Description
The Asian Development Bank wanted a qualitative economic assessment of its Affordable and Sustainable Energy Transition (ASET) policy-based program in Indonesia. ASET includes two reform areas: (i) policies and a regulatory framework for the clean energy transition, and (ii) improvements to sector governance and financial sustainability. The economic assessment would serve as justification for the program, as part of the review and approval process.
Service Provided
DHInfrastructure summarized Indonesia's energy sector challenges and progress on energy transition initiatives, based on a review of ADB and external documents. We adapted ADB's draft policy matrix for the ASET Program to develop descriptions of the transmission mechanisms by which the proposed reforms were likely to impact Indonesia's economy. We prepared a qualitative summary of the possible benefits, costs, and impacts of the reforms. Possible benefits included more clean energy investments, emissions reduction and related health benefits, employment opportunities, potential for lower electricity prices, GDP benefits, greater energy security, more gender equity, better sector transparency on sustainability, better risk mitigation, poverty reduction, and conservation.