IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v18y2025i9p2389-d1650687.html
   My bibliography  Save this article

From Climate Risks to Resilient Energy Systems: Addressing the Implications of Climate Change on Indonesia’s Energy Policy

Author

Listed:
  • Agus Setiawan

    (PT Perusahaan Listrik Negara (Persero), Jakarta 12160, Indonesia)

  • Dea Mardha Mentari

    (School of Business and Management, Institut Teknologi Bandung, Bandung 40132, Indonesia)

  • Dzikri Firmansyah Hakam

    (School of Business and Management, Institut Teknologi Bandung, Bandung 40132, Indonesia)

  • Risa Saraswani

    (School of Business and Management, Institut Teknologi Bandung, Bandung 40132, Indonesia)

Abstract

Climate change has presented significant challenges to Indonesia’s energy sector, increasing vulnerabilities in power generation, infrastructure resilience, and energy security. Rising sea levels, extreme weather events, and increasing temperatures disrupt energy systems, highlighting the urgent need to build resilient energy systems. To support Indonesia’s energy transition, this study addresses a critical gap by providing an integrated analysis of climate resilience, renewable energy policies, and Indonesia’s socio-economic and environmental goals, emphasizing the importance of enabling policies and financial mechanisms. The recommendations mentioned in this study include increasing renewable energy capacity through solar and geothermal projects, modernizing infrastructure to enhance resilience, and adopting decentralized energy systems to reduce dependency on centralized networks. Strengthened governance and stakeholder collaboration are also essential for the successful implementation of energy policies. This study underscores the importance of having comprehensive energy policies to address climate change, promote sustainable development, and help Indonesia achieve its renewable energy targets and long-term goal of net-zero emissions.

Suggested Citation

  • Agus Setiawan & Dea Mardha Mentari & Dzikri Firmansyah Hakam & Risa Saraswani, 2025. "From Climate Risks to Resilient Energy Systems: Addressing the Implications of Climate Change on Indonesia’s Energy Policy," Energies, MDPI, vol. 18(9), pages 1-15, May.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:9:p:2389-:d:1650687
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/18/9/2389/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/18/9/2389/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zahari, Teuku Naraski & McLellan, Benjamin Craig, 2024. "Sustainability of Indonesia's transportation sector energy and resources demand under the low carbon transition strategies," Energy, Elsevier, vol. 311(C).
    2. Mujiyanto, Sugeng & Tiess, Günter, 2013. "Secure energy supply in 2025: Indonesia's need for an energy policy strategy," Energy Policy, Elsevier, vol. 61(C), pages 31-41.
    3. Hakam, Dzikri Firmansyah, 2019. "Mitigating the risk of market power abuse in electricity sector restructuring: Evidence from Indonesia," Utilities Policy, Elsevier, vol. 56(C), pages 181-191.
    4. Halimatussadiah, Alin & Kruger, Wikus & Wagner, Fabian & Afifi, Fachry Abdul Razak & Lufti, Roes Ebara Gikami & Kitzing, Lena, 2024. "The country of perpetual potential: Why is it so difficult to procure renewable energy in Indonesia?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 201(C).
    5. Setyowati, Abidah B. & Quist, Jaco, 2022. "Contested transition? Exploring the politics and process of regional energy planning in Indonesia," Energy Policy, Elsevier, vol. 165(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Obsatar Sinaga & Mohd Haizam Mohd Saudi & Djoko Roespinoedji & Mohd Shahril Ahmad Razimi, 2019. "The Dynamic Relationship between Natural Gas and Economic Growth: Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 388-394.
    2. Tang, Shengwen & Chen, Jingtao & Sun, Peigui & Li, Yang & Yu, Peng & Chen, E., 2019. "Current and future hydropower development in Southeast Asia countries (Malaysia, Indonesia, Thailand and Myanmar)," Energy Policy, Elsevier, vol. 129(C), pages 239-249.
    3. Marcin Wójcik & Pamela Jeziorska-Biel, 2023. "Geographies of Energy: Key Issues and Challenges towards Spatial Justice Concepts," Energies, MDPI, vol. 16(2), pages 1-9, January.
    4. Kong, Zhaoyang & Lu, Xi & Jiang, Qingzhe & Dong, Xiucheng & Liu, Guixian & Elbot, Noah & Zhang, Zhonghua & Chen, Shi, 2019. "Assessment of import risks for natural gas and its implication for optimal importing strategies: A case study of China," Energy Policy, Elsevier, vol. 127(C), pages 11-18.
    5. Acquah-Andoh, Elijah & Putra, Herdi A. & Ifelebuegu, Augustine O. & Owusu, Andrews, 2019. "Coalbed methane development in Indonesia: Design and economic analysis of upstream petroleum fiscal policy," Energy Policy, Elsevier, vol. 131(C), pages 155-167.
    6. Huang, Zhenguang & Li, Chao & Chu, Yican & Gu, Jing & Li, Wenqing & Xie, Jiaxing & Gao, Ge & Wang, Haoyu & Fan, Meiqiang & Yao, Zhendong, 2025. "Potential and challenges for V-based solid solution hydrogen storage alloys," Energy, Elsevier, vol. 316(C).
    7. Andjar Prasetyo & Nana Noviana & Weni Rosdiana & M. Arief Anwar & Hartiningsih & Hendrixon & Bekti Putri Harwijayanti & Mochammad Fahlevi, 2023. "Stunting Convergence Management Framework through System Integration Based on Regional Service Governance," Sustainability, MDPI, vol. 15(3), pages 1-23, January.
    8. Tri Purwaningsih, Vitriyani & Widodo, Tri, 2019. "Applying Tax Rate of 33,33% on Primary Energy in Indonesia," MPRA Paper 91315, University Library of Munich, Germany.
    9. Chang, Ching-Ter & Lee, Hsing-Chen, 2016. "Taiwan's renewable energy strategy and energy-intensive industrial policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 64(C), pages 456-465.
    10. Maulidia, Martha & Dargusch, Paul & Ashworth, Peta & Ardiansyah, Fitrian, 2019. "Rethinking renewable energy targets and electricity sector reform in Indonesia: A private sector perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 101(C), pages 231-247.
    11. Durmaz, Tunç & Acar, Sevil & Kızılkaya, Simay, 2024. "Generation failures, strategic withholding, and capacity payments in the Turkish electricity market," Energy Policy, Elsevier, vol. 184(C).
    12. Muryani Muryani & Khoirun Nisa’ & Miguel Angel Esquivias & Siti Hafsah Zulkarnain, 2023. "Strategies to Control Industrial Emissions: An Analytical Network Process Approach in East Java, Indonesia," Sustainability, MDPI, vol. 15(10), pages 1-17, May.
    13. Yani Fristikawati, 2022. "Legal analysis regarding nuclear power plant and its relation to the protection of environment and society," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(1), pages 290-297, January.
    14. Andre Feliks Setiawan & Tzu-Ling Huang & Chun-Ta Tzeng & Chi-Ming Lai, 2015. "The Effects of Envelope Design Alternatives on the Energy Consumption of Residential Houses in Indonesia," Energies, MDPI, vol. 8(4), pages 1-15, April.
    15. Muhamad Alhaqurahman Isa & Priana Sudjono & Tatsuro Sato & Nariaki Onda & Izuki Endo & Asari Takada & Barti Setiani Muntalif & Jun’ichiro Ide, 2021. "Assessing the Sustainable Development of Micro-Hydro Power Plants in an Isolated Traditional Village West Java, Indonesia," Energies, MDPI, vol. 14(20), pages 1-13, October.
    16. Satria Putra Kanugrahan & Dzikri Firmansyah Hakam & Herry Nugraha, 2022. "Techno-Economic Analysis of Indonesia Power Generation Expansion to Achieve Economic Sustainability and Net Zero Carbon 2050," Sustainability, MDPI, vol. 14(15), pages 1-25, July.
    17. Rahman, Arief & Dargusch, Paul & Wadley, David, 2021. "The political economy of oil supply in Indonesia and the implications for renewable energy development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    18. Rahman, Arief & Richards, Russell & Dargusch, Paul & Wadley, David, 2023. "Pathways to reduce Indonesia’s dependence on oil and achieve longer-term decarbonization," Renewable Energy, Elsevier, vol. 202(C), pages 1305-1323.
    19. Hu, Fei & Zhao, Yong & Huang, Cheng & Cui, Shichang & Ding, Qiang & Li, Yuanzheng, 2024. "Market power detection and mitigation measures for the spot electricity market based on bidding equilibrium," Energy, Elsevier, vol. 305(C).
    20. Simona Bigerna & Carlo Andrea Bollino & Maria Chiara D’Errico & Paolo Polinori, 2023. "A new design for market power monitoring in the electricity market. A simulation for Italy," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(1), pages 285-317, April.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:18:y:2025:i:9:p:2389-:d:1650687. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.