ORIGINAL RESEARCH article
Front. Environ. Sci.
Sec. Environmental Policy and Governance
This article is part of the Research TopicTerritorial Transitions to Sustainability: Ground-Breaking Strategies Across Urban, Rural, and Regional ContextsView all 4 articles
Institutional Frameworks for Economic Governance of Hydropower Resources in Indonesia: Implications for Policy and Sustainable Rural Development
Provisionally accepted
- 1Graduate School, IPB University, Bogor, Indonesia
- 2Study Program of Natural Resources and Environmental Management, Graduate School, IPB University, Bogor, Indonesia
- 3Department of Forest Management Science, Faculty of Forestry and Environment, IPB University, Bogor, Indonesia
- 4Department of Environmental and Resource Economics, Faculty of Economics and Management, IPB University, Bogor, Indonesia
- 5Department of Communication and Community Development Sciences, Faculty of Human Ecology, IPB University, Bogor, Indonesia
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This study examines the institutional framework of economic governance for hydropower resources in Indonesia, with a focus on the interplay between national and subnational governance structures. Data were obtained from national and regional policy documents on hydropower, renewable energy, and natural resource management; organizational structures and actor roles spanning government, private sector, and community stakeholders; meeting minutes, cooperation agreements, and institutional performance reports. These document-based insights were complemented by data from in-depth interviews and focus group discussions (FGDs) with key stakeholders, including government officials, hydropower operators, community leaders, and civil society organizations. The Institutional Analysis and Development (IAD) framework was applied to map action arenas, actor networks, and rules-in-use, in conjunction with a content analysis of relevant policy texts. The results reveal a multi-layered institutional configuration characterized by overlapping mandates, fragmented coordination, and gaps in cross-sectoral integration. While formal frameworks prescribe mechanisms for resource allocation, revenue distribution, and environmental safeguards, their practical implementation is hindered by limited stakeholder engagement and weak enforcement. The study's institutional mapping offers a critical basis for strengthening coordination mechanisms, clarifying actor mandates, and enhancing participatory governance to achieve more coherent and equitable hydropower resource management in Indonesia.
Keywords: economic governance, Hydropower governance, institutional frameworks, Renewable energy policy, Rural Development
Received: 05 Nov 2025; Accepted: 15 Dec 2025.
Copyright: © 2025 Suswantoro, Nurrochmat, Hidayat and Sjaf. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
* Correspondence: Endro Suswantoro
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