Energy Transition Momentum as a Driver for Economic Growth

Jakarta, October 31, 2024 – In the 2023 Conference of the Parties (COP) in Dubai, countries agreed to take more robust climate action, one of which is by doubling energy efficiency and tripling renewable energy capacity (Double Down, Triple Up). This initiative has attracted global funding interest in low-emission infrastructure and renewable energy development.

Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR) in the Indonesia Energy Transition Dialogue (IETD) 2024 media briefing forum stated that in the last ten years, Indonesia has wasted the momentum for accelerating renewable energy. This has resulted in one of Indonesia’s renewable energy mixes being far below the target set by the government itself.

“The presence of a new Indonesian government is an important momentum that will determine the achievement of various targets such as Indonesia Emas 2045, where Indonesia aspires to escape the middle income trap. Low-carbon development and energy transition can be a breakthrough to drive economic growth and must be done because the longer we delay, the greater the costs we will have to spend later,” said Fabby.

Deon Arinaldo, Manager of the IESR Energy System Transformation Program highlighted the energy self-sufficiency program promoted by President Prabowo Subianto. There is a great opportunity and potential to realize the program using renewable energy.

“Indonesia has abundant renewable energy potential and currently it has not been optimally utilized, reflected in the small number of renewable energy mixes in the national energy mix, which is around 13 percent,” said Deon.

Deon added that it is important for the new government to create policies that show the direction of Indonesia’s energy transition so as to provide optimism and a positive signal to various parties who want to collaborate with Indonesia.

Arief Rosadi, Manager of the IESR Climate and Energy Policy Program, added that currently Indonesia has a great opportunity to take the initiative to lead global south countries in their energy transition cooperation.

“Indonesia has a good record, one of which is in Indonesia’s leadership in ASEAN in 2023, Indonesia carried the energy transition as one of the main focuses of the Summit, and for the first time regionally ASEAN countries discussed the energy transition,” said Arief.

To encourage discourse and policy direction on the energy transition in Indonesia, the Institute for Essential Services Reform (IESR), Indonesia Clean Energy Forum (ICEF) in collaboration with the Ministry of Energy and Mineral Resources (ESDM) will hold the Indonesia Energy Transition Dialogue (IETD) forum. IETD carries the spirit of becoming a high-level dialogue forum for policy makers, business actors, experts, and the public to exchange ideas on the energy transition in Indonesia. This event aims to demonstrate Indonesia’s progress in becoming a global leader in sustainable energy. Participants can register via ietd.info.

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