More Investment in Education and Rural Energy Infrastructure is Needed to Make Renewables a Widely Accepted and Utilized Energy Source in Indonesia

In Indonesia, resistance to climate change initiatives and renewable energy adoption is mainly observed in certain rural communities, specific economic groups, and energy industry segments. Rural areas, particularly on islands with limited resources, often show reluctance due to their heavy dependence on fossil fuels and diesel-based power systems, deeply embedded in local economies. These communities may see the transition to renewables as economically risky due to costs and logistical challenges, especially for small islands and remote areas that lack infrastructure for reliable, off-grid renewable energy sources.

Lower-income and economically vulnerable groups in urban and rural areas prioritize immediate economic stability over long-term climate strategies. The cost of renewable technology, coupled with limited financial incentives, makes it challenging for these groups to embrace such changes. Indonesia’s monopolized electricity market and strict investment requirements also limit incentives for renewable energy expansion, compounding public skepticism about the feasibility and benefits of a clean energy transition.

Another influential group includes employees and stakeholders within the coal industry. Indonesia is one of the world’s largest coal exporters, and this sector has strong political and economic backing. Stakeholders often resist initiatives that threaten coal’s profitability. The political landscape further reinforces this reluctance, as the interests of state-owned enterprises and private-sector coal stakeholders heavily influence energy policy discussions.

Forms of Resistance

 

 

Local Protests and Community Pushback: There is substantial resistance to renewable energy in rural and coal-dependent areas, where fossil fuel industries are major employers. Some communities have organized protests against renewable energy projects, fearing job losses and economic losses away from coal, which has historically provided stable employment. For instance, in 2017, indigenous people in Luat Lombang village of North Sumatra protested against a planned 510-megawatt hydroelectric dam. The protest turned violent when locals clashed with people claiming to be land surveyors for the project’s developer. Furthermore, communities in villages like Mataloko, Slamet, Lebong Bengkulu, Sarula North Sumatra, Lahedong, and Kerta Sari have protested geothermal energy development by building guard posts and public kitchens, refusing to allow companies to enter and build factories, and preparing a lawsuit against the Ministry of Energy and Mineral Resources. Similarly, residents of the Indonesian island of Rempang have protested the Rempang project, which involves turning the island into a solar panel ecocity.

Lobbying and Political Influence: With significant political influence, the coal industry engages in lobbying to maintain coal’s dominance in Indonesia’s energy sector. Political campaigns often emphasize coal as crucial for affordable energy and economic stability, especially in low-income and rural regions. This lobbying contributes to resistance against shifting policies that would favor renewables.

Market Barriers: Many energy firms are reluctant to adopt renewables, citing

infrastructure challenges, particularly in energy storage and grid integration, which limit renewable expansion. Additionally, fossil fuel subsidies make coal and oil cheaper than renewables, reinforcing a preference for traditional energy sources.

 

 

Reasons for Reluctance

 

Economic Factors and Affordability: Though increasingly competitive, renewables still face perception issues regarding cost-effectiveness. Fossil fuel subsidies make coal and oil more affordable, while renewables often require upfront investments in infrastructure (e.g., batteries for storage), making them less appealing to lower-income communities.

Information Gaps: The public has a limited understanding of the long-term benefits of renewables and the health impacts of continued fossil fuel use. This gap is exacerbated in rural areas with fewer educational resources on climate change, leading to a preference for known, traditional energy sources.

Reliability Concerns: Renewables are often perceived as unreliable compared to coal, especially in regions where energy storage technology is underdeveloped. This concern reinforces resistance in areas where consistent energy supply is crucial.

Strategies to Address Resistance

Education and Public Awareness Campaigns: It is essential to increase environmental literacy, especially regarding climate change impacts and the economic benefits of renewables. Programs led by the Ministry of Energy and the Indonesian Institute of Sciences aim to improve public knowledge, though coverage and effectiveness are currently limited.

Subsidy Reforms and Financial Incentives: Gradual reductions of fossil fuel subsidies and incentives for renewable energy adoption are critical. The government can increase its appeal to consumers and businesses by making renewables more cost-competitive. For instance, the 2022 Energy Transition Mechanism, supported by Indonesia’s government and international partners, supports financial incentives and policy adjustments favoring renewables.

Infrastructure Improvements: Investments in battery storage and smart grid technology are being explored to address reliability concerns. These advancements would help stabilize renewable energy supply and reduce dependency on fossil fuels, particularly in remote and rural areas where grid expansion is costly.

Effectiveness and Strengthening

While some progress has been made, the effectiveness of these strategies is mixed. Public awareness campaigns have had limited reach, especially in remote areas, and fossil fuel subsidies remain high, slowing renewables’ market competitiveness. Evidence suggests that subsidy reform and improved access to affordable energy storage could strengthen these strategies. Still, more investment in education and rural energy infrastructure will be needed to make renewables a widely accepted and utilized energy source in Indonesia.

Learn References

https://www.mdpi.com/1996-1073/15/14/5105

 

This post is submitted by Climate Scorecard Indonesia Country Manager Netra Naik.

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Primary Influencer

A prominent organization in Indonesia that can influence public opinion on climate change is the Indonesia Climate Change Trust Fund (ICCTF). This organization is part of Indonesia’s National Development Planning Agency (BAPPENAS). It works closely with the government, civil society, and international partners to promote sustainable development and combat climate change through public engagement, policy recommendations, and capacity-building initiatives.

Email: info@icctf.or.id ; secretariat@icctf.or.id

Website: https://www.icctf.or.id/

Message for the organization

We urge ICCTF to consider additional strategies to reach groups in Indonesia that are resistant to climate change initiatives, especially in rural and coal-dependent areas where misinformation and economic concerns contribute to reluctance. Addressing these misconceptions is crucial for the country’s progress toward its emission reduction targets. A focused campaign on the economic benefits of renewable energy, paired with accessible financial incentives and community workshops, could significantly change beliefs and behaviors.

Such efforts can help dispel the myth that renewable energy is unreliable and expensive, showing how it can support local economies and health outcomes. ICCTF can further Indonesia’s leadership in climate action and sustainable development by strengthening outreach in areas resistant to change.

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