Policy statements, policy measures, and implementation programmes

Furthermore, policy statements, measures, and implementation programmes from Governmental and Non-governmental agencies collected through document review (Sub-section 4.3.1) (internal and external desk studies) and fieldwork (Sub-section 4.3.2) (observations, meetings, and interviews), were also analysed using language, object, and act analyses (LOA).

Only a proportion of the results intended by policy makers through policy statements, policy measures, and implementation programmes are achieved.

LOA has identified that these are potentially caused by disconnects between policy makers’ intention and the differring perceptions of implementers and expectations of the target groups. These disconnects are given as summaries in Table 5-5 (for policy statements), Table 5-6 (for policy measures), and Table 5-7 (for implementation programmes).

At the national scale, through the Presidential Decree 2006, the Indonesian Government has put in place a policy on developing biofuels and geothermal energy (5% of energy mix should come from biofuel and 5% from geothermal by 2025). The Indonesian Government has also targeted increase of electrification from 64% in 2009 to 95% by 2025 (Table 5-5). In Aceh, through the Aceh Green policy statement, financed public-private partnerships for infrastructure, urban development, and clean energy are seen as means to achieve sustainable livelihoods for the people of Aceh. Where implementers concentrate on managing distribution and energy security for integrated sustainable development objectives, target groups’ expectations are basically around equal and reliable access to electricity and liquid fuels.

Indonesia’s new Electricity Law has also shifted opportunities for regional and local governments, cooperatives, and private entities to generate power then sell them to PLN. ecurity and distribution management. Energy regulatory policies including tariffs are determined by the Ministry of Energy and Mineral Resources (ESDM). Meanwhile, renewable energy resources development are under the responsibility of the Ministry of Forests and the Ministry of Agriculture. Through the National Energy Council which was established in 2007 (Table 5-6), renewable energy policies at national scale are coordinated between the aforementioned three ministries. Since 2009, through the power purchase obligation, PLN is required to purchase electricity from small-scale (up to 10MW capacity) renewable energy generated by power generator (including cooperatives, local communities, and private businesses). These are all intended by policy makers to increase confidence in the renewable energy sector.

However, difficult local situations are seen by implementers to potentially create barriers to the policy goals. Thereby they perceive that there should be commitments of support made available by both national and provincial

government to develop local programmes and initiatives in renewable energy.

Meanwhile, at the receiving end, the target sectors’ expectations largely lie on reliable access to electricity and liquid fuels specifically.

A large number of projects on renewable energy in Indonesia (including some local initiatives in Aceh) are developed through the support of international donors and development aid (Table 5-7). These are intended by policy makers independent producers to enter the market whilst empowering communities to develop their local power generation, and thereby reducing the Government’s burden of providing subsidies for fossil fuels. As financing is Indonesia’s biggest gaps in developing renewable energy systems accross policy statements, policy measures, and implementation programmes, subsidies to fossil fuel remains to be the cause for distortion in the energy market in Indonesia until the present day. Translated into Aceh as one of Indonesia’s province, a policy subsidy reform must take place which allows government budget to provide more support towards the renewable energy development. Policies on renewable energy pricing and power purchase obligations are intended by policy makers to open market for private entities, but implementors may not accurately translate these into policy measures, resulting in less reliable and robust financial incentives at regulatory levels.

In summary, within the scope of Aceh provincial and Indonesian national policy staments, policy measures, and implementation programmes, there is a general tendency for mis-matches between the results intended by policy makers, perceptions of implementers, and the expectations of target groups. The differing levels of breadth and depth of intentions, perceptions, and expectations from each policy statement, policy measures, and implementation programmes are seen to be the major contributor to the areas of disconnects amongst the three.

Table 5-5: Language, object, and act analyses of policy statements Description of existing

policy statements

Level Target sector Intended results by policy makers

Perceptions of implementers

Expectations of target groups Presidential Decree No. 4 of

2010 and No. 5 of 2006 on National Energy Policy and Blueprint of National Energy Management 2005-2025 aims for securing only the supply side.

National Energy Economy

• Increased oil production

• Coal power plant development

• Bioenergy development

• Route to achieve Aceh Green will integrate

climate change mitigation

• Environmental sustainability through sustainable

livelihoods for the people of Aceh.

• Financed public-private partnerships for

infrastructure, urban development, clean energy, integrated land use and sustainable agriculture, Policies / Budget Planning Priorities document

(Kebijakan Anggaran Umum / Plafon Prioritas Anggaran

• Mid-term Development Plan containing infrastructure management supporting energy resource development

• Financially supported commitment of

planning framework

• Outline of state of economy, revenue, and expenditure

• Development policies and priorities

Table 5-6: Language, object, and act analyses of policy measures Description of existing

policy measures

Level Target sector Intended results by policy makers

National Energy • Established National Energy Council

• Constructed National and Regional Energy Master Plans

• Established rules for energy diversification and conservation

• Clarified central and local government existence of real and committed support for

Regulation No. 26 of 2006 National Electricity • Licensed energy generators must ensure energy supply for its operational region

• Unrealistic targets set by national

government

• Difficult local situations create barriers to goals of policy

• Reliable access to electricity

• Reliable access to liquid fuels

Presidential Decree No. 5 of 2006

National Energy Environment

• Energy diversification

• Energy conservation

• Renewable energy

• Fossil fuel exploration

• Environmental impact

• Financially supported commitment of

• Promoted renewable • Financially supported • Reliable access to

Resources Ministerial

National Green Energy Social

development

• Regional-based energy development

• Energy infrastructure development

• Community empowerment

• Financially supported commitment of

• Authority of provincial government for

• Involvement of local human resources

• Independent decision making in extraction and utilisation of Aceh’s natural resources

• Knowledge transfer in data acquisition and

• Independent decision making in extraction and utilisation of Aceh’s natural resources

Table 5-7: Language, object, and act analyses of implementation programmes

Important outputs targeted by initiators

Perceptions of implementers Expectations of target groups Improved energy

efficiency of brick kilns

Provincial Energy source for brick kilns (rice husk)

Fitting firing holes dampers

• Higher productivity and economic competitiveness of micro hydro projects

Provincial Energy Environment Economy Community

• More secured energy source

• Reduced emissions from using renewables

• Community ownership

• Showcase of community based project

• Demonstration of micro renewable reliability

• Field training for local community and educational institution

• Recreational site

• Reliable source

• More secured energy source

• Reduced emissions from using renewables

• Community ownership

• Showcase of local business based project

• Demonstration of micro renewable reliability

• Field training for local community and educational