. Without aggressive efforts to reduce the use of fossil fuels and increase cleaner and renewable energy capacity, Indonesia’s COVID-19 recovery programme could actually create more problems.Indonesia’s support for the use of fossil fuels is reflected by the allocated funds, reaching about 8 per cent of the total National Economic Recovery budget.
In contrast, the National Economic Recovery programme only specified a subsidy for one type of renewable energy, biodiesel. A recent example is a surge in world oil prices that reached US$100 per barrel as an effect of Russia’s invasion of Ukraine. This rise has caused the Indonesian government to dither about allocating funds for gasoline and LPG subsidies. Consequently, the surge in oil prices has increased the prices of other goods and services.
The government needs to take advantage of environmentally friendly technologies and renewable energy with the potential to promote sustainable development.