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A master's thesis from Aalborg University
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A Resource Curse for Renewables? A Case Study of the Indonesian Solar Energy Sector

Author

Term

4. term

Publication year

2017

Submitted on

Pages

59

Abstract

Indonesien har i mange år været afhængig af udvinding af fossile brændsler. Med en voksende befolkning og et stigende internationalt pres for at omstille til vedvarende energi har regeringen iværksat flere grønne initiativer. En stor del af det nye potentiale ligger i solenergi baseret på fotovoltaiske (PV) celler. Dette studie undersøger, om den fremvoksende sol-PV-sektor er ramt af en “ressourceforbandelse” – når rige naturressourcer undergraver økonomisk stabilitet og god styring. Med en kvalitativ tilgang gennemgås litteratur om ressourceforbandelsen i fossile sektorer, og der identificeres tre advarselsindikatorer: hollandsk syge (ressourceboom, der svækker andre dele af økonomien), rent seeking (indtægt via politisk indflydelse frem for produktiv aktivitet) og økonomisk volatilitet (ustabil vækst og indtægter). Anvendt på sol-PV-sektoren findes der ingen tegn på en aktuel forbandelse. Der er dog tydelige tegn på en mulig fremtidig forbandelse, hvis problemer fra andre energisektorer – især korruption og fragmenteret bureaukrati – ikke fjernes fra solsektoren. Studiet peger på behovet for stærk styring og institutionelle reformer, så soludbygningen understøtter bred og stabil udvikling.

Indonesia has long relied on fossil fuel extraction. As its population grows and global pressure to shift to renewable energy rises, the government has launched several green initiatives. Much of the new potential comes from solar power using photovoltaic (PV) cells. This study examines whether the emerging solar PV sector is experiencing a “resource curse”—when natural resource wealth undermines economic stability and governance. Using a qualitative approach, it reviews literature on the fossil fuel resource curse and identifies three warning indicators: Dutch disease (resource booms that weaken other parts of the economy), rent seeking (income gained through political influence rather than productive activity), and economic volatility (unstable growth and revenues). Applying these indicators to the solar PV sector reveals no evidence of a current curse. However, there are clear signs of a possible future curse if problems seen in other energy sectors—especially corruption and fragmented bureaucracy—are not eliminated from the solar sector. The study highlights the need for strong governance and institutional reforms to ensure solar expansion supports broad, stable development.

[This abstract was generated with the help of AI]