Indonesia's Energy Transition Lags Behind Malaysia, Vietnam, and Thailand

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Adi Ahdiat 08/08/2023 17:20 WIB

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According to the World Economic Forum (WEF), Indonesia's energy transition performance lags behind that of Malaysia, Vietnam, and Thailand.

Energy Transition Index Score in Southeast Asian Countries (2023)

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Indonesia's Energy Transition Lags Behind Malaysia, Vietnam, and Thailand

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Energy Transition Index Score in Southeast Asian Countries (2023)

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Indonesia's energy transition performance lags behind Malaysia, Vietnam, and Thailand, according to the World Economic Forum (WEF)'s report, *Fostering Effective Energy Transition 2023*.

The WEF assessed the energy transition performance of 120 countries based on over a dozen indicators, including the level of clean energy use, carbon emission reduction, infrastructure readiness, regulatory frameworks, and each country's financial capacity to drive energy transition.

The assessment results were formulated into an Energy Transition Index (ETI) with a score ranging from 0-100. An ETI score of 0 indicates very poor performance, while 100 indicates excellent performance.

Using this method, Malaysia achieved the highest ETI score in Southeast Asia in 2023, at 61.7. Vietnam, Thailand, and Indonesia followed, with scores detailed in the graph [graph not included in this translation].

Malaysia's relatively high score is attributed to its strong energy supply resilience and highly diversified energy mix.

Vietnam received a good score due to its substantial investment in renewable energy, approximately 1% of its gross domestic product (GDP).

Thailand's score was only slightly lower than Indonesia's. However, Thailand scored higher due to better preparedness in regulations, investment, and energy transition infrastructure.

According to the WEF, Indonesia's energy transition performance faces several challenges, particularly in regulation and investment.

"Without direct subsidies for renewable energy (in Indonesia), the current tariff mechanism does not allow renewable energy to compete fairly with fossil fuel-based infrastructure," stated the WEF in its report.

"Furthermore, gaps in planning and policy, as well as a lack of transparency, add complexity for investors," the WEF added.

The WEF provided several recommendations to improve Indonesia's energy transition performance, including:

* Implementing a renewable energy tariff policy;
* Removing regulatory barriers to facilitate renewable energy companies;
* Accelerating the growth of renewable energy infrastructure; and
* Enhancing transparency in renewable energy planning and financing.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Indonesia's Energy Transition Lags Behind Malaysia, Vietnam, and Thailand

Indonesia's Energy Transition Lags Behind Malaysia, Vietnam, and Thailand

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Indonesia's Energy Transition Lags Behind Malaysia, Vietnam, and Thailand

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