Policy flip-flops, overcapacity dull Indonesia’s ambitious solar energy goals

[JAKARTA] Regulatory flip-flops and overcapacity woes are straining Indonesia’s ambitious plans to scale up its abundant solar resources to decarbonise the energy sector.

Industry experts lament that inconsistent regulations on the back of policy U-turns are a major obstacle, further dampening investor confidence and hindering the country’s goal of reaching its net-zero target.

Fabby Tumiwa, executive director of Jakarta-based think tank Institute for Essential Services Reform (IESR) told The Business Times: “The government often flip-flops on its policies, and the implementation of regulations is uncertain. The rules often change and have confused people.”