RENEWABLE RESOURCES EXPORT OPPORTUNITIES: ACCELERATING DEVELOPMENT

Abstract

The transition to clean energy systems across the world offers both challenge and opportunities for resource-rich developing countries like Indonesia. Even as the country continues to export large volumes of natural gas, falling domestic quotas and pressure to decarbonize internationally are pushing the country increasingly toward wind and solar power. This paper investigates Indonesia’s potential to export renewable energy through bio-based biogas, biomethane, and bio-LNG. Based on a qualitative content analysis of policy documents, institutional reports and international accords, the analysis struggles with an enlargement of the mismatch between ambitious national goals and crawly domestic measures. Given regulatory and infrastructure limitations, the potential for biomass may be relatively unexploited; nevertheless, biomass in Indonesia does remain among the greatest compared to many competitive countries regarding logistics, rising by virtues of geographic placement and export infrastructure. International demand, which results from carbon pricing and fuel standards, as well as corporate decarbonization commitments, opens immediate export market opportunities for renewable energy. Examples from previous instruments, like the Clean Development Mechanism, show how global incentives can quickly lead to investment in green infrastructure. The results highlight the necessity of export-oriented approaches to induce the energy transition in Indonesia, and possible policy reforms to unlock domestic and international value chains.