Encourage the Just Transition in North Sumatra

press release

Medan, 30 July 2024 –Transitioning from fossil energy to renewable energy is the primary way to reduce the impact of the urgent climate crisis. It’s crucial to consider justice in implementing this energy transition to ensure equitable benefits for all parties.

In promoting the just energy transition, preparing for transformation must be a priority to create a more sustainable and highly competitive community economy. For this reason, the Institute for Essential Services Reform (IESR), together with the Clean, Affordable, and Secure Energy (CASE) for Southeast Asia Project, held an energy transition workshop for civil society organizations (CSOs) and the media in North Sumatra on Wednesday (31/7/2024).

Agus Tampubolon, Program Manager of CASE, IESR, mentioned that in the energy transition process in Indonesia, CSOs can play a role as agents of advocacy, education, and community mobilization to support clean energy. In addition to CSOs, the media landscape also plays a vital role in accelerating the energy transition at the national and global levels. The media is the primary channel through which information about the urgency and benefits of the energy transition can be disseminated. Not only that, it shapes public opinion. Media coverage can significantly influence public sentiment towards renewable energy sources.

“Unfortunately, based on the Media Articles Report on Energy Transition in Indonesia’s Electricity Sector in 2020-2022 published by CASE Indonesia and IESR, the issue of energy transition is still mostly circulated among stakeholders at the national level, such as the central government, large industries, large financial institutions, and so on. This also indicates that the issue of energy transition has not yet become a major discussion at the local level. For this reason, we realize the importance of this workshop as a forum for discussion and education in voicing the issue of equitable energy transition,” Agus said.

Martha Jesica, Coordinator of Social, Policy, and Economic Research, IESR, explained that based on the results of the IESR survey in 2024, at least four aspects are most important to the public in an equitable energy transition. First, the availability of energy that is equitable and reaches all communities. Second, the utilization of clean and renewable energy. Third, creating new job opportunities. Fourth, involving all levels of society.

“In encouraging a just energy transition in the midst of oil and gas production in North Sumatra, it’s important to enhance the capabilities of different stakeholders such as the government, media, and society to fulfill their respective roles in prioritizing a just energy transition. For instance, the government should be able to assess the technical potential of renewable energy, the media should have the capacity to critique policies related to renewable energy, and the community should understand the environmental impact of fossil fuels. Uniform expertise will improve energy planning discussions by taking into account a variety of interests,” Martha said.

Meanwhile, Tarsudi, Head of the Economic and Natural Resources Division, Development Planning, Research and Development Agency (Bappelitbang) of North Sumatra Province, stated that based on data from the PLN UID North Sumatra Statistical Book 2022, new renewable energy (NRE) contributes 40.06 percent to the total electricity energy mix in the region, while coal contributes 32.89 percent, gas contributes 23.23 percent, and oil contributes around 3.67 percent.

“To encourage sustainable energy utilization, there are five policy directions for energy and energy resources in North Sumatra. First, optimizing and strengthening the use of new renewable energy in supporting all sectors for employment, increased income and added value. Second, ensuring the provision of energy for all levels of society, especially in areas that have not been reached by PLN electricity. Third, supporting environmental conservation in order to fulfill the target of the Nationally Determined Contribution (NDC) document in the energy sector. Fourth, community empowerment in energy management and utilization at the local level, such as energy independent villages. Fifth, strengthening human resources and mastering technology in NRE management,” said Tarsudi.

Karlo Purba, Head of the Industry Division of the Trade, Energy and Mineral Resources Agency of North Sumatra Province, emphasized the importance of civil society’s role in the energy transition process. Civil society can plan, implement, and monitor the energy transition based on Law No. 30 of 2007 on Energy and North Sumatra Provincial Regulation No. 4 of 2022 on the North Sumatra Provincial General Energy Plan (RUED-P) 2022-2050. Community participation in the RUED is carried out by providing ideas, data, information, and activities.

“With this regulation, it is expected that the people of North Sumatra can actively participate in the energy transition towards a more equitable and sustainable use of renewable energy. This is an important step to ensure that the energy transition not only reduces the impact of the climate crisis, but also provides equitable benefits for all levels of society,” Karlo added. 

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