Contents lists available at ScienceDirect Renewable and Sustainable Energy Reviews journal homepage: www.elsevier.com/locate/rser Rethinking renewable energy targets and electricity sector reform in Indonesia: A private sector perspective Martha Maulidia a, ⁎ , Paul Dargusch a , Peta Ashworth b , Fitrian Ardiansyah c a School of Earth and Environmental Sciences, The University of Queensland, Brisbane, Australia b School of Chemical Engineering, The University of Queensland, Brisbane, Australia c IDH The Sustainable Trade Initiative Indonesia, Jakarta, Indonesia ARTICLE INFO Keywords: Energy in Indonesia Private sector investment Renewable energy ABSTRACT Renewable energy targets announced in 2014 present an opportunity to reform Indonesia's electricity sector which is dominated by fossil fuels. In this paper we discuss Indonesia's current renewable energy policies and future outlook for achieving the targets. This paper serves as a literature review of Indonesia's changing energy policy landscape, as part of a broader research investigating renewable energy targets and the role of the private sector. Despite Indonesia's wealth of renewable energy resources, numerous studies have identifed multiple constraints to the development of renewable energy, including geographical, institutional and investment fac- tors. Infuential groups are calling for the Indonesian Government to put in place a clear policy framework that facilitates private sector investment. Therefore, interventions to facilitate investment in energy infrastructure in Indonesia must address the monopolised power market system that oversees a changing, complex malaise of electricity pricing regulations which make investment risky and uncertain. This study will enrich the existing literature on renewable energy policy which emphasises the importance of engaging the private sector. It is based on a rigorous qualitative assessment of Indonesia's changing policy that afects the progress of the re- newable energy targets. The lessons from Indonesia's experience may provide insights for policymakers notably in developing countries.Keywords: energy in Indonesia, private sector investment, renewable energy 1. Introduction In 2014, Indonesia ambitiously revised its renewable energy targets (RET) to 23% by 2025 (MRET) and 31% by 2050 (LRET) from a base of only 6% of the current energy mix (2014) [1]. Achieving such targets will require clear policy and regulations, a strict mandate and improved coordination among institutions, not to mention billion dollars of in- vestment. As a result of relentless economic and population growth, rising living standards and rapid urbanisation, Indonesia's energy de- mand is expected to continue to increase [2]. https://doi.org/10.1016/j.rser.2018.11.005 Received 21 February 2018; Received in revised form 12 October 2018; Accepted 3 November 2018 Abbreviations: AFOLU, Agriculture, Forestry, and Other Land Use; ASEAN, Association of Southeast Asian Nations; BAKOREN, Badan Koordinasi Energi Nasional (National Energy Coordination Agency); BAPPENAS, Badan Perencanaan Pembangunan Nasional (National Development Planning Agency); BPP, Biaya Pokok Produksi (Main production cost of electricity generation); CO2e, Carbon Dioxide equivalent; DEN, Dewan Energi Nasional (The National Energy Council); DKE, Dana Ketahanan Energi (Energy Resilience Fund); EBTKE, Energi Baru dan Terbarukan dan Konservasi Energi (New and Renewable Energy and Energy Conservation), Directorate General under MEMR; FIT, Feed-in Tarif; GDP, Gross domestic product; GHG, Greenhouse Gas; GT, Giga Tonne; GW, Gigawatt(s); IBEKA, Institut Bisnis dan Ekonomi Kerakyatan (People-Centered Business and Economics Institute), a nonproft organization; IEA, International Energy Agency; INDC, Intended Nationally Determined Contributions; IPP, Independent Power Producer; LCOE, Levelised cost of electricity; KEN, Kebijakan Energi Nasional (National Energy Policy); KUBE, Kebijakan Umum Bidang Energi (General Policy on Energy); MEMR, Ministry of Energy and Mineral Resources; MOF, Ministry of Finance; MRET, Medium-term renewable energy target; MW, Megawatt(s); MWe, Megawatt(s) equivalent; LPG, Liquefed Petroleum Gas; RET, Long-term renewable energy target; MOPS, Mean of Platts Singapore; NDC, Nationally Determined Contributions; NEPIO, Nuclear energy program implementing organization; OPEC, Organisation of the Petroleum Exporting Countries; P2EBT, Tim Percepatan Pengembangan Energi Baru Terbarukan (Task force for accelerating the development of new and renewable energy); PLN, Perusahaan Listrik Negara (State Electricity Company); PIT, Program Indonesia Terang (Bright Indonesia Program); PV, Photovoltaic; R&D, Research and Development; REPELITA, Rencana Pembangunan Lima Tahun (Five-year national development plan); RES, Renewable Energy Sourced; RET, Renewable energy target (s); RUED, Rencana Umum Energi Daerah (Regional/Provincial General Plan on Energy); RUEN, Rencana Umum Energi Nasional (National General Plan on Energy); RUPTL, Rencana Usaha Penyediaan Tenaga Listrik (Power Supply Business Plan); SOE, State-owned enterprise; UNFCCC, United National Framework Convention on Climate Change ⁎ Corresponding author. E-mail address: martha.maulidia@uq.net.au (M. Maulidia). Renewable and Sustainable Energy Reviews 101 (2019) 231–247 1364-0321/ © 2018 Elsevier Ltd. All rights reserved. T