The technical potential of solar energy in Central Java reaches 193-670 GWp with the potential for solar around 285-959 TWh per year. This has become an attraction for the commercial and industrial sectors to install solar power plants. The government has also tried to accommodate the need for rooftop PV mini-grid installations with several strategies including a clause to reduce parallel capacity costs for industrial customers from 40 hours to 5 hours per month.

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As of August 2021, there have been 4,133 users of solar power plants (PLTS) and based on this data, the largest PLTS are in West Java (9 MWp), Jakarta (6.99 MWp), Central Java and DIY (5.88 MWp). The government has also done accommodations by lowering the parallel capacity cost for industrial customers

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The addition of electricity capacity in the RUPTL for NRE only reaches 10.6 GW, of which 14 GW is required to achieve the 2025 carbon neutral target. The determination of the NRE portion of 51.6% seems still insufficient to achieve carbon neutrality and needs to be accompanied by steps from the electricity sector which uses NRE more than 23% and a significant reduction in the use of coal.

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The government has facilitated a clause to reduce parallel capacity costs for industrial customers from 40 hours to five hours per month. In the future, the economy will grow in a greener direction, supported by a green industry. Fabby Tumiwa said the industrial and commercial sectors must have an energy transition roadmap to achieve decarbonization and climate control

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The IESR market survey shows that there is a potential of 9.8 percent or 16 thousand businesses in Central Java to utilize rooftop solar power. The total installed PLST capacity in Central Java until August 2021 reaches 8.8 Mega Watt peak (MWp). In realizing decarbonization, it is important for industry and commercial to have an energy transition roadmap

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The Indonesian Mining & Energy Forum (IMEF) assesses that the moratorium on the construction of the New PLTU has no impact on coal miners, where the demand for coal from the PLTU until 2030 is still quite high at around 157 million tons per year. However, considering that the coal mining industry is still supported by export demand, it is important to look at the decarbonization policies of coal importing countries as an illustration of the future of Indonesia’s coal.

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IESR welcomes the RUPTL that has been prepared by the government. On the other hand, IESR believes that the value of NRE can be increased, especially for PV mini-grid. PLTS has a potential of 3.4 – 20 TWp and can be built quickly, especially rooftop PV and floating PV to achieve the decarbonization target. In addition, there is still a gap of 2-4 GW that must be met by non-PLN business area holders and community contributions

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In implementing the carbon tax, Indonesia is considered a relatively slow country. Some things that need to be considered again in its implementation are the appropriate mechanism, the price of carbon taxes for carbon trading, implementation and estimation of carbon emission reductions from the implementation of the instrument.

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The IESR (Institute for Essential Services Reform) states that there are four pillars that the Government of Indonesia must do in changing (transition) from dirty energy to clean energy by 2050: renewable energy, electrification, reducing the use of fossil fuels, and clean fuels.

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