Impacts of Emission Reduction Policy on The Energy Structure of Indonesia

Indonesia’s economic growth slowed modestly in 2001. That caused of response to the global economic slowdown, which reduced demand for the country’s export. Indonesia currently holds proven oil reserves of 5 billion barrels and has proven natural gas reserves of 92.5 trillion cubic feet (Tcf). Its is important to world energy markets and also holds a special position in international climate policy. Indonesia an OPEC member and holds large coal and also is the world’s largest liquefied natural gas (LNG) exporter. Indonesia is also vulnerable to climate policy. Indonesia’s carbon emission remain low, but there is concern that an increase in the use of indigenous coal will increase Indonesia’s carbon emissions in the coming years. Besides that its deforestation continues largely unabated. The studies concerning emission reduction policy on Indonesia and implication of global emission trade to Indonesian energy sectors are limited.