Indonesia Can Achieve Net Zero Emission Before 2070

Jakarta, 28 April 2021 — President Joko Widodo’s speech during the Leader Summit on Climate Change which stated that he would seriously tackle the issue of the climate crisis was considered less ambitious by a number of parties. This is because President Jokowi’s statement emphasizes the FOLU sector (Forestry and Land use Conversion), while the energy sector, which will be the largest contributor to emissions in the future, was not even mentioned at all. Meanwhile, on the same occasion, a number of country leaders expressed their commitment to reduce emissions and their target to be carbon neutral. Indonesia through the Ministry of Environment and Forestry has released a 2050 Long-term Strategy on Low Carbon and Climate Resilience (LTS-LCCR) which targets that Indonesia will become carbon neutral by 2070. Institute for Essential Services Reform (IESR) ) views this target as less ambitious and shows the government’s half-hearted efforts in dealing with the climate crisis.

Responding to this, IESR continues the discussion series #Before2070 to see Indonesia’s opportunities to achieve carbon neutrality by 2070. This webinar is the second part of a series of #Before2070 webinars aimed to encourage the government to make more ambitious climate policy targets. Indonesia’s target to become carbon neutral by 2070 is considered inconsistent with the Paris Agreement commitment that was signed by Indonesia in 2015 and ratified by Law no. 16 of 2016.

Preparing a Long-Term Strategy towards being carbon neutral by 2050 is the obligation of each country that signs the Paris Agreement. However, the LTS-LCCR 2050 document that is owned by the government has become a debate and has caused controversy even among the government itself. This can be seen from the inconsistency of documents and explanations between government agencies regarding Indonesia’s carbon-neutral targets.

For example, the Ministry of Bappenas previously explained about Low Carbon Development in Indonesia (LCDI) which offered several scenarios if Indonesia became carbon neutral in 2045, 2050, 2060, or 2070 and its implication to Indonesian economic growth.

“Climate commitments must be integrated with national development programs. Indonesia’s commitment to achieve net zero-emission has been stated in the RPJMN, ”explained Medrilzam, Director of Environment at Bappenas. He also emphasized that there should be no trade-off between economic growth and efforts to reduce emissions. According to him, achieving carbon-neutral requires a lot of funds. Therefore, apart from cooperation and multi-stakeholder commitment, Indonesia needs to receive strong support from international countries.

From the energy sector, Agus Cahyono Adi, Head of the Center for Data and Information at the Ministry of Energy and Mineral Resources, said that his party is preparing to support Indonesia in achieving net-zero emission to meet energy needs with various efforts.

“The energy sector is an important sector in the net-zero emission plan because we are one of the emission contributors. In addition to reducing emissions, we are also trying to increase energy demand. Increasing renewable energy and the use of clean fuels play an important role in increasing energy demand, “said Agus.

However, his party has not dared to announce a target figure or deadline to become carbon neutral from the energy sector.

“For each choice that we will take, we need to consider the aspects of availability, accessibility and affordability,” he explained.

To achieve carbon neutrality, more innovative efforts are needed, especially through developing an investment climate such as carbon trading. Kus Prisetiahadi, Assistant Deputy for Climate Change and Disaster Management, Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves) explained that currently the Presidential Decree for the value of the carbon economy is a guideline for GHG emission reduction and low-carbon national development is still being drafted. There are at least 8 regulatory components in this Presidential Decree and the marine sector is one of the sectors that will be developed for efforts towards mitigation.

Dian Afriyanie, Lokahita senior researcher, highlighted the lack of integration across sectors and scales in policymaking. This results in policy products that often feel out of sync between one ministry/agency and another ministry/institution. 

Furthermore, Eka Melissa, Senior Advisor of The Partnership for Governance Reform, emphasized that low-carbon development should be seen as an opportunity to develop the country, be environmentally friendly while meeting the targets of international agreements.

“I see that Bappenas has seen it (as an opportunity) but other ministries seem to still see it as a proven challenge from the various documents produced. Low carbon development is still seen as an obstacle and a challenge,” she said.

Synchronization of this point of view must first of all be carried out so that the policy produced by each institution leads to the same estuary. If the point of view of each institution on an issue is different, then the final outcome of the policy will definitely not go in the same direction.

The role of local government is considered very important in achieving carbon-neutral development. Andy Simarmata, Chair of the Indonesian Planning Experts Association (IAP) gave a view that the government and other relevant stakeholders can campaign for carbon neutrality down to the regional level so that it can be translated into the RPJMD (regional medium-term development planning). Incentives for the business world, especially the pattern of business behavior, also need to be provided in addition to encouraging the technology.

For climate commitments, especially targets to be carbon neutral, each related party needs to see the current climate situation as a crisis that requires a quick and precise coping strategy. The more we postpone dealing with the climate crisis, the greater the costs and the heavier the efforts that must be made in the future.

On Climate Crisis, Accelerating Energy in Indonesia is a Must

Jakarta, 27 April 2021 – Indonesia can protect the earth from carbon emissions by encouraging the acceleration of renewable energy development. The urge for the government to be more confident, courageous, and ambitious in developing clean energy was voiced in the discussion and book soft-launching “Footprints and Pathway for Indonesia’s Renewable Energy” by Kompas journalists hold by Harian Kompas and the Institute for Essential Services Reform (IESR) (27/4).

Sutta Dharmasaputra, Editor-in-Chief of Kompas Daily, said that Harian Kompas’ editorial policy supports the acceleration of renewable energy. He stated that the current increase in the earth’s temperature is due to the use of fossil energy so that the speeding up of renewable energy will be able to keep its temperature at not exceeding 2 degrees Celsius.

“Hydrometeorological disasters in Indonesia for one year caused a loss of 22.3 trillion rupiahs. I casually calculated that if using that amount of money to buy Padang rice, it would be equivalent to 639 million boxes of Nasi Padang (Lunch Box). It’s a huge loss, ”he said.

Fabby Tumiwa, Executive Director of IESR, on the same occasion, said that over time, the climate crisis would have to be more serious.

“The study of experts states that if the global temperature rises by more than 1.5 degrees, it has broader implications for the ecosystem, food production, and the economy as a whole,” he explained.

An energy transition is an option that must be taken by policymakers to reduce greenhouse emissions. Fossil energy systems contribute 75 percent of GHGs worldwide. The Paris Agreement even mandates all countries in the world to develop renewable energy to achieve carbon neutrality by 2050.

“This means, currently, our NDC target is not compatible with the Paris Agreement. If we want emissions compatible, then we have to reach the peak (peak emission) in 2030 and have to drop drastically by 2050. If it is too late, the efforts must be more drastic and more expensive, “he said.

IESR has completed carbon-neutral modeling of Indonesia in 2050 which shows that Indonesia will be able to achieve net-zero by 2050. Even by using 100% renewable energy, the cost of energy systems will be cheaper than systems based on fossil energy.

“The electricity sector is a quick win because the development of renewable energy in this sector can be faster than industry and transportation. Indeed, the energy transition policy requires many innovations, changes in regulations, and the way we look at the energy resources we have. However, if we can do 100% renewable energy, 3.2 million new jobs will be created, ”said Fabby.

In line with Fabby, the head of the writing team, Aris Prasetyo, explained that the development of renewable energy by boosting an energy transition is something that will happen. He also shared about the energy independence he met during his visit to Kamanggih Village in Kahunga Eti Subdistrict in East Sumba.

“The community is energy-independent. The electricity comes from the Micro Hydro Power Plant (PLTMH), and even they sold the surplus to PLN. For cooking, they use biogas from livestock manure. However, when this pandemic occurred, it turned out that PLTMH customers did not get a discount on electricity rates, meaning something clean and supporting government programs and climate change adaptation was not supported, while programs that depend on fossil energy received incentives, “he said.

Aris also added that policy imbalances also occur on an industrial scale, especially in the matter of buying and selling tariffs for electricity from renewable energy. He said that even the developer felt the tariff offered by PLN is not economical for developers because the production costs are higher. As for the renewable energy tariff policy, the Perpres does not establish yet.

Questioning about renewable energy policies, Sugeng Suparwoto, Chairman of the House of Representatives Commission VII DPR RI is determined to finalize the law on renewable energy, although, according to him, many interests do not support the emergence of this law.

“Even though the existence of this law will create an ecosystem that supports the development of EBT,” added Sugeng.

On the other hand, Satya Widya Yudha, a member of the National Energy Council, views that in building energy security, the government must ensure supply security, accessibility, affordability with capability, and environmentally friendly.

“If we talk about the economy, then the renewable energy that can be further developed is PLTS. We are pumping PLTS on a large scale, “he said.

Ambitious Climate Commitment and Deliberative Policy Formulation are Keys for Indonesia to Achieve Carbon Neutral #Before2070

Jakarta, 9 April 2021.  The government through the Ministry of Environment and Forestry (KLHK) recently announced a Long-Term Strategy to achieve carbon neutrality and climate resilience. The strategy stated that Indonesia will become carbon neutral in 2070. As indicated on the strategy document, Indonesia’s emissions are targeted to reach a peak in 2030. In the formulation of a target, it is necessary to have clarity regarding policy support for each sector to reach peak emissions in 2030.

As a party to the Paris Agreement, the 2070 carbon neutral target is inappropriate and less ambitious.

Collaborating with the Yayasan Madani Berkelanjutan, ICLEI Indonesia, Walhi, and supported by the Thamrin School of Climate Change and Sustainability, IESR organized a public discussion webinar entitled “Indonesia Mampu Capai Netral Karbon sebelum 2070”. The webinar aims to be a means of public participation in responding and providing input to the government on public policies concerning the interests of everyone’s life.

In his remarks, Fabby Tumiwa, Executive Director of IESR, said that the recent increase in hydrometeorological disasters could be due to the climate crisis phenomena. This is in line with the IPCC’s Intergovernmental Panel on Climate Change report which states that an increase in Earth’s temperature by 1.1 degrees since pre-industrial times has increased the frequency and magnitude of extreme weather.

According to Fabby, the pressure from various parties, especially the government to increase its ambition in responding to the climate crisis is important.

“We want to encourage ambitious efforts that require not only a different way of thinking but also commitment and leadership from our political leaders, the president, who should be able to see that this climate crisis has an impact on the lives of many people,” said Fabby ending his remarks.

Farhan Helmy, Principal of the Thamrin School of Climate Change and Sustainability also agrees that Indonesia’s commitment to achieving carbon neutrality by 2070 is far too long. In his remarks, Farhan explained that there are at least four points that are often missed in climate discussions, i.e (1) the absence of coherence in the climate agenda and policies, (2) there is no serious effort to involve non-state actors, including cities that are spearheading the process changes, (3) the scale of action which is still at the pilot project level is not yet an institutional transformation supported by economic transformation, (4) a change of leaders without any fundamental rules on climate makes policy direction less clear.

“Indonesia cannot do this alone. The role of the state can no longer be just procedural to follow negotiations, “said Farhan.

One of the sectors that have come under the spotlight to achieve carbon neutrality is energy. It is important to understand the energy system and increase the ambition to reduce emissions in the energy sector because this sector is the largest emitter. Deon Arinaldo,  program manager of the Energy Transformation, IESR, explained that there are several steps that can be taken to decarbonize the energy system. 

“A more ambitious energy transition scenario can be achieved if, (1) there is no new coal-fired power plant (PLTU) construction starting from 2025, (2) The initiative of the Ministry of Energy and Mineral Resources to replace 13.5 GW of fossil plants with renewable energy is implemented, and (3) carries out the phase-out Steam Gas Power Plant (PLTGU) and Diesel Power Plant (PLTD),” he said.

Deon also added that technically and economically, Indonesia is able to carry out the steps above and decarbonize the energy system before 2050. What is needed is comprehensive political commitment and support.

Several years ago, Bappenas released a report on Low Carbon Development Indonesia; which shows that the Indonesian economy is increasing even though we use the Low Carbon Development concept in development. So the doubt and assumption that doing development with a low carbon concept is expensive, and will have an impact on stagnating economic growth have been actually answered by this report clearly.

Anggalia Putri, Knowledge Management Manager of Yayasan Madani Berkelanjutan, added that Indonesia has an interest in achieving the target of 1.5 degrees C rather than 2 degrees to avoid climate risks such as hydrometeorological disasters, for example, increasing floods. In the Indonesian context, many unique ecosystems will be destroyed if we cross the 1.5 degree limit.

“There is a significant difference in climate impacts between 1.5 and 2 degrees, so we stick to it to reach 1.5 degrees,” said Anggalia.

Furthermore, Anggalia added that with the existence of a net sink in the FOLU sector in 2030, Indonesia could actually reduce its deforestation quota.

Ari Mochamad, Country Manager of ICLEI Indonesia, emphasized the role of cities that are also crucial in reducing emissions and the journey towards carbon neutrality. “The city contains both problems and solutions. 70% of greenhouse gas emissions come from urban activities, but on the other hand, the city is a place that can be managed. Several leaders and non-government actors have made the issue of climate change a necessity because its impacts are already before the sight, “he concluded.

Several cities in Indonesia are members of the Global Covenant of Mayors (GCoM), a commitment from city leaders across the country who realize that climate change is a necessity so that it changes the mindset in decision making. 

Indonesia’s target to achieve carbon neutrality is an important issue regarding transgenerational justice between our generation and our children and grandchildren generation.

Yuyun Harmono, WALHI’s Climate Justice Campaign Manager emphasized that Indonesia’s target to become carbon neutral by 2070 is way too late.

“It is clear that it is too late if our target to be carbon neutral is in 2070, many country leaders and even the UN Secretary-General have stated that the current condition is a climate emergency, we must be ambitious in setting targets and taking action. We need something (policies) that are fast, both developed and developing countries.”

On the other hand, there are many loopholes to shrug off ambitious emission reduction obligations such as carbon trading offsets schemes to developing countries. This scheme will make developing countries have to bear a double burden in the future, namely the offset burden of developed countries and the emission reduction targets of their respective countries.

Regarding justice across generations, Yuyun emphasized that we should ask what we want to pass on the earth’s condition to our future children and grandchildren.

“Are we going to ensure they are safe from the ecological crisis and the climate crisis? Or are we leaving something that will make them unfortunate in the future? In climate justice, justice between generations is also an important context, so it must be considered. We want to demand more ambitious climate policies that reflect justice between generations and climate justice, “said Yuyun at the end of his presentation. 

Closing the webinar, Dian Afriyanie, committee member of the Thamrin School of Climate Change and Sustainability, highlighted two points as the key takeaways of the webinar. First, the importance of coherence between government policies in addressing the root of the problem; and policy coherence across sectors, locations and government hierarchies.

“The results of the IESR and Madani research show that the government’s target for emission reduction in the energy sector and FOLU can still be increased and accelerated, so the government should not only carry out procedural negotiations but also see and refer to the findings of this research,” said Dian.

Second, the deliberative process in policy formulation. Participation and representation of various groups is indeed a challenge in itself during this pandemic, however, in the formulation of public policies this process must be pursued, so that the policy products really belong to the public. 

Musrembang Paser: Transitioning towards green economy development

Jakarta, April 1, 2021, the Institute for Essential Services Reform (IESR)  presented on the Transition towards Green Economic Development in Paser Regency, East Kalimantan in Musrenbang (Musyawarah Rencana Pembangunan Daerah), and Public Consultation of the RPJMD (the regional mid-plan development) 2021-2026 Paser Regency (1/4). This opportunity was a follow-up to the IESR meeting with Bappeda East Kalimantan and Paser Regency in 2020.

In front of the Regent of Paser and his staffs, IESR encouraged the Paser government to no longer rely on coal in both the energy and economic sectors but began to diversify the economy to increase Paser’s economy such as industrial development, including the agricultural industry (rice, maize, shallots), the tourism industry, and the renewable energy industry.

Energy Transition is Happening, Coal Economic Contribution Will Fall

To date, Paser has depended on the Gross Regional Domestic Product (GRDP) on coal. It makes Paser vulnerable to economic turmoil due to decreasing demand for export coal. It is because many coal importing countries have adopted energy transitions. Particularly, since 80% of Paser’s coal production is exported so that Paser’s economic growth is strongly influenced by Reference Coal Prices (Harga Batubara Acuan, HBA).

“Coal export destination countries such as China, India, Korea, and Japan are very ambitious in making an energy transition. Furthermore, many countries to overcome the threat of the climate crisis are moving from fossil energy to renewable energy. It is estimated that in 2050 world coal demand will fall by 40-90%. Of course, this decline in demand will occur gradually soon. It warns the regions that have been the largest coal producer, such as East Kalimantan, “said Fabby Tumiwa, Executive Director of IESR.

This situation was also acknowledged by HM Aswin, Head of Bappeda East Kalimantan, “Although the structure of East Kalimantan’s GRDP is still dominated by the mining and quarrying sector, the declining coal price and low demand for coal from export destination countries still make the economic growth of the coal sector minus 4.58 in East Kalimantan.”

The contribution of the coal sector to the GRDP of Paser is very large, more than 70%, but the GRDP per capita of Paser Regency has been relatively stagnant in the last decade. This indicates that the mining industry has very limited leverage to support economic growth. For this reason, the government is required to develop a new economic sector.

“Coal production is relatively stagnant, but 95% of this production activity is carried out by one company only. So that in 2016 there was a decline in the production of the mining sector, especially coal, causing negative economic growth in Paser Regency 2016 (Diskominfo Paser, 2019), “added Fabby.

A similar opinion was conveyed by the Chairperson of the Paser Regency DPRD, Hendra Wahyudi, on the same occasion when he conveyed the main thoughts of the DPRD in the context of the preparation of the Paser Regency Work Plans 2022 and the Regional Medium Term Development Plan Public Consultation of 2021-2026. He emphasized that the economic contraction during COVID-19 was significantly impacted Paser, with economic growth of minus 2.77 in 2020.

“We suggest taking strategic steps by maximizing the non-mining economic sector such as the agricultural, processing, and trade industries so that they do not depend too much on the mining and quarrying industry,” he said.

The IESR analysis shows that the agriculture, fisheries, and hunting sectors absorb more labour than mining, which only ranks fourth. Moreover, the agricultural industries have experienced less significant economic fluctuations when compared to the mining sector.

Paser’s Agricultural Industry Included in the Focus of Green Development

The direction of the East Kalimantan Bappeda (Agency for Regional Development) as placing Paser as the center of agriculture and food for the New Capital City of Indonesia (IKN), especially for rice, onion, and chilli commodities, will encourage Paser to improve infrastructure that supports the agricultural industry and protects Sustainable Food Agricultural Land (LP2B).

Increasing the productivity of rice fields can also increase employment in the agricultural sector. The calculation of the increase in land productivity to 7 tons/ha and assuming a fixed amount of land, then Paser Regency can absorb around 9,479 workers. This figure is equivalent to the number of workers in the mining sector. It means that it can absorb the workforce affected by the decline in mining activities.

Furthermore, through the IESR calculations, Paser also has enormous renewable energy potential, with the successively technical production of Rooftop Solar of nearly 81000 GWh/year, water energy of 721 GWh/year, and pumped hydro storage (PHS), 3,5 thousand GWh/year. The development of the electricity sector based on renewable energy will be able to supply electricity for IKN and other areas around Paser.

IESR also revealed that maximizing the potential of the tourism sector in Paser will encourage economic growth. The Paser government could increase the tourism sector budget to attract more tourists. By taking into account infrastructure development and road access will be essential to support the development of the tourism sector.

“Paser Regency has Corporate Social Responsibility (CSR) funds of 58 billion in 2020. This fund can be used for the development of MSMEs and human resources more optimally,” said Fabby.

He suggested that the process of economic transformation requires careful planning. The Paser government must plan a more comprehensive study; the impact of the energy transition on the coal industry, local economy, environment, and health so that Paser can make a road map for Paser’s economic transformation. Another thing that needs to be prepared and deepened is the diversification of the economy, its supporting considerations, and policies.

Regent Paser in his speech also said that his party would prioritize the agricultural sector.

“I hope the agriculture department can compile a work plan to improve the agricultural program in Paser. We have large tracts of land in 139 villages. Activating this land with modern agricultural technology will open up job opportunities for youth. Agriculture will be our focus, ”promised the Regent of Paser, Fahmi Fadli.

‘Kampung Surya’ Initiatives (The Sun Village) Invites Residents to Work in the Solar Energy Sector

pelatihan anak muda memasang plts atap di jakarta

As the name implies, the colourful walls in the houses immediately greet the eyes when entering Kampung Warna Warni at RW 3, Kebon Pala Village, Cililitan, East Jakarta. Gathering at the Citizens’ Hall (Balai Warga), about 10 (ten) people who were dominated by young people, wearing masks to meet Covid-19 protocols, wanted to get technical training on the installation of rooftop solar held by IESR in collaboration with one of the solar PV development companies, ATW Solar, to residents who are members of FAKTA (Forum Warga Kota Jakarta), or Jakarta City Citizens Forum.

The declining cost of solar and wind in the past decade has made the use of renewable energy even more massive. Currently, with an investment of IDR 15-20 million, people can enjoy environmentally-friendly electricity from the solar rooftop for up to 25-30 years. In the labor sector, various groups of people, without higher education requirements, can take part in carrying out solar panel installation by following short practical training and are applicable. 

However, if we look deeply at the lifetime of solar rooftops and the calculation of the payback period, the investment value is competitive. According to the IESR calculation, the return on investment period ranges from 7 – 10 years. After this period, it can be said that solar rooftop users enjoy cheap, clean, and environmentally friendly electricity.

For 2 (two) days (25-26 / 3), all participants enthusiastically engaged in the training facilitated by trainers from ATW Solar. On the first day, participants received a basic understanding of roof-top PV technology, various installation networks, components, and safety induction during installation. Meanwhile, on the second day, despite the intense heat, the participants, who were dominated by teenagers, remain enthusiastic to practice the installation of solar panels at the Citizens’ Hall (Balai Warga). ATW Solar also opens opportunities for participants who have the potential and interest in rooftop solar power plants to become freelance workers for ATW Solar so that they can handle projects in the nearby area. This was confirmed by Chairiman, VP Retail, and Residential ATW Solar. He revealed that in terms of job opportunities, installers will be needed in the future. According to him, the Indonesian government has set a target of one million solar rooftops. However, until now only about 3000 PLN customers have used rooftop solar.

“Currently, only 3,000 PLN customers are using the rooftop solar PV, whereas the target is one million users, so there are still around 997 thousand houses that will install rooftop PV. If for one installation we need 4-5 people, meaning that we need more personnel to work on it,” said Chairiman.

The Executive Director of IESR, Fabby Tumiwa, in his remarks, stated that the Kampung Warna Warni is now called as Kampung Surya initiative must belong to the local community. So that the program will sustain.

“This first batch was trained by ATW and continued for on-the-job training and we hope that some can become freelancers for the rooftop PV installers. Later on, those who participated in this training can train other people in this village or even in the next village” said Fabby.

A similar sentiment was conveyed by the chairman of the Jakarta City Citizens Forum (FAKTA), Azas Tigor Nainggolan, “Rooftop PV is a technology that will be widely used in the future, so we must be prepared to take the offered opportunity, not only become spectators.”

Bagas Septiansah, Head of the Regional Youth Organization (Karang Taruna) RT01 RW 03, Kelurahan Kebon Pala, who was one of the participants admitted that he could understand the installation process training easily.

“Previously, I only saw solar panels in large buildings in Jakarta without me knowing what it was. However, after this training, I got a better understanding of the use of solar panels and the process of using solar energy into electrical energy for daily activities,” he said.

Bagas is committed to sharing the knowledge he has gained with the youth group he leads as well as maintaining of the solar panels that have been installed at Balai Warga. 

One of the participants, Iskandar, apparently has been installing off-grid solar panels for a long time, only he felt that his knowledge had increased after attending the training, especially about hybrid and on-grid PV rooftop.

“At home, after installing an off-grid solar panel, I felt that there was a reduction in electricity payments because I use solar cells and PLN electricity alternately. With the 40 Wp power solar PV, my electricity bill payments can go down by 20 percent,” he added.

This Kampung Surya initiative is the first in Jakarta, where it’s not only installing Solar PV but also empowers residents as skilled personnel for installers. With this initiative, it is hoped that clean energy will be increasingly enjoyed by all people because clean and high-quality energy is the right of every citizen. Through the training scheme and the installation of PV mini-grid for public facilities, the community can see and enjoy the benefits of installing a rooftop PV mini-grid, such as the emergence of jobs, getting clean electricity, and also being environmentally friendly. 

Ridwan Kamil Invites IESR to Share Insights on the Draft Bill on Renewable Energy

Bandung, 26 March 2021 — Elected as the General Chairperson of the Regional Association for Producing Oil and Gas and Renewable Energy (ADPMET) for the term of 2020-2025, the Governor of West Java, Ridwan Kamil, clearly stated in his inauguration that ADPMET would focus on developing renewable energy or waste-based biofuel, animal and plant excrement.

The seriousness of ADPMET regarding renewable energy development and energy transition was shown by Ridwan Kamil’s initiative to invite parties who consistently utter these two issues to discuss the Draft Bill on New and Renewable Energy (RUU EBT) at the West Java Governor’s office (26/3). Invited, the Institute for Essential Services Reform (IESR) provided views and exposures related to renewable energy and the RUU EBT.

Fabby Tumiwa, Executive Director of IESR, explained that, although the energy transition movement has globalized significantly and many countries in the world such as the European Union, India, China, Chile are developing renewable energy massively, Indonesia still records very low achievements in terms of energy mix targets renewable. Of the 23 percent in 2025, Indonesia was only at 11.5 percent at the end of 2020.

“In 2020, there will only be an additional 187.5 MW of installed renewable energy generating capacity. It means that it barely grows about 1.8 percent annually. Very slow, “he explained.

Meanwhile, based on the results of the latest IESR study on the technical potential of PLTS entitled “Beyond 207 Gigawatts: Unleashing Indonesia’s Solar Potential”, Indonesia has the potential for solar energy that far exceeds the official figures released by the Indonesian government.

“Indonesia has the potential for solar PV (photovoltaic) to reach 3,000 – 20,000 GWp. This potential is 16 to 95 times higher than the official estimated potential data released by the Ministry of Energy and Mineral Resources, which was 207 GWp (ESDM, 2016). If this technical potential is utilized, it can produce electricity of 27,000 TWh per year, almost 100 times the current electricity demand, “he said.

In his explanation, Fabby also explained the technical potential that West Java province possesses, based on IESR calculations using geospatial data by identifying suitable land for solar PV. Mapping results show that with a maximum area of ​​16,746 km2, West Java has a maximum technical potential for solar power of 687 GWp.

Such an immense potential of renewable energy should be a luminary in the RUU EBT. As it is also clearly written as a basis for consideration of the drafting of the RUU EBT, energy transition needs to be accelerated towards a sustainable national energy system. However, the RUU EBT, which is still being discussed in the DPR, includes elements of new energy. It means that this bill does not focus on supporting renewable energy only. The definition of new energy is energy produced by new technology with non-renewable or renewable energy sources (PP 79/2014) such as nuclear, fossil energy processing such as coal gasification, and also liquefied coal. It implied that the RUU EBT is still dominated by non-renewable energy, therefore, it is against the principles of the sustainable energy system itself. 

IESR views that Indonesia needs a law that focuses on supporting renewable energy. Indonesia can refer to India or China, which already has a Renewable Energy Law so that their renewable energy development is growing rapidly.

“The existence of the Renewable Energy Bill will show the seriousness of the government in developing renewable energy so that it will give a positive signal to stakeholders, especially investors. Currently, regulations regarding renewable energy are at the level of weaker regulations, such as Presidential Regulations, Ministerial Regulations so they are vulnerable to changes and preferences of sectoral ministers, “added Fabby.

Furthermore, in his explanation, Fabby encouraged the EBT Bill to specifically state policies that support renewable energy. Firmness in this policy will be beneficial in creating a market/demand for renewable energy, setting a viable renewable energy price, providing incentives/support for renewable energy exploitation, providing renewable energy development funds, establishing renewable energy governance and institutional arrangements, and increasing community participation in renewable energy development.

Responding to IESR’s explanation, Ridwan Kamil expressed his gratitude and immediately appointed the West Java ESDM Office to explore the technical potential of renewable energy in West Java for better development.

 

The Government of Jambi signed an MoU with IESR to accelerate energy transition

Committed to Achieves Regional Renewable Energy Mix Target 2025 and Boosts Energy Transition, Jambi Government Signed MoU with IESR

Jambi has a regional renewable energy mix target of 24 percent in 2025 and 40 percent in 2050. This target has been stipulated in local regulation, Perda No. 13 of 2019, concerning the 2019-2050 Regional Energy General Plan (RUED). The target number of the Jambi renewable energy mix is larger than the national, which are 23 percent and 31 percent in 2025 and 2050 respectively.  To overcome challenges, such as the different understanding of energy transition definition, the Jambi government, through the Department of Energy and Mineral Resources (ESDM), signed the MoU with Institute for Essential Services Reform (IESR). Moreover, increasing human resources capacity and enabling supporting infrastructure are also Jambi ESDM’s need to develop renewable energy.

“The potential for renewable energy in Jambi is quite impressive. However, it is not yet a priority, so we should start to develop it with a correct understanding of the energy transition. For this reason, we are working with IESR to define the right direction for maximum results,” said the Head of the Jambi ESDM, Harry Andria, at the Signing of the MoU between the Jambi Province ESDM Service and IESR (22/3 ).

Harry thought that understanding the definition of the energy transition at the regional executive and legislative levels will help in implementing the programs to achieve regional renewable energy targets. 

Agreed,  Fabby Tumiwa, Executive Director of IESR on the same occasion, also stated that the energy transition has become a phenomenon that is continuously being adopted by many countries in the world. They are committed to fulfilling the Paris Agreement to keep the earth’s temperature less than 2 ° C. 

“Energy transition is unnegotiable. Accelerating renewable energy requires the commitment of all stakeholders, both regional leaders, policymakers, and the affected communities. Instrumental collaboration is needed to achieve the RUED target and build a joint consensus for the application of renewable energy,” he said. 

Fabby also views that the implementation of the energy transition and the achievement of renewable energy targets in Jambi will be advantageous for Jambi in the future. Jambi will continue to develop its economies, such as in the industrial, business, agriculture, fishery, and tourism sectors. It will require more energy, especially renewable energy.

IESR will provide technical assistance to the Jambi Government in increasing the utilization of renewable energy potential, energy conservation, and energy transition. The event was closed by virtually signing the MoU document between the Jambi ESDM Agency and the IESR.

IESR: Indonesia Can Achieve Carbon Neutrality Before 2060

Press Release
For Immediate Release
Jakarta, 25 March 2021 – In an effort to fulfil the mandate of the Paris Agreement, the Government Indonesia through the Ministry of Environment and Forestry (KLHK) as the national focal point for the UNFCCC, announcing a Long-Term Strategy for Reducing Carbon Emissions and Climate Resilience 2050 (Long-term Strategy on Low Carbon and Climate Resilience (LTS-LCCR) 2050. This meeting was also attended by the relevant ministries. Despite positive progress, the Institute for Essential Services Reform (IESR) looking at Indonesia’s road map towards low carbon by 2050, as showcased in the presentation of the LTS-LCCR 2050 document, was less ambitious and did not meet the target
Paris Agreement.
Several things listed in the LTS-LCCR 2050 document:
  1. The achievement of Indonesia’s first NDC is targeted in 2030, then Indonesia will achieve net-zero emission by 2070;
  2. In mitigation efforts, the LCCP scenario (low carbon scenario compatible with Paris Agreement target) indicates an ambitious target to be implemented in the AFOLU sector (agriculture, forestry and land use), energy, industrial processes and uses products (IPPU), as well as waste;
  3. On a low carbon and climate-resilient policy direction, it is estimated Indonesia will reach the highest peak (peaking) in GHG emissions by 2030 in AFOLU and energy sectors before finally reaching net zero emissions by 2070. In the calculation of emissions, the peak in 2030 will reach 1163 million tons and these emissions will decrease to around 766 million tonnes of CO2e by 2050;
  4. For the energy sector, a transition scenario and LCCP will be an option to be applied. In the more ambitious LCCP target, the primary energy mix will be 34% coal, gas 25%, oil 8%, renewables 33% in 2050. The use of coal will decrease to 205 million tonnes (293 million tonnes of coal);
  5. Additional renewables for generators of around 38 GW in 2035 and will be prioritized for Solar Power Generation due to the increasing investment costs low. In addition, emission reduction will be encouraged through the following actions:
    1. Provision of electricity through EBT generators,
    2. Application of energy efficiencies such as in buildings and public street lighting (PJU),
    3. Use of Biofuels;
    4. Implementation of biomass co-firing to reduce coal consumption in 52 PLTUs,
    5. Utilization of electric vehicles with a target of 2 million cars and 13 million motorbikes in 2030,
    6. Transitions towards low-carbon fuels and clean generation technologies such as the use of CCUS / CCS ( carbon capture, utilization and storage/carbon capture and storage ) and hydrogen
Responding to the explanation regarding Indonesia LTS-LCCR 2050, IESR responded as follows:
  1. IESR responded positively to the peak emission target in 2030. This will provide clear medium-term targets for climate change mitigation action plans in Indonesia. However, it needs clarity regarding the support of policies and regulations that allows each sector to transition quickly and reach the peak emission by 2030;
  2. The achievement of net-zero emissions in 2070 is too long and does not match the Paris Agreement. To be consistent with the Paris Agreement and support restrictions on global temperature (below 1.5°C), then Indonesia’s GHG emissions must have decreased reach 622 million tonnes of CO2e in 2030 (excluding the AFOLU sector) and will reach net-zero in 2050 1 ;
  3. A stronger effort is required, especially to be able to shift from the use of coal. Indonesia needs to gradually stop using coal by 2037 and increase its renewable energy target to at least 50% by 2030 2 ;
  4. Each sector needs to establish mitigation measures that is credible, transparent, and measurable in order to be on track with the Paris Agreement. Based on several global modelling, such as Integrated Assessment Models (IAMs), Deep Decarbonization Pathway Project, Energy Watch Group/LUT University, there are several parameters that could be a reference for Indonesia in measuring the suitability of the achievement of GHG emission reduction with Paris Agreement targets.

For the electricity and transportation sector, parameters among others3 :
a. Electricity

    1. The intensity of emissions from the electricity sector; should be in the 50-255 range gCO2 / kWh in 2030 and  in 2050
    2. The renewable energy mix of electricity generation; up to 50-85% in 2030 and 98-100% in 2050
    3. Electricity generation mix from coal PLTU; down to 5-10% by 2030
      b.Transportation

      1. Emission intensity from the land passenger transportation sector; be in the range of 25-30 g CO2/pkm by 2030
      2. Low-carbon fuel mix; reaching 20-25% of the total energy demand in the transportation sector by 2030

5. The IESR study on Indonesia’s energy transition scenario shows that Indonesia can achieve a primary mix of renewable energy of 69% by 2050 with increase the capacity of renewable energy generation to a minimum of 24 GW in the year 2025, build 408-450 GW of renewable energy generation by 2050, and stop the construction of a new coal power plant since 2025 and retire Coal Power Plant early.

6. There is a need for increased investment and research encouragement towards innovation and development of renewable energy technologies such as hydrogen in order to be immediately implemented and optimized for achieving net zero-emission.
7. IESR supports the use of sustainable biofuels and electric vehicles. The Climate Transparency Report 2020 makes clear that biofuels are sustainable that does not leave a carbon footprint, the use of electric vehicles, and stricter fuel efficiency standards would reduce GHG emissions in particular from the transport sector significantly. In addition, the percentage of fuel that is low in carbon in the transport fuel mix should increase to about 60% in year 2050.
References:
1 CAT (nd). Indonesia country summary
2 Climate Transparency (2020) .The Climate Transparency Report 2020
3 CAT (2020). Paris Agreement Compatible Sectoral Benchmark
4 IESR (2020). National Energy General Plan (RUEN): Existing Plan, Current Policies Implication and Energy Transition
Scenarios

Electricity surplus in Indonesia, can it be exported?

Export of PLTU electricity will not be effective

The government through the Ministry of Energy and Mineral Resources is reviewing the possibility to export electricity to Singapore. This is based on the electricity supply surplus experienced by PLN. With the penetration of power plants from the 35 GW project, and a decrease in domestic demand for electricity. Indonesia will experience a power supply surplus of around 40%. This numerous surplus of electricity supply occurred because of the mismatch of assumptions during project planning and preparation.

“The 35 GW project is made with an economic growth assumption of 7%. With this economic growth, it is projected that electricity demand will increase by around 8%. We know that over the past 5 years, our economic growth averagely only 5% every year, and electricity demand growth is only around 4%, plus in 2020 there is the Covid-19 pandemic which has a direct impact on the economic contraction,” explained Fabby Tumiwa, Executive Director Institute for Essential Services Reform (IESR) in the Market Review segment by IDX Channel.

On the same occasion, Fabby responded to the government’s electricity export plan.

“What needs to be understood is that the export-import scheme for electricity is not impossible, but it needs to be reviewed again for its effectiveness in the current context,” said Fabby.

In the ASEAN context, discussions on the export-import of electricity among ASEAN countries began 15 years ago. Indonesia itself has signed an MoU (Memorandum of Understanding) on ​​the export of electricity with Tenaga Nasional Berhad (TNB) Malaysia to export electricity from the Sumatra system to Peninsula Malaysia. This cooperation takes into account the peak load period between Sumatra and Peninsula Malaysia. It is noted that the Sumatra system experiences a peak load period of electric power at 17.00 – 22.00 while the peak load of Peninsula Malaysia occurs at 8.00 – 16.00. Seeing the difference in the peak load period of electricity, the process of exporting electricity from the Sumatra system to Peninsula Malaysia is possible. This project is planned to start rolling in 2028.

Potential for Foreign Market Revenue

Regarding the potential for the electricity export market, within Southeast Asia, ASEAN countries have talked a lot about clean electricity. This is because several ASEAN countries already have targets for reducing greenhouse gas (GHG) emissions and even zero emissions. Last year, Singapore said it would buy 100 MW of electricity from Malaysia, which comes from renewable energy.

“It needs to be realized and understood that the current global trend is a movement towards renewable energy,” added Fabby.

According to him, based on this fact, electricity from renewable energy will be more attractive to the global market because it is related to the GHG emission reduction agenda of each country. Indonesia needs to think about this, if we want to seriously enter the global market, especially for the issue of electricity exports. Another thing that is no less important to think about is the carbon border tax that will begin to be calculated for each commodity in global trade, including electricity.

“It would not be nice if we built a lot of PLTUs (coal-based power plant), then we exported the electricity, so Indonesia must bear the emissions. When our GHG is high, our reputation (Indonesia-ed) in the global arena will be less good, “said Fabby.

Furthermore, Fabby stated that if the aim is to absorb surplus electricity, electricity exports will not solve the problem in the short term and this solution is not a sustainable solution. The alternatives offered by Fabby in addition to electricity exports to overcome the problem of electricity surplus, i.e reconsider and renegotiate.

 

Reconsider means that the Government must have the courage to reconsider and even stop the construction of a new coal-power plant (PLTU) and divert it for renewable energy generation. This strategy will avoid oversupply in the next 2-3 years as well as to meet the renewable energy mix target of 23% by 2025. Currently, there are around 7.5 GW of PLTU power plants from the 35 GW project that are still in the planning process (permits, contracts, and others). By diverting the coal-power plant project into renewable energy generation, PLN will have low-carbon power plants, and automatically reduce greenhouse gas emissions from the energy system sector.

Meanwhile, renegotiation means the government’s effort to negotiate with PLTU entrepreneurs to reduce the production capacity of old PLTUs, in order to provide room for renewable energy generation in the energy system. To encourage the penetration of renewable energy in Indonesia’s energy system, it is necessary to reduce the capacity of the current PLTU.

Post-Covid-19 economic growth is projected not to turn positive quickly. Likewise, the growth in demand for electricity. So reconsidering, and stopping the construction of a new PLTU will avoid an oversupply of electricity in the next 2-3 years. Because when there is an oversupply of electricity, the costs (government subsidies) are expensive.