Ridwan Kamil Invites IESR to Share Insights on the Draft Bill on Renewable Energy

Bandung, 26 March 2021 — Elected as the General Chairperson of the Regional Association for Producing Oil and Gas and Renewable Energy (ADPMET) for the term of 2020-2025, the Governor of West Java, Ridwan Kamil, clearly stated in his inauguration that ADPMET would focus on developing renewable energy or waste-based biofuel, animal and plant excrement.

The seriousness of ADPMET regarding renewable energy development and energy transition was shown by Ridwan Kamil’s initiative to invite parties who consistently utter these two issues to discuss the Draft Bill on New and Renewable Energy (RUU EBT) at the West Java Governor’s office (26/3). Invited, the Institute for Essential Services Reform (IESR) provided views and exposures related to renewable energy and the RUU EBT.

Fabby Tumiwa, Executive Director of IESR, explained that, although the energy transition movement has globalized significantly and many countries in the world such as the European Union, India, China, Chile are developing renewable energy massively, Indonesia still records very low achievements in terms of energy mix targets renewable. Of the 23 percent in 2025, Indonesia was only at 11.5 percent at the end of 2020.

“In 2020, there will only be an additional 187.5 MW of installed renewable energy generating capacity. It means that it barely grows about 1.8 percent annually. Very slow, “he explained.

Meanwhile, based on the results of the latest IESR study on the technical potential of PLTS entitled “Beyond 207 Gigawatts: Unleashing Indonesia’s Solar Potential”, Indonesia has the potential for solar energy that far exceeds the official figures released by the Indonesian government.

“Indonesia has the potential for solar PV (photovoltaic) to reach 3,000 – 20,000 GWp. This potential is 16 to 95 times higher than the official estimated potential data released by the Ministry of Energy and Mineral Resources, which was 207 GWp (ESDM, 2016). If this technical potential is utilized, it can produce electricity of 27,000 TWh per year, almost 100 times the current electricity demand, “he said.

In his explanation, Fabby also explained the technical potential that West Java province possesses, based on IESR calculations using geospatial data by identifying suitable land for solar PV. Mapping results show that with a maximum area of ​​16,746 km2, West Java has a maximum technical potential for solar power of 687 GWp.

Such an immense potential of renewable energy should be a luminary in the RUU EBT. As it is also clearly written as a basis for consideration of the drafting of the RUU EBT, energy transition needs to be accelerated towards a sustainable national energy system. However, the RUU EBT, which is still being discussed in the DPR, includes elements of new energy. It means that this bill does not focus on supporting renewable energy only. The definition of new energy is energy produced by new technology with non-renewable or renewable energy sources (PP 79/2014) such as nuclear, fossil energy processing such as coal gasification, and also liquefied coal. It implied that the RUU EBT is still dominated by non-renewable energy, therefore, it is against the principles of the sustainable energy system itself. 

IESR views that Indonesia needs a law that focuses on supporting renewable energy. Indonesia can refer to India or China, which already has a Renewable Energy Law so that their renewable energy development is growing rapidly.

“The existence of the Renewable Energy Bill will show the seriousness of the government in developing renewable energy so that it will give a positive signal to stakeholders, especially investors. Currently, regulations regarding renewable energy are at the level of weaker regulations, such as Presidential Regulations, Ministerial Regulations so they are vulnerable to changes and preferences of sectoral ministers, “added Fabby.

Furthermore, in his explanation, Fabby encouraged the EBT Bill to specifically state policies that support renewable energy. Firmness in this policy will be beneficial in creating a market/demand for renewable energy, setting a viable renewable energy price, providing incentives/support for renewable energy exploitation, providing renewable energy development funds, establishing renewable energy governance and institutional arrangements, and increasing community participation in renewable energy development.

Responding to IESR’s explanation, Ridwan Kamil expressed his gratitude and immediately appointed the West Java ESDM Office to explore the technical potential of renewable energy in West Java for better development.


The Government of Jambi signed an MoU with IESR to accelerate energy transition

Committed to Achieves Regional Renewable Energy Mix Target 2025 and Boosts Energy Transition, Jambi Government Signed MoU with IESR

Jambi has a regional renewable energy mix target of 24 percent in 2025 and 40 percent in 2050. This target has been stipulated in local regulation, Perda No. 13 of 2019, concerning the 2019-2050 Regional Energy General Plan (RUED). The target number of the Jambi renewable energy mix is larger than the national, which are 23 percent and 31 percent in 2025 and 2050 respectively.  To overcome challenges, such as the different understanding of energy transition definition, the Jambi government, through the Department of Energy and Mineral Resources (ESDM), signed the MoU with Institute for Essential Services Reform (IESR). Moreover, increasing human resources capacity and enabling supporting infrastructure are also Jambi ESDM’s need to develop renewable energy.

“The potential for renewable energy in Jambi is quite impressive. However, it is not yet a priority, so we should start to develop it with a correct understanding of the energy transition. For this reason, we are working with IESR to define the right direction for maximum results,” said the Head of the Jambi ESDM, Harry Andria, at the Signing of the MoU between the Jambi Province ESDM Service and IESR (22/3 ).

Harry thought that understanding the definition of the energy transition at the regional executive and legislative levels will help in implementing the programs to achieve regional renewable energy targets. 

Agreed,  Fabby Tumiwa, Executive Director of IESR on the same occasion, also stated that the energy transition has become a phenomenon that is continuously being adopted by many countries in the world. They are committed to fulfilling the Paris Agreement to keep the earth’s temperature less than 2 ° C. 

“Energy transition is unnegotiable. Accelerating renewable energy requires the commitment of all stakeholders, both regional leaders, policymakers, and the affected communities. Instrumental collaboration is needed to achieve the RUED target and build a joint consensus for the application of renewable energy,” he said. 

Fabby also views that the implementation of the energy transition and the achievement of renewable energy targets in Jambi will be advantageous for Jambi in the future. Jambi will continue to develop its economies, such as in the industrial, business, agriculture, fishery, and tourism sectors. It will require more energy, especially renewable energy.

IESR will provide technical assistance to the Jambi Government in increasing the utilization of renewable energy potential, energy conservation, and energy transition. The event was closed by virtually signing the MoU document between the Jambi ESDM Agency and the IESR.