Jakarta, 25 April 2025

The Clean, Affordable and Secure Energy for Southeast Asia (CASE) programme, in collaboration with Bappenas, held a Focus Group Discussion (FGD) to consult on two critical draft studies: the role of electricity subsidies and a financing framework for Indonesia’s energy transition.

Attended by 60 representatives from government, CSOs, academia, and the private sector, the event explored the sustainability of current electricity subsidies and the need for targeted reform. Findings showed that under a business-as-usual scenario, subsidy needs could reach IDR 312.17 trillion by 2045, versus IDR 182.14 trillion under a renewable-driven pathway. Participants discussed phasing out blanket subsidies, improving targeting through DTKS, and introducing dynamic tariffs.

The financing framework session addressed the challenges of mobilising the USD 1,108 billion investment needed for Indonesia’s Net Zero target by 2060. Recommendations included feed-in tariffs, investment grants, and enhanced project readiness to improve bankability.

“We would like to express our appreciation for the support provided by the CASE project implemented by GIZ and IESR. This initiative plays an important role in helping us identify strategic interventions that support Indonesia’s energy transition efforts,” said Taufiq Hidayat Putra, Director of Electricity, Telecommunications and Informatics (KTI), Bappenas acknowledging CASE’s contribution to national energy transition planning.