of alternative sources of biofuels and transitions from the land-based economic structure as effective strategies to address lock-ins and the path dependency of unsustainable practices.