Key Points
- Indonesian economy suffered greatly from the COVID-19 pandemic.
- Indonesia plans to improve its economy through the National Economic Recovery program.
- The new program might challenge Indonesia’s goal to reach net-zero emissions by 2060.
The largest economy in Southeast Asia, Indonesia, attempts to uplift its economy. From 2020, the COVID-19 pandemic challenged the economies of countries around the globe. Indonesia, too faced severe impacts from the pandemic. Furthermore, the ceasing of economic activities worldwide resulted in the suspension of economic growth.
Indonesia attempts to uplift its economy to pre-pandemic levels or greater heights through the National Economic Recovery program. However, this economic recovery program depends on the use of fossil fuels. On the other hand, Indonesia should limit fossil fuel usage to remain true to its climate commitments. Indonesia targets reaching net-zero emissions by 2060.
Indonesia should focus on reducing fossil fuel usage and increasing the use of renewable energy to maintain recovery with sustainability. Moreover, the new economic recovery program encompasses 15 strategies to uplift the energy sector. These strategies will likely utilize fossil fuels instead of renewable energy. However, Indonesia’s attempt to recover from the drawbacks of COVID-19 will also benefit the poor households of Indonesia.
The National Economic Recovery program allocates 13.1 trillion to provide electricity for unprivileged households. In contrast to dependence on fossil fuel, for quick recovery, the program also supports the renewable energy source, biodiesel. Furthermore, the recovery program will help install solar panels for private clients.
With the help of the National Economic recovery program and the minimum use of fossil fuels, the Indonesian economy will make a massive comeback. Hence, the country will provide better living conditions for its people and eventually continue supporting Indonesia’s climate commitments.
Reference,
https://www.channelnewsasia.com/commentary/indonesia-energy-fossil-fuel-subsidy-renewable-climate-change-2891186
