A PESTLE Policy Mapping and Stakeholder Analysis of Indonesia’s Fossil Fuel Energy Industry

Abstract

Indonesia has a long-standing history of reliance on fossil fuels, which reflects the country’s vast reserves of crude oil, natural gas, coal, and other resources. Consequently, the potential of Indonesia’s fossil energy industry is both complex and multi-layered. This paper aims to carry out a policy mapping and stakeholder analysis of Indonesia’s fossil energy industry, adopting a PESTLE (Political, Economic, Social, Technology, Legal, and Environmental) approach, which allows identification of multidisciplinary stakeholders and underlying relationships across the sector. The outcomes from the analysis indicated the importance of strategically aligning the stakeholders’ policies to the needs of other relevant stakeholders. Furthermore, the central and regional governments need to work closely in order to better sense if there is a change in the policy, be receptive to anticipating the potential impacts, and to avoid policies being executed in an isolated manner.