Capacity Building for Sub National Government in the Era of Just Transition

Jakarta, 26 October 2023 – The energy transition currently being discussed will have a significant impact on the use of fossil fuels such as coal. Various countries have committed to reducing the use of fossil fuels as one of the key actions in their energy transition. Fossil producing countries such as Indonesia need to be aware of this, because there will be a decrease in demand from the global market.

South Sumatra and East Kalimantan are the largest coal producing areas in Indonesia. Coal has become a key component in the economic growth of both provinces. In 2022, coal will contribute 30-35% to East Kalimantan’s GRDP and 15% in South Sumatra. These two provinces need a special strategy to get rid of economic dependence on coal. Stefan Boessner, a researcher at the Stockholm Environmental Institute (SEI) in the “National Workshop on a Just Transition: Building Government Capacity for a Sustainable Coal Transition in Indonesia” said that economic alternatives are available and can be developed.

“There have been examples of a region successfully diversifying its economy. The government will need capacity building support from the central government,” he said.

Stefan added that the Indonesian government has started to create a policy framework that will become the legal basis for the energy transition in Indonesia, such as a net zero emission target, regulations on the economic value of carbon, as well as a roadmap for early retirement for coal-fired power plants.

In preparing for this transition, development, economic and energy planning are very important. Involvement of various elements that will be affected by the transition become crucial.

Martha Jessica, Social and Economic Analyst at the Institute for Essential Services Reform (IESR) explained that one of the initial findings of the study currently being conducted by IESR is that there is a capacity gap between the central government and regional governments so that this transition planning is not considered optimal.

“To have a proper planning process, various superior/adequate capacities are needed by the government as the initiator (early actor) and catalyst of the energy transition,” said Martha.

Elisa Arond, SEI researcher, added that regional governments can play a crucial role in supporting a just transition agenda. To do all this, of course local governments will need a certain amount of support from the central government.

“They (sub-national governments-ed) need financial support from both the central government and international institutions, inclusive dialogue involving actors with diverse backgrounds, funding strategies, and transparent access to information about mine closure plans,” explained Elisa.

Tavip Rubiyanto, Associate Expert Policy Analyst as Coordinator of Energy and Mineral Resources, Directorate General of Regional Development, Ministry of Home Affairs, explained why currently the energy transition is not yet underway in the regions because regional authority is still limited.

“For this reason, the Ministry of Home Affairs has initiated the preparation of Presidential Decree no. 11 of 2023 to strengthen regional authority in carrying out government affairs in the ESDM sector, especially in the renewable energy sub-sector,” he said.

Brilian Faisal, representative of the South Sumatra Province Planning Office Bappeda, expressed the hope that the concept of a just energy transition must be related to access and infrastructure.

“In our regions we have not yet made derivative regulations from various regulations related to the energy transition because to make them we need to revise the RUED, which most of the authority is mostly in the MEMR sector,” said Brilian.

Wira Agung Swadana, IESR Green Economy Program Manager stated that this workshop was the right moment to prepare the RPJMN and RPJMD which must include the coal transition agenda.

“This transition requires several things such as planning and funding and must be included in the regional development agenda so that it can receive funding from the government,” said Wira.

We Don’t Have a Choice, We Have to Achieve Carbon Neutrality

Jakarta, 25 October 2023 – Industry is the main driver for economic growth and the largest sector to stimulate technology advancement. Industrial-scale economic activity has already transformed the global economy since its peak. Unfortunately, the tremendous economic growth must be paid for by the high greenhouse gas emissions transmitted. 

For a while, people are trying to figure out a way to minimize the GHG emission from the industrial process. This effort will be a meaningful step in the race to achieve net zero emission in this century as it is mandated by the Paris Agreement.

Deon Arinaldo, Energy Transformation Program Manager at the Institute for Essential Services Reform (IESR) during the Dissemination Workshop of Indonesia Industry Decarbonization Roadmap and Policy Recommendation on Wednesday 25th October 2023 said that IESR is currently looking into five big industries i.e cement, pulp & paper, steel, textile, and ammonia and develop a decarbonization roadmap. 

“We are in the beginning of decarbonizing our industry sector, and we need more collaboration between stakeholders as there are just so many stakeholders involved in the industry sector,” Deon said.

Farid Wijaya, senior analyst IESR later explained that Indonesia has initiated a green industry policy framework, yet it still needs more improvement to make it more robust and contextual. 

“The five industries that we are looking at are highly motivated to decarbonize their business process, but currently there are still challenges such as the cost and policy framework that still need to be improved,” explained Farid.

Realizing that the industrial process requires a vast amount of energy from electricity to decarbonize the industry sector, it is a must to also decarbonize the power sector. 

“(The availability) of policies that support industry to connect to renewable power or develop its own renewable electricity are very important,” said Hongyou Lu, Energy and Environment Technology Researcher, LBNL.

Lu added that industry decarbonization is inevitable but multifaceted and it has potential to grow the local economy, reduce air pollution and make the commodity more competitive in the global trade.

Stephane de la Rue du Can, Energy-Environmental Policy Research Scientist, LBNL then added that there should be a complete package of policy reform to decarbonize the industry sector, including (1) industry GHG reduction targets and planning, (2) innovation, (3) electrification and fuel switching, (4) energy efficiency, (5) material efficiency and circular economy, and (6) workforce and local communities.

Endra Dedy Tamtama, Energy Conservation Monitoring Coordinator, Ministry of Energy and Mineral Resources shares that currently energy efficiency practices done by some industries are those either no cost or low cost. Things related to retrofitting utilities that require significant capital cost are not yet done.

“Because currently there is no fiscal incentive is given to industries once uses an energy efficient infrastructure, any changes that require significant cost, although it will save more energy, has not fully tapped,” Endra said.  

Muhammad Akhsin Muflikhun, Technology Expert of PSE UGM, emphasized the importance of technology readiness to support industry decarbonization such as the utilization of hydrogen.

“Hydrogen has been our focus for energy storage technology. We try to compare hydrogen storage vs. batteries, so far there is still a huge gap in energy efficiency once it is stored in a battery compared to once it is kept in a hydrogen storage system,” he said. 

Sri Gadis Pari Bekti, Functional Intermediate Expert, Ministry of Industry agrees that technology will be a game changer during the industrial decarbonization. The emerging technology such as CCS and CCUS, and hydrogen are expected to be able to fulfill energy needs in the industry.

“As part of our support to industry, we facilitate certification for industry. To some extent, the government can help the capacity building and certification process,” Bekti said.

In order to smoothen the industry decarbonization the availability of green financing is crucial.

PT PLN, as the main energy supplier in Indonesia through their Bioenergy manager, Yudas Agung Santoso, said that currently they are still mapping the energy needs especially from industry as in the near future some big industries such as nickel smelter will come.

“For industry (and those who need) currently, we have a Renewable Energy Certificate (REC) program, in which we dedicate a renewable power generator to supply those who subscribe the certificate so they can get green electricity,” he said.

Nan Zhou, Energy Environmental Policy Senior Scientist, LBNL, in her concluding remark highlighted the importance for Indonesia to take the lesson learnt from other countries who start decarbonizing its industry earlier. 

“We don’t have a choice; we have to achieve carbon neutrality. So, we must do any possible action to make it happen,” Zhou said.

Reflection on Indonesian Leadership in ASEAN 2023

Jakarta, 20 October 2023 – The transfer of the ASEAN leadership baton to Laos marks the end of Indonesia’s leadership in the ASEAN region. A number of milestones such as cooperation with external non-ASEAN parties, as well as several opportunities for cooperation between ASEAN member countries are a good note. However, this good record has not been matched by an increasing commitment to curbing the rate of climate change, the impacts of which are increasingly being felt.

In a Public Discussion entitled “Reflecting on Indonesia’s Leadership in ASEAN 2023: Towards a Regional Frontrunner in Climate and Energy Transition Issues”, Wira Agung Swadana, Green Economy Program Manager of the Institute for Essential Services Reform (IESR), stated that during Indonesia’s leadership period, cooperation or action was agreed upon by ASEAN member countries are still mainly infrastructural.

“The results of the 2023 ASEAN Summit and other energy and climate-related meetings can be seen that there is still a lack of focus on renewable energy issues. “For example, there is no joint commitment to increase the development of a cleaner solar energy or hydropower ecosystem,” said Wira.

Apart from the ecosystem for renewable energy, Wira also said that several issues had ‘eluded’ the attention of ASEAN high-ranking officials, such as the issue of critical minerals and low-carbon and sustainable electric transportation.

Executive Director of the Indonesia Research Institute for Decarbonization (IRID), Moekti Handajani (Kuki) Soejachmoen, explained the phenomenon of the high contribution of emissions from the energy sector in ASEAN countries.

“Energy is an engine for development, so if development still uses energy procurement patterns with a business-as-usual scheme (high fossil-ed), emissions will definitely increase significantly. On the one hand, all ASEAN member countries need to carry out development but must control their emissions,” explained Kuki.

Kuki then added that the role of technology is needed to enable development to continue and keep the amount of emissions released low. The use of this technology will have financial consequences.

By looking at this problem, Kuki emphasized that it is important for ASEAN as a regional unit to develop a comprehensive strategy to achieve the NDC targets for each country and encourage the achievement of Net Zero Emissions. From this strategy, mitigation actions can be grouped that can be carried out alone, those that require international financial support, those whose emission reduction units can be sold and those that require additional purchase of emission reduction units.

IESR Energy and Climate Diplomacy Coordinator, Arief Rosadi, highlighted ASEAN’s tendency to seem slow in taking strategic diplomatic positions, thus creating various gaps such as institutional gaps, ambition gaps, implementation gaps and participation gaps. According to him, Indonesia can use its position to strengthen its climate and energy diplomacy and contribute to narrowing gaps in ASEAN.

“Increasing climate ambition in strengthening Indonesia’s climate and energy diplomacy strategy is a modality for Indonesia to encourage the same thing in other countries at regional, bilateral and multilateral levels. Apart from that, fixing the gap can be done by encouraging the resolution of the gap at the regional level in ASEAN’s internal processes,” added Arief.

Energy Conservation Actions Still Become Homework for Indonesia’s Decarbonization

Jakarta, 12 October 2023 – Energy conservation is one of the decarbonization efforts that can be carried out with minimal costs and relatively less effort than building new power plants. Unfortunately, this effort is still the second priority in Indonesia’s decarbonization agenda.

In order to encourage the acceleration of energy conservation actions, the government issued Government Regulation no. 33 of 2023 which regulates energy conservation in various sectors. Tavip Rubiyanto, Head of ESDM Subdivision, Directorate of Synchronization of Regional Government Affairs I, Directorate General of Regional Development, Ministry of Home Affairs, explained that Indonesia’s energy needs will continue to increase along with the increase in population and per capita economic growth.

According to him, the Indonesian government has made an international commitment to limit the release of greenhouse gasses and continue to increase renewable energy capacity. However, this plan is still hampered by the large initial investment.

“In PP 33/2023, we give a mandate to local governments, business entities, communities and the private sector to take part in energy conservation actions,” said Tavip in a focused group discussion held by the Institute for Essential Services Reform (IESR) on Thursday, October 12th 2023.

Tavip added that the regulation of authority for regional governments is expected to provide sufficient space for regional governments to propose and implement energy conservation programs.

Coordinator of the Technical Guidance and Energy Conservation Cooperation Group, Ministry of Energy and Mineral Resources, Hendro Gunawan, explained that it is important for an entity to carry out energy management.

“For the private and industrial sectors, we have even reached certification such as ISO 50001 (industrial management) because apart from improving branding, it is also a kind of requirement to continue to exist in the industry,” said Hendro.

Regarding the basis for implementing energy management which is still voluntary, Iwan Prijanto, chairperson of the Green Building Council Indonesia (GBCI), emphasized the importance of incentive schemes for building owners who will carry out green building certification. Especially for office building owners as the highest contributors to greenhouse gas emissions.

“I actually feel sad, because the first building was certified in 2011, and additions are very slow. “The absence of incentives or disincentives for building owners is one of the reasons for the slow growth of green buildings,” explained Iwan.

Dyah Perwitasari, Junior Planner at the Ministry of Bappenas, who was present at the discussion, also highlighted the standards for successful energy conservation that need to be considered together.

“Apart from achieving standards that we need to think about again, communication or outreach about energy savings to the public is also very important, for example energy saving label indicators on electronic devices used in the household,” he said.

Realizing Energy Democratization through Solar Energy

Jakarta, 5 October 2023 – Energy is a basic human need not only to support daily activities but more importantly to increase productive activities. Solar energy is a renewable energy source that can realize energy democratization.

Solar energy fulfills several aspects for the democratization of energy such as the availability of resources throughout the year, and the flexibility of the scale of installation. For a nobler goal, by installing solar panels, users contribute to reducing emissions from the energy sector. These various reasons show that motivations for using solar PV can vary.

This is in line with the findings of a market survey conducted by the Institute for Essential Services Reform (IESR), one of which explored respondents’ motivations for using solar PV. Marlistya Citraningrum, IESR Sustainable Energy Access Program Manager, in the Seminar ‘Solar Energy Policy and Action Plan as a Form of NRE Commitment towards Indonesia’, Thursday 5 October 2023, explained that motivations can vary from one region to another.

“MSMEs in Central Java choose rooftop PV because they are interested in the savings so that their electricity bill money can be allocated to other things. Meanwhile, business people in Bali have a high awareness of maintaining harmony with nature. “Apart from that, they will get positive branding as an environmentally friendly business entity,” said Marlistya.

To increase public interest in using solar energy, several things need to be done by stakeholders, including the government, in creating an ecosystem that supports the growth of renewable energy.

Three things that must be pursued to encourage participation by more parties are first, regulations that are clear and supportive and well communicated so that the public gets information about rooftop PV regulations easily and without confusion. Second, there are examples of users and easy access to service providers; third, provide incentives and increase access to financing.

In the same forum, Dedi Rustandi, Intermediate Expert Planner Coordinator for NRE at the Ministry of Bappenas stated that solar energy achievements were still below RUPTL target.

“There are a number of main causes, including the pandemic which has prevented electricity demand from growing significantly, there is uncertainty in the investment climate for the business, as well as delays in project procurement (related to governance),” said Dedi.

Dedi admitted that there are still a number of inefficient policies, resulting in the use of solar energy not being optimal in Indonesia.

Arrange a Strategy to Get Around the Impact of Coal Power Plant Shutdown

Jakarta, 27 September 2023 – Indonesia’s increase in climate commitments in the Enhanced Nationally Determined Contribution (E-NDC) brings a number of implications, including plans to stop coal-fired power plant operations early to reduce emissions. This plan has several impacts, including a decrease in the income of coal-producing regions as well as national income, the potential for massive layoffs, as well as other socio-economic impacts.

In a hybrid seminar, entitled “Sunset CFPP and the Coal Industry: Reviewing Multisectoral Direction & Impact in a Just Energy Transition” (27/9), Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR) explained that the energy transition agenda for both Indonesia and the destination countries for Indonesian coal exports will have an impact on a number of aspects in Indonesia.

“There are three factors that can be seen from the energy transition in coal producing areas: the link between the local economy and coal, the readiness of existing human resources, and alternative economic options that can be developed in that area, and how mitigation plans can be prepared,” said Fabby.

In the presentation material delivered by Ilham Surya, IESR Environmental Policy Analyst, it was explained that the role of the coal industry in the economy of coal-producing regions is quite significant.

“The GRDP contribution is between 50% and 70% in Muara Enim and Paser, but the multiplier effect is not that big,” said Ilham.

Within the scope of national policy, the Ministry of PPM/Bappenas is currently preparing a Long Term Development Plan (RPJP), one of the points  is economic transformation.

“The energy transition is part of the green economic transformation, so in the latest draft of RPJP, what we meant by transition is not only seen from the energy sector,” explained Nizhar Marizi, Director of Energy, Mineral and Mining Resources, Bappenas.

Grita Anindarini, Deputy Director for Programs, Indonesia Center for Environmental Law (ICEL), emphasized the important role of the policy framework and implementation of various existing regulations.

“A just energy transition requires a very big policy transformation on employment, environment, energy, and financing. Currently there are several policy regulations regarding the energy transition, but their implementation still faces various obstacles,” explained Grita.

Haris Retno Susmiyati, Lecturer at the Faculty of Law, Mulawarman University, admits that economic dependence on coal commodities is not a good thing. She said that in 2015, when coal prices fell drastically, the economy of East Kalimantan also slumped.

“By regulation, the company’s obligation to pay royalties to the government is only 13.5% of that figure. The regional government only gets 5%, so it is not the coal producing regions that actually enjoy the profits from coal,” said Retno.

Having a similar context to East Kalimantan, Jambi province is also starting to prepare for transition. Ahmad Subhan, Head of Economy and Natural Resources, Bappeda Jambi, said that even though it is not the main coal producing area, the contribution of the coal sector to GRDP is quite significant.

“Coal is indeed significant for supporting the economy, but if there are substitutes that are more relevant to regional conditions, they can be explored further. For this transition, we in Jambi province are supportive but not drastic. We are also waiting for substitutions for economic transformation,” said Ahmad.

Implementation Check Methodology: a Much Needed Mechanism

New York, 21 September 2023 – The global community is urging global leaders to take serious actions to address climate change. During the COP 27 in Egypt, several countries renewed their commitment to reducing greenhouse gas emissions and achieving net zero emission status. However, there are still gaps between commitment and implementation of policy and action to seize the determined target. 

To assess, rate, and monitor a country’s progress during the policy implementation, Climate Transparency, a global partnership of research organizations and NGO in the G20 countries, has developed a methodology to review policy implementation across four categories: legal status, institutions & governance, resourcing, and oversight.  

Yvonne Deng, Energy and Climate Strategy Expert from the 7Gen Consulting, emphasized the importance of having monitoring instruments to review current policy and its role to seize the climate target. 

“We (Climate Transparency) analyze the gap and go deeper to the sectoral approach to recommend what sectoral policy a country should take to pursue the ambition,” said Yvonne.

South Africa, one of the countries receiving global attention lately as the first recipient of Just Energy Transition Partnership funding. Guy Cunliffe, Energy System Researcher of the University of Cape Town explained that as a country receiving international assistance, South Africa needs to showcase accountability during implementation. 

“An implementation monitoring is critical to showcase success of the implementation and as a beneficiary country it is also a way to display progress of the committed project,” he said.

Guy added that as the first JETP recipient, South Africa has increased its climate ambition and tried to integrate significant renewable capacity to its grid. However, during the implementation, the country is experiencing a glitch in terms of electricity supply. This glitch ‘forces’ them to adjust the plan and policy while rapidly changing the energy market. This is only possible with continuous policy monitoring. 

Similar to South Africa, Indonesia, as one of the biggest coal producers, has its electricity generation dominated by coal. In 2022, Indonesia renewed its emission reduction target in enhanced NDC, from 29% to 31.89% (unconditional) and 41% to 43.2% (conditional).

Wira Agung Swadana, Green Economy Program Manager at the Institute for Essential Services Reform (IESR), noted that during the transition away from coal-dependency, there are still conflicting interests among stakeholders, primarily due to the government’s lack of clear guidance on the transition’s meaning and direction transition.

“Though Indonesia has increased ambition and target in its NDC, the enabling environment for the renewable energy developers is not attractive enough yet. There is still no clear incentive for the investors as well as the lengthy process,” Wira explained. 

The in progress New and Renewable Energy Bill (RUU EBET), though believed to provide a robust policy framework, is to some extent attempting to prolong the use of fossil fuels by including CCS technology in the renewable options.

Energy Transition in the Midst of Coal Mining Siege

Samarinda, 7 September 2023 – The energy transition is an unavoidable inevitability. Current world trends show that the earth is getting hotter and to limit the rise in earth’s temperature, structured solutions are needed, including the energy transition, which involves various sectors and multi-stakeholders.

Society and communities are one of the key actors in the energy transition who can initiate the development of renewable energy to answer their energy needs. 

The Institute for Essential Services Reform (IESR) in collaboration with the Clean Affordable and Secure Energy for Southeast Asia (CASE) project and the Department of Energy and Mineral Resources (ESDM) of East Kalimantan Province held the ‘Jelajah Energi Kaltim’ activity to see directly and closer to the development of various initiatives for using renewable energy in East Kalimantan Province.

This series of activity began with a workshop, followed by visits to a number of places. On the first day of the visit, the group saw PV installation at the Pertamina Hulu Mahakam office, TPAS Manggar, and Kariangau Coal plants in Teluk Balikpapan.

The “Jelajah Energi Kaltim” trip continued on the second day starting with a visit to Mulawarman Village to see how the community uses livestock manure to make biogas. The biogas in Mulawarman village is home-sized biogas digester aid from the East Kalimantan Province Energy and Mineral Resources Service.

Mulawarman Village is in Tenggarong Seberang District, Kutai Kertanegara Regency, East Kalimantan. Coal mines surround Mulawarman Village. This condition made the residents of Mulawarman village ask to be relocated.

The East Kalimantan Regional Government is starting to pay attention to Mulawarman village to help the economy of Mulawarman village residents, one of which is by developing livestock groups and providing assistance with biogas installations.

In 2021, the East Kalimantan ESDM Service provided biogas installation assistance to stock farmer group (which had been surveyed) in the village, totaling 20 farmers. This means that people do not have to pay monthly fees for using this biogas.

People who use biogas immediately feel positive impacts, such as savings in costs for cooking fuel. Zaenal Abidin, a resident of Mulawarman Village, who is also a beneficiary of the biogas installation assistance, said that previously, to meet their cooking needs, their family could use up to 4 pieces of 3 kg LPG in one month. Now, he can cut his LPG needs to just 1 piece of 3 kg LPG.

“For everyday cooking (biogas, ed.) is enough. But if there are social events such as recitations, we still have to use LPG gas,” said Zaenal Abidin.

Zaenal also added that the cooking process using biogas fuel takes a little longer than using LPG. This biogas installation assistance is also accompanied by the transfer of knowledge about technology to the stock farmers. So that they can detect technical obstacles that could potentially arise from using this home biogas installation.

The Group continued their journey to Menamang Kanan Village, Muara Kaman District, Kutai Kartanegara Regency. The journey to Menamang Kanan Village takes almost 3 hours with heavy dusty road conditions which result in very limited visibility.

In the past year, residents of Menamang Kanan Village have succeeded in enjoying electricity from a centralized PV installation assisted by the East Kalimantan Energy and Mineral Office with a capacity of 87 kWp. This solar PV supplies basic electricity needs for 600 families in Menamang Kanan Village.

Previously, the residents of Menamang Kanan Village depended on the electricity supply from the diesel generator provided by one of the company’s CSR programs operating around the village. For the operation of this diesel generator, 70 liters of fuel is needed every day to provide electricity for 4 hours.

Zapir, Village Secretary of Menamang Kanan, explained that although electricity from solar PV has increased access to electricity in Menamang Kanan Village, its utilization is still limited to lighting and basic electronic equipment.

“So, it’s just for lighting, and maximumly a fan. It’s still not possible for TVs or refrigerators,” said Zapir.

Zapir hopes that the capacity of this communal solar PV can be increased in the future so that village residents can use electricity for productive activities that have the potential to bring economic value. Not limited to just lighting.

Improving Indonesia’s Energy Transition Strategy

Jakarta, 13 September 2023 – The energy transition is increasingly inevitable as global climate commitments strengthen. The energy sector is one of the sectors highlighted because of its intense emissions. More or less the same thing also happened in Indonesia. The Indonesian Government’s commitment to achieving net zero emission status is accompanied by a set of strategies and plans, one of which is intervention in the energy sector, especially the power generation.

Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform, explained that the electricity sector is a low-hanging fruit sector or a sector that is quite easy to decarbonize.

“A successful transition in the electricity sector will accelerate the transition in other sectors such as industry and transportation,” explained Fabby in a webinar entitled “Preparing for Indonesia’s Energy Transition & Anticipating Its Implications and Launching the Indonesia Energy Transition Dialogue”.

The Energy Transformation Program Manager, Institute for Essential Services Reform, Deon Arinaldo, added that the electricity sector has a solid enough supporting infrastructure to make the transition.

“The electricity sector provides wide-open access to decarbonization opportunities. “The technology is already available, there is potential for international funding such as JETP, there is already a supporting policy framework such as Presidential Decree 112/2022,” said Deon.

This is in line with the strategy prepared by the Ministry of Energy and Mineral Resources (ESDM). Gigih Udi Atmo, Director of Energy Conservation, Ministry of Energy and Mineral Resources stated that the government’s priority is also the electricity sector.

“In the road map that we have drawn up, the power sector will have zero emissions before 2060, between 2057-2058. The rest is from the hard-to-abate sectors, such as industry and transportation,” he said.

The existence of the will and policy support for the transition is a good thing, but this is not enough by Adam Adiwinata, ASEAN Energy Transition Outlook Consultant, IRENA.

“The effectiveness and consistency of policies must be considered so that the energy transition occurs massively and accelerates. “Indonesia must be agile in looking at a policy, whether the policy can be improved or implemented to support the energy transition in Indonesia,” explained Adam.

A consistent policy framework is one of the enabling environment points to encourage massive penetration of renewable energy. This was stated by economist Faisal Basri, who is also a member of the Indonesia Clean Energy Forum.

“Often, Indonesia’s enabling environment makes it difficult to obtain funding. Policies that are prone to change make institutions or countries hesitate to give money to Indonesia,” said Faisal.

Faisal also added that commitments such as the implementation of a carbon tax which continue to be postponed show Indonesia’s weak commitment to the energy transition.