The Surpassing Potential of Rooftop Solar Market to Achieve the Target of 23 Percent Renewable Energy Mix in 2025

Jakarta, 15 December 2020 – “What are the investment costs and roof area that I need to install a solar rooftop PV system? Does it save electricity costs? How is the integration with the PLN network? What are the installation regulations like?”

These questions often arise from the community before they decide to use the solar rooftop. Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR) said that it is a natural thing because generally, as energy consumers, they want to know the rooftop solar PV system they will use. Product knowledge is a considerable part in determining this decision.

“The need for information related to solar rooftops is increasing compared to 3 years ago when we initiated the National Movement for One Million Solar Rooftops (Gerakan Nasional Sejuta Surya Atap-GNSSA). The rooftop PV market is now also more open, even available online,” he explained in the discussion on Pursuing the Gigawatt Solar Energy Order in Indonesia, which was held by IESR.

However, this interest has not become a significant realization. As compared to Vietnam, in the same period, the last 2-3 years, Vietnam was able to increase its solar rooftop installation to 1.5 GWp. Meanwhile, Indonesia has just recorded the establishment of a solar rooftop of less than 20 MW.

In general, Indonesia’s renewable energy targets in the National Energy General Plan (Rencana Umum Energi Nasional-RUEN) have not gone according to plan. Until the end of 2019, the achievement of renewable energy was only 9.15%. Meanwhile, only 5 (five) years left to realize 23% renewable energy.

“To pursue that target is by encouraging the implementation of the solar rooftops. GNSSA exists to foster the formation of the gigawatt order in Indonesia. If this order establishes, the solar roof penetration to reach the target of 6.5 GW of renewable energy in RUEN will be faster, achieving economies of scale, will also increase public interest, and the price will be more affordable, “said Fabby.

Indeed, the GNSSA echo has had a pretty good impact. There has been an increase in the number of PLN customers using solar rooftop PV during the last 3 (three) years, from 268 in 2017 to more than 2,500 customers by October 2020. Regulations issued by the Ministry MEMR also triggered this increase – Permen ESDM No. 49/2018 as an updated Regulation from Permen ESDM No.13/2019 and No. 16/2019.

There are more companies providing rooftop PV installation services and increasing public interest in using rooftop solar PV as part of their lifestyle.

However, it is still not enough to meet the target of solar energy in RUEN, and the aim of the GNSSA, 1 (one) GW cumulative solar rooftop by 2020.
According to Fabby, rather than hoping for the development of solar panels on a utility-scale that requires land, time, and funding, the government should also focus on roof solar power plants for households, business and commercial sectors, and MSMEs.

“The IESR study shows that by 2030, the market potential for rooftop solar power plants in Java and Bali could reach 10-12 GW,” he also explained.

In Central Java alone, based on the IESR survey, there is a market potential of up to 9.6% for the residential group, 9.8% for business/commercial, and 10.8% for MSMEs. Furthermore, this survey also shows that 7 out of 10 homeowners give a positive response to using solar rooftops. However, 92% still have high doubts because they do not understand the technology, assume the price is still costly, and have not got the right answer regarding the products and benefits of saving electricity from solar rooftops.

Regarding the price, according to Fabby, in the past 3 (three) years, there has been a decrease in the investment cost for installing the roof PLTS, which was previously Rp. 25 – 35 million per kWp to Rp. 15 – 20 million per kWp. Likewise, the price of solar modules has decreased by 40% from $ 30 per Wp to 20 cents per Wp.

“Customers’ hesitation in installing roof solar power plants is based on the lack of reliable information and flat socialization of regulations regarding the use of roof solar power plants. Besides, information regarding the procedure for installing solar rooftops connected to the network (on-grid), the benefits that can be felt by users, to where they can buy their products is still limited and is still concentrated in big cities in Java, “said Fabby.

Bambang Sumaryo, Chairman of the Solar Roof Solar Power Users Association (Perkumpulan Pengguna Listrik Surya Atap-PPLSA), a rooftop solar user for 6 (six) years to date, expressed other dilemmas that are usually considered by potential consumers in installing rooftop solar power plants.

“The availability of kWh Exim (export-import) allows solar rooftops users to enter the on-grid network, making it more efficient. However, the availability of kWh Exim is hard to obtain, especially in the regions, “he complained.
Bambang also agrees with IESR’s observations regarding the lack of evenness of information accessible to potential users.

Moreover, Bambang mentioned the net-metering tariff rule of 1: 0.65 in the Permen ESDM No. 49/2018. This rate causes the payback period to be more than 5 (five) years, and the percentage of savings is not as high as expected.

Responding to the information gap accessible to the public, IESR built an online portal for SolarHub Indonesia (solarhub.id), which aims to provide information about solar energy for prospective users of PLTS rooftop and connect them with companies presenting products and installing rooftop solar power plants.

“Maybe there are still people who think they need a large area to install solar rooftops. Whereas with advances in technology, we can install solar rooftop PV on the roof of the house, in the canopy, or as a hybrid system, “said Chairiman from ATW Solar as a provider of solar rooftops installation products and services who joins SolarHub Indonesia.

Chairiman hopes that this portal, with its information and accuracy of the narrative, will attract more people to invest in rooftop solar PV.

On the other hand, Marlistya Citraningrum, Manager of the IESR Sustainable Energy Access Program, explained that the SolarHub Indonesia portal would bridge the Indonesian people, especially those outside urban areas and outside Java, to get information about the solar rooftops.

“Those who live in Jakarta, for instance, are advantageous because they can be directly exposed to socialization activities and connect with product and service providers if they want to know more about designs, the benefits of savings, and after-sales services for solar rooftops PV,” she explained.

At SolarHub Indonesia, there is also a sophisticated calculator. By using it, the users can calculate the amount of savings in electricity costs, details of the need for PV mini-grid for prospective users’ buildings, and the amount of budget required for the investment.

The market potential for rooftop solar electricity also shows that the solar energy target in Indonesia can be achieved easily through the deployment of roof solar power alone. Of course, with a combination of supporting policies and regulations and the availability of complete and equitable information about rooftop solar power plants, installation procedures, product providers, and installation services, to the choice of financing schemes.

The IESR market survey also shows that most people want a payback period of fewer than five years, which is difficult to achieve if the net-metering rate used is still 1: 0.65 as stipulated in Permen ESDM No. 49/2018. Furthermore, the clarity of the installation procedure in different areas also needs to be uniformed so that users of solar rooftops do not have to wait for months to get kWh Exim (export-import). The government needs to pay attention to the aspirations of people so that their interests can be encouraged into adoption and practice.

Coal Exports is Declining, It is Time for Energy Transition

Day 4 Indonesia Energy Transition Dialogue 2020, Energy transition in the power sector and its implications for the coal industry

Jakarta, December 10, 2020 – Indonesia’s coal export destination countries in Asia have begun switching to renewable energy. According to research by the Institute for Essential Services Reform (IESR), the coal industry will suffer losses. Energy transition is the only way to prepare for a decline in exports to Asia.

According to the IESR Data and Information Specialist, Deon Aprinaldo, coal export destination countries such as China and Japan began to commit to zero carbon from 2025 to 2050. This indirectly affected Indonesia’s coal export demand.

“Demand from these countries is declining, while Japan has begun to switch to high-quality coal. If we wanted to compete there, we would compete with the United States, Russia, and Canada,” said Deon.

In Southeast Asia, the demand for Indonesian coal exports is still high. However, Vietnam, which has successfully improved its renewable energy transition, is likely to serve as an example for other Southeast Asian countries. That way, the demand for coal in Southeast Asia will decline in the future.

“Meanwhile, currently 27 GW of coal power plant construction is still in progress. In August 2020, the Director of PLN said that PLTU has installed pollution controls to reduce carbon, but it will increase the operating costs,” said Deon.

Special Staff of Coal and Minerals within Energy and Mineral Resources Ministry, Irwandy Arif, said that 2027 would see the peak of the worldwide decline in coal demand. This is a challenge for the Indonesian government because currently, the government is using coal-derived products to handle the budget deficit from LPG imports.

“Therefore, currently the ESDM ministry is preparing a grand strategy with regard to important renewable energy commodities. Coal’s phaseout is largely determined by renewable energy and the overall policy designed by the government,” said Irwandy.

State-owned Companies (BUMN) such as PT Bukit Asam also undergo energy transition. PTBA conducted a green airport program by building solar infrastructure. In addition, they built solar panels in several regencies.

Renewable Energy Policy in Indonesia is Overlapping

Day 4 Indonesia Indonesia Energy Transition Dialogue 2020, Better energy system planning to transition the Indonesian power sector

 

Jakarta, December 10, 2020 – The climate of renewable energy policies in Indonesia is considered unsupportive towards renewable energy as of yet. Researchers and experts noticed an overlap between the General Plan for State Energy (RUEN) and the Electricity Supply Business Plan (RUPTL) devised by PT PLN.

Chairman of the Indonesian Renewable Energy Society (METI), Dr. Surya Darma, said that the government had detailed the efforts to reduce carbon emissions in the RUEN. But, on the other hand, the government still signed the RUPTL of PT PLN which is not in accordance with the RUEN. “This is a paradox. The target itself is already unsuitable, let alone the achievement?” said Surya.

According to Surya, the targets between RUEN and RUPTL that are not in line with each other will keep creating overlapping policies in the renewable energy sector. The government still has 8 years to revise the RUEN.

However, if it is impossible, the only way to handle that is by accelerating energy transition to make up for the gap between RUEN and RUPTL. “If the renewable energy target in RUEN is 45.2 GW, then the realization scenario could reach up to 22.62 and 25 GW,” said Surya.

Apart from the conflicting targets, the policy climate in Indonesia is still unclear in regard to the party responsible for implementing renewable energy. This was explained by academics from the School of Electrical and Informatics Engineering, Bandung Institute of Technology (ITB), Pekik Argo Dahono.

“In implementing the RUEN, it is unclear who will be responsible, this is what causes many overlapping renewable energy policies. Those who supervise are different each time, ”said Pekik.

Pekik considered the policy revision is too time-consuming. That being said, what can be done is to fulfill the targets written in RUEN. In addition, providing incentives for renewable energy development must also be accompanied by the readiness of the electricity system to receive renewable energy. Pekik said that the government should avoid being unprepared when coal is completely eliminated from Indonesia’s electricity system.

Energy Transition Acceleration Must be Just

Day 4 The 3rd Indonesia Energy Transition Dialogue 2020 | #IETD2020 #TransisiEnergi

Reducing carbon emissions through renewable energy transition needs to consider all aspects other than energy source. The goal is to ensuring just energy transition.

Therefore, the Institute for Essential Services Reform (IESR) published a series of reports outlining scenarios of renewable energy transition model structure for the road map of the National Energy General Plan (RUEN). Based on the national policy changes this year, the model structure would not achieve carbon emission reduction target by 2025. “The renewable energy transition only achieved 15%,” said IESR Executive Director, Fabby Tumiwa.

However, if the plan to stop using Coal Power Plants in 2029 was applied, Indonesia could contribute 24 GW of renewable energy in 2025 and 408 GW in 2050. Using this model structure scenario, greenhouse gas emissions could decrease by 700-750 million tonnes of carbon by 2050.

In the report, IESR also advocated achieving the decarbonization figure. Two main sectors that must be prioritized for transition are electricity and transportation. The government must accelerate the electricity mix in transportation with renewable energy, while in the electricity sector, the government must implement a moratorium on new Coal Power Plant.

Director of Electricity Program Development of the Ministry of Energy and Mineral Resources (ESDM), Jisman Hutajulu, said that limiting coal consumption at coal power plants must be balanced with the government’s efforts to maintain affordable electricity rates. “Coal has a large consumption and that keeps the price of electricity affordable. If the price of renewable energy is close to that price, we can aggressively undergo energy transition,” said Jisman.

Jisman said that for now, the government had implemented blending—using biofuel for power generation. Jisman said 815 GW generated from it had gone well. Up to this point, there has been a potential of 1.8 GW as the result.

Head of the UGM Center for Energy Studies (PSE), Dr Deendarlianto, said that transition from coal to renewable energy should be done slowly. Based on the PSE survey, Indonesia is still in need of massive research and development. With limited research and development, coal restrictions will disrupt electricity system.

“Imports will surge, then the economy will be disrupted. We can do vehicle electrification, but only for new vehicles so that the investment will not be too expensive. According to our study, electric cars that can enter Indonesia are only 400,000 at most and can only increase 2% each year,” said Deen.

Global Renewable Energy Trend Increases, Indonesia Must be Prepared!

3rd Indonesia Energy Transition Dialogue 2020 Day three | #IETD2020 #TransisiEnergi

Jakarta, December 9, 2020 – Energy transition is taking place all around the world. According to BloombergNEF, there are 10 million electric buses in the world and they keep increasing. Head of Research for APAC BloombergNEF, Dr Ali Izadi, said that the data is directly proportional to the increasing trend of renewable energy in the future.

“By 2050, sunlight and wind power as renewables will dominate the world. In the next five years, renewable energy from sunlight and wind power will start to be on track,” said Ali. Therefore, Ali said that in the last six months there had been a rapid change in the worldwide energy market. Countries around the world must make energy transition from now on.

The increasing trend of worldwide interest in renewable energy affected coal demand in Indonesia. Executive Director of the Indonesian Coal Mining Association (Asosiasi Pertambangan Batubara Indonesia), Hendra Sinadia, said that currently, the demand for Indonesian coal exports to Southeast Asia and East Asia is still promising. But in 2019, the demand had reached its peak.

“Eighteen percent of our coal exports go to China and India. Another 30% is exported to Taiwan, Thailand and Japan. We will still sign an export cooperation agreement with China to maintain good relations with them. However, in 2019, the demand for coal has reached its climax, there will be a slow decline in the future, there must be a transition to renewable energy,” said Hendra.

Currently, Indonesia has started its renewable energy transition through PT PLN as a State-Owned Enterprise (BUMN). The first phase of diesel to renewable energy transition took place across 200 locations with a total capacity of 225 MW.

Director of the PLN Mega Project, M. Ikhsan Asaad, said that to support the first phase, PLN would not only carry out decarbonization but also digitalization. “Smart grid, smart meter, smart home. Then we also carried out distributed storage. Pertamina, PLN, Antam also collaborated to develop the battery industry in Indonesia,” said Ikhsan.

Deputy Minister of BUMN, Budi Gunadi Sadikin, stated that presently Indonesia has 3500 MW energy surplus of which people use 1000 MW. “From that, 60% is still coal and 15% is natural gas,” said Budi.

On the other hand, Indonesia still exports cheap coal and subsidized LPG consumption by 40 trillion rupiahs. According to Budi, 10 trillion rupiahs from the government budget could have been used to fund renewable energy research and development.

However, in its implementation, Indonesia cannot completely imitate the renewable energy transition strategy undertaken by other countries. “We can’t just do it since our country is an archipelago. Not only we have to think about how the energy can be distributed, but also connected from one island to another,” said Budi.

Faisal Basri, a member of the Indonesia Clean Energy Forum, said that apart from ensuring its availability, the government should make renewable energy affordable for the community as well. For this reason, the government should give subsidies for renewable energy instead of fossil fuels.

In this case, Faisal assessed that the government is still not in line with BUMN such as Pertamina. Faisal said that amid the pandemic, the government improved the facilities for fossil-based energy. Especially in the Job Creation Draft Bill (RUU Cipta Lapangan Kerja), many articles rather benefit the price mechanism in the coal industry.

“For example, when Pertamina launched the idea to ​​eliminate 88 tons of carbon using pertalite. But this pertalite cost the same as premium. The government didn’t say anything. The government still subsidized premium. Pertamina is more progressive than the government,” said Faisal.

Faisal said that in order to administer renewable energy transition, the government has to support the renewable energy industry through policies encompassing renewable energy infrastructure, subsidy, and pricing mechanisms.

Executive Director of Institute Essential Services Reform (IESR), Fabby Tumiwa, stated that global energy transition has been in progress and inevitable. For energy State-Owned Enterprises in Indonesia, it is important to survive this era of energy transition by transforming business and making innovations.

“In the electricity sector, the government needs to design changes for the structure in electricity industry and set electricity rates that reflect long-term marginal cost,” said Fabby.

PLN needs to integrate a distributed-energy supply system and strengthen its consumers. That way, consumers could become energy producers and help PLN address the need for energy supply investment that—according to the IEA (2020)—requires $25 billion investment per year to accelerate energy transition.

“The challenges for the government is making the energy transition road maps, planning and managing the transition; considering the infrastructure assets of fossil fuel owned by BUMN are very large. There is not much time left—5 years at most to prevent an energy BUMN like PLN from financial losses due to the uncompetitiveness of its PLTU assets with solar generator and storage technology,” said Fabby.

Local Government Programs are the Key to Successful Renewable Energy Transition

Jakarta, December 8, 2020 – Each region in Indonesia has a lot of renewable energy potential that has not been utilized optimally. That being said, local governments with renewable energy acceleration programs are the key to the renewable energy transition.

Governor of East Nusa Tenggara (NTT), Viktor Bungtilu Laiskodat, said that NTT has 60,000 MW renewable energy potential from sunlight. However, only 100 MW of it has been utilized optimally by the people.

“In this transition, we face challenges from the local government, this is conflicting with the comfort of using fossil fuels, but we have no choice other than undergoing energy transition because the world’s interest is now heading there,” said Viktor, Tuesday (Dec 8, 2020) in a panel discussion on the Indonesia Energy Transition Dialogue (IETD) titled “High-Level Roundtable Dialogue: Local Governments Lead the Way in Energy Transition.”

Viktor said the companies that acquire seaweed from NTT start turning down products that are not produced using renewable energy. Based on this phenomenon, according to Viktor, a transition to renewable energy is inevitable. Therefore, the local government is still trying to increase renewable energy absorption from solar energy on Sumba Island.

However, according to the Head of the Energy and Mineral Resources (ESDM) in Central Java, Sujarwanto Dwiatmoko, local governments must also implore the community to adopt renewable energy potential. “If we only take into account the renewable energy absorption from power plants built by the government, the absorption target will never be achieved,” said Sujarwanto.

The Central Java Provincial Government has developed an Energy-Independent Village (Desa Mandiri Energi) in which the community uses solar power, hydropower, wind power, and livestock waste biogas as power plants. As of today, nearly 80 energy-independent Villages have been established.

Commitment between the local government and community has been implemented in Chungnam, South Korea. Chungnam Governor, Yang Seung Joo, along with 300 community organizations, has committed to eliminating carbon emissions by 90 million tonnes of carbon dioxide ever since his campaign in 2018. “Commitments from all stakeholders can accelerate the energy transition. The key is how local leaders can lead the transitional energy,” said Yang Seung Joo.

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Tentang ICEF

Indonesia Clean Energy Forum adalah platform dialog konstruktif dan berbasis fakta untuk meningkatkan pemahaman transisi energi dan berbagi praktik terbaik mengenai kebijakan, peraturan, dan kerangka kerja kelembagaan untuk mendukung transisi energi yang adil di sektor energi Indonesia. ICEF secara resmi diluncurkan oleh Menteri Energi dan Sumber Daya Mineral pada 15 November 2018. Anggota inti ICEF terdiri dari 25 individu terkemuka dari berbagai latar belakang. Untuk informasi lebih lanjut silahkan kunjungi laman http://iesr.or.id/program/indonesia-clean-energy-forum/.

Tentang IESR

Institute for Essential Services Reform adalah institusi riset dan advokasi di bidang energi dan kebijakan lingkungan. Institusi kami mengkombinasikan studi mendalam, menganalisa kebijakan, regulasi, dan aspek tekno-ekonomi pada sektor energi dan lingkungan dengan aktivitas advokasi kepentingan umum yang kuat untuk mempengaruhi perubahan kebijakan pada skala Nasional, sub-bangsa dan dunia. Untuk Informasi lebih lanjut silahkan kunjungi laman www.iesr.or.id atau ikuti  Facebook dan Twitter kami.

 

Media contacts:

Jannata Giwangkara

Manajer Program Transformasi Energi, IESR

081284873488 | egi@iesr.or.id 

Gandabhaskara Saputra

Outreach and Engagement Adviser – Clean, Affordable and Secure Energy for Southeast Asia
IESR

081235563224 | ganda@iesr.or.id

Local Government’s Commitment is The Key to Renewable Energy Transition

Jakarta, December 7, 2020 – Each province in Indonesia has a lot of renewable energy potential that has not been developed optimally. Therefore, aside from devising policies that favor renewable energy, regional leaders act as an important key to cultivating renewable energy potential.

Governor of East Nusa Tenggara (NTT), Viktor Bungtilu Laiskodat, said that NTT has 60,000 MW renewable energy potential from sunlight. However, only 100 MW of it has been utilized optimally by the people. To optimize the use of renewable energy, the NTT Provincial Government hopes to take concrete steps through a collaboration with the central government and PLN.

“There is no other choice, we have to shift to renewable energy because this affects other sectors. For example, when we produce seaweed, it is rejected by European companies because it is not produced using 100% renewable energy. This means that the world’s interest lies in renewable energy, we have no choice but to shift, “said Viktor.

Indonesia also has an extraordinary social culture. Therefore, the Central Java Provincial Government uses community movements in villages to participate in building an Energy-Independent Village (Desa Mandiri Energi). Head of the Central Java Energy and Mineral Resources (ESDM), Sujarwanto Dwiatmoko, said that people in the energy-independent village use sunlight, biomass, water flow, and biodigester to generate electricity.

Deputy Regent of Musi Banyuasin, South Sumatra, Beni Hernedi said that several communities in South Sumatra district start to adopt biomass to fuel power plants. That being said, programs from the local government to optimize the energy mix need support from the central government and PLN as the main supplier of electricity.

Bali also needs the central government’s support for the collaboration between smart grid renewable energy and the old grid. According to IGW Samsi Gunarta, the Head of Bali’s Provincial Transportation Agency, this support is needed to support electric vehicles initiated by the Provincial Government. “Besides, it is impossible for us to continue the production without using (the products). Apart from the production, the usage must also be taken into account,” said Samsi.

Chungnam Province, South Korea serves as an example that the regional leaders’ success is the key to successfully directing the society to the energy transition. Chungnam Governor, Yang Seung Joo, along with 300 community organizations, has committed to eliminating carbon emissions. It is hoped that Indonesia can follow Chungnam’s steps in collaborating with the community.

Watch Governor Yang full speech, addressed on the second day of IETD 2020:

All Parties Collaboration Required! Reducing Carbon Emissions through Renewable Energy Development

Day one of  The 3rd Indonesia Energy Transition Dialogue 2020 #IETD2020 #EnergyTransition

Jakarta, 7 December 2020 – Carbon emissions from Steam Power Plants (PLTU) tended to be low during the Covid-19 pandemic due to decreased consumption of electrical energy. However, the target for reducing carbon emissions is not yet on track to meet the Paris Agreement. For carbon emission reduction to be sustainable, the Indonesian government should be able to take advantage of post-Covid-19 recovery by more massively developing renewable energy potentials.

Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR) in his remarks during the opening of the Indonesia Energy Transition Dialogue 2020 (IETD 2020) highlighted the phenomenon of falling coal prices in the international market and the stronger commitment of coal-importing countries such as China, Korea, and Japan to go carbon neutral in 2050.

“Ten years ago, people might not have imagined that solar panel technology would be one of the energies to power electricity. Or, decades ago, people might not believe that coal would become history since it is no longer economical. However, all of that is happening right now. Solar energy is getting cheaper, and coal is becoming unpopular, ”he said.

Fabby also explained that Indonesia has great renewable energy potential from sunlight, geothermal, biogas, and hydropower. Using these potentials, Indonesia must achieve 23% renewable energy use by 2025.

According to the IESR research, Indonesia’s chance of achieving its energy mix target is quite positive. The energy mix penetration in Indonesia can reach 40%. IESR’s recent study with Finland’s Lappeenranta University of Technology (LUT) and Agora Energiewende said that Indonesia could reach 100% renewable energy demand by 2050 cost-effectively without compromising on energy security. Achieving this requires collaboration from all stakeholders in government and community policy.

Although not as fast as ASEAN countries like Thailand in promoting renewable energy development, the Indonesian government through the Ministry of Finance has made various fiscal policies that support the renewable energy industry. Some of them are tax holiday and tax allowance for the renewable energy industry.

In addition, Suahasil Nazara, Deputy Minister of Finance who attended the Indonesia Energy Transition Dialogue (IETD), emphasized the importance of synergy between institutions to determine the direction of Indonesia’s renewable energy.

“The government is basically very passionate about renewable energy development. Come, every institution, especially the Ministry of Energy and Mineral Resources and related institutions, sit together and have a deep discussion, so that we, from the Ministry of Finance, can provide maximum support in terms of encouraging renewable energy investment in Indonesia,” Suahasil said.

The government also continues to improve Indonesia’s economy through various national economic recovery (PEN) programs, namely a fund allocation of Rp318 trillion rupiahs. Thanks to this program, Indonesia’s economy began to improve as seen from the graph of the national income development that rose from -5.32% to 3.49% in the third quarter.

Unfortunately, the economic stimulus has been flowing more towards fossil energy than renewable energy. Therefore, the government provides various sources of funding for the renewable energy industry. One of them is through the issuance of Sukuk hijau.

This article was developed from the recent discussion within the 3rd Indonesia Energy Transition Dialogue, Monday, December 7th. Join and participate in the dialogue virtually, 7 – 11 December 2020, visit ietd.info.

 The second day of IETD 2020, will bring the discussions among The Governors (local government of Indonesia) and Special guest: Governor of Chungcheongnam-do, South Korea with the topic of Local governments lead the way in energy transition.

ietd.info