ADVANCING RENEWABLE ENERGY POLICY IN A FRACTURED GLOBAL ECONOMY: A NEW STRUCTURAL ECONOMICS APPROACH FOR DEVELOPING NATIONS

Abstract

With the rapid evolution of global energy transition, emerging economies are under increasing pressure to upgrade the industrial structures and assert strategic position in global value chains. Indonesia with rich natural resources approaches a crucial moment to prevent the mid-income trap and technological stagnation. This paper analyses the New Structural Economics (NSE) as a model for industrial transformation through the experiences of Indonesia in the development of downstream resource-based industries for technological transfer and regional cooperation in energy trade. Using qualitative content analysis of policy documents, expert statements, regional cooperation frameworks, and institutional arrangements, the paper analyses regulatory coherence, public participation, and inter-institutional coordination in the country. Empirical evidence, coupled with the nickel export ban and the involvement in the Asean Power Grid serve to show the potential and limitations of NSE principles into practice. Results underscore the significance of a standard body and regulation, public trust, the inclusiveness of human capital development, and sustainability assurance. Drawing from the analysis, the research suggests that an integrated, pro-active and participatory policy approach based on NSE may help Indonesia take a leading role in the regional energy transition and competitive industrial future.