Kompas | Fossil Fuels Dominant Energy Supply, Government Should Push Renewable Energy Faster

The writer of Indonesia Energy Transition Outlook (2023), a senior researcher at IESR, Handriyanti D Puspitarini, explained that Indonesia’s gross domestic product (GDP) grew 5.72 percent in the third quarter of 2022, in line with increased economic activity as before the pandemic. However, more budget allocations support fossil energy in the economic recovery program.

Read more on Kompas.

Strengthen Indonesia’s Commitment to Climate Change

CAT

Jakarta, December 6, 2022 – Nowadays, climate change in the world affects increasing the intensity of climate disasters and threatens human life and biodiversity. Thus, government commitment and concrete targets are needed to reduce emissions, like setting a more ambitious target in the Enhanced Nationally Determined Contributions (NDCs) document, which Indonesia submitted in September 2022. Its document contains an increase in the target for reducing greenhouse gas (GHG) emissions by around 2%.

Based on the latest NDC document, Indonesia will reduce emissions with an unconditional scenario of 31.8% and international assistance (conditional) of 43.2% in 2030. However, based on an assessment of Indonesia’s climate targets and ambitions by the Institute for Essential Services Reform (IESR) which is a member of the Climate Action Tracker (CAT), a consortium of three think tanks that monitors and assesses climate change policies in 39 countries and the European Union. IESR and CAT estimate that Indonesia’s NDC has not been linear, with a target of 1.5°C. It’s more robust numerically but still not driving further climate action. Indonesia is likely to achieve its targets (except forestry) without additional effort, while its emissions are almost double today. For this reason, Indonesia needs to update the Business-As-Usual Scenario (BAU) so that it is linear with more vital targets.

“Indonesia contributes to global warming. We need a more ambitious greenhouse gas (GHG) reduction target. The later we block GHG, the greater the risk of climate disaster. For example, floods and tornadoes indicate that the costs to deal with these situations are also higher, and an appropriate solution is needed. For this reason, we need to calculate the environmental costs for climate change mitigation and adaptation,” explained the Executive Director of IESR, Fabby Tumiwa, at the launch of the results of the CAT assessment of Indonesia’s climate action and policies.

Shahnaz Nur Firdausi, Energy, and Climate Researcher, IESR, stated renewable energy only account for 13.5% of the power generation mix in 2021. Indonesia needs to make substantial progress in meeting the 23% renewable energy target by 2025. Several studies have shown how Indonesia can increase its renewable energy potential far beyond current plans and supply 100% of its electricity from renewable sources by 2050.

“Although coal still plays a major role in Indonesia’s electricity system, the government has planned to discontinue the PLTU. However, to meet the temperature limit of 1.5°C, coal use in Indonesia must decrease by 10% by 2030 and be phased out by 2040. Indonesia will need significant financial support to plan for the retirement of PLTU under the Paris Agreement,” Shanaz explained.

Deputy Director for Environmental Law Enforcement at National Development Planning Agency (Bappenas), Erik Armundito, emphasized that his party has a low-carbon development policy. It’s integrated with the national priorities of the 2020-2024 RPJMN, complemented by strategy indicators and clear targets every year.

“The macro indicators mean percentage of potential GHG reduction with a target of 27.3% in 2024 and the percentage of reduction in GHG intensity with 31.6% in 2024. Setting this target is Indonesia’s step forward in environmental preservation. In addition, Bappenas has the AKSARA application for monitoring, evaluating, and controlling the reduction of GHG emissions resulting from low-carbon development,” explained Erik.

Madani Foundation Executive Director Nadia Hadad said collaboration between various parties is needed to encourage the achievement of the 1.5°C targets. Various parties must have a role and contribute.

“We all have a role. This CAT report is not to criticize but to encourage better steps. Everything we have done to save the earth; for this, we need accountability and transparency,” said Nadia Hadad.

Mahawan Karuniasa, Chair of the Indonesian Network of Climate Change and Forestry Experts (APIKI), said carbon emissions produced by all countries in the world are projected to be no more than 33 gigatonnes in 2030 to keep the earth’s temperature no more than 1.5°C. However, the estimated carbon emissions produced reach 58 gigatonnes.

“If there is NDC implementation in all countries, then the estimated emissions can decrease to 53-56 gigatonnes in 2030. It means there is still a huge gap between 20-23 gigatonnes. When all countries, including Indonesia, cannot fill this gap, we can reach above 1.5°C,” said Mahawan.

Sonny Mumbunan, an economist and researcher from the Research Center for Climate Change at the University of Indonesia, believes it is also necessary to discuss the climate finance section in depth in the Climate Action Tracker report.

“When Indonesia became a member of the G20 with the narrative of having high economic growth, this became a dilemma for Indonesia. Remember, Indonesia also still needs funds from other countries. It also affects how we approach the energy sector, the land-based sector as well as the loss and damage sector. It seems that Indonesia needs a different approach based on its profile, which is between developed and developing countries,” said Sonny.

Climate Action Tracker is an independent scientific analysis initiative that tracks countries’ climate actions and measures them against the globally agreed Paris Agreement goal of holding warming well below 2°C and pursuing efforts to limit warming to 1.5°C. CAT has provided an independent analysis of around 40 countries since 2009. CAT members include Climate Analytics, the New Climate Institute, and the Institute for Essential Services Reform (IESR), which joined as partners in 2022.

CNN | The Government Requirements When Providing Subsidies for Electric Motorcycles

Executive Director of the Institute for Essential Services Reform (IESR), Fabby Tumiwa, explained the Government needed to explain the amount of the IDR 6.5 million subsidies in more detail. In addition, the Government also needs to determine the criteria for the electric motorcycle that can get assistance.

Read more on CNN.

Magnifying the Ambitious Climate Action from Business Sector

Direktur Eksekutif IESR

Jakarta, November 30, 2022 –  The Indonesian government needs to show strong attention to climate mitigation efforts by increasing commitment and may significantly reduce greenhouse gas emissions. The Executive Director of the Institute for Essential Services Reform (IESR), Fabby Tumiwa, stated that rising global temperatures are worsening the climate crisis. He conveyed his speech at the Astra Green Energy Summit 2022 with the theme “Real of Action on the Energy Transition Journey Towards a Sustainable Environment.”

“Since the United Nations Framework on Climate Change Conference (UNFCCC) document was agreed upon in 1992, most countries ratified its documents in 1994. Thus, all climate change negotiations are directed at preventing the earth’s global surface temperature increase,” said Fabby Tumiwa.

Quoting Climate Action Tracker 2022 data, said Fabby, Indonesia’s climate policies in the energy sector are deemed insufficient to withstand the increase in the average global temperature below 1.5°C as agreed at the COP 26 Summit in Glasgow in 2021. For this reason, Fabby argues that global greenhouse gas (GHG) emissions must peak in 2030 and then decline if Indonesia wants to prevent a rising temperature above 2°C, which has far-reaching implications.

“This means ambitious action is needed, especially for G20 states responsible for global greenhouse gas emissions (GHG). Reducing GHG emissions must also be carried out by economic actors. If it is only the government’s responsibility for its reduction, I think it will be difficult,” explained Fabby Tumiwa.

Fabby explained that the decarbonization process needs to be carried out comprehensively because it is related to Indonesia’s energy supply structure. Indonesia’s primary energy supply for electricity generation is mainly based on fossil fuel. The increase in fuel consumption was also relatively high, marked by the rise in motorized vehicles.

“Since the last ten years, Indonesia has replaced fossil fuels with biofuels. Until 2021, the proportion of fuel substituted for biofuels has reached 14%. Thus, the use of low-carbon fuels needs to be increased to 40-60% in 2040. This means we need to encourage the use of synthetic fuels other than biofuels,” said Fabby Tumiwa.

Energy and Mineral Resources Minister, Arifin Tasrif, said business entities are expected to be involved in accelerating the energy transition. For example, they apply energy efficiency throughout the business chain and develop technological innovations and clean industries. They are also expected to mitigate the impact of the energy transition in the business sector and supply chain.

“To overcome the obstacles to the energy transition, synergy between stakeholders, the government, the media, NGOs, and the private sector is needed to achieve zero emissions,” said Arifin.

Observing the Efforts to Increase Electricity Consumption in Indonesia

Sinergi Stakeholder dalam Upaya Peningkatan Elektrifikasi dan Konsumsi Listrik per Kapita di Indonesia

Surabaya, November 25, 2022 – Electrical energy is one of the human needs that integrates into daily needs. Increasing access to electricity through 100 percent electricity ratio also needs to be coupled by providing energy sources that are more environmentally friendly.

Akbar Bagaskara, Electricity System Researcher, Institute for Essential Services Reform (IESR), in a public discussion forum with the theme “Stakeholder Synergy in Efforts to Increase Electrification and Per Capita Electricity Consumption in Indonesia” organized by the Directorate General of Electricity, Ministry of Energy and Mineral Resources, stated that there are five countries in ASEAN that have not achieved a 100% electrification ratio, such as Cambodia, Laos, Myanmar, Indonesia, and the Philippines.

“Based on data from the ASEAN Center of Energy as of 2021, Indonesia has an electrification ratio of 99%, followed by the Philippines at 97%, Laos at  95%, Cambodia at  81%, and Myanmar at 51%. Indonesia and the Philippines have not yet achieved a 100% electrification ratio due to the condition of the archipelagic countries. This condition is a challenge compared to other ASEAN countries, which are mainland, therefore, it is easier to distribute electricity, “explained Akbar.

Observing the electrification ratio must be connected to electricity consumption in Indonesia. Akbar said that the majority of electricity consumption in the household sector is used for lighting. As for cooking, they still use liquefied petroleum gas (LPG), with a ratio of total energy consumption in the household sector of up to 49%.

“The existence of these conditions creates the potential to electrify stoves used by the household sector, replacing LPG,” said Akbar.

In addition, based on data from the Ministry of Energy and Mineral Resources, said Akbar, electrification in the transportation sector still tends to be low, around only 1%. According to him, the Indonesian Government’s program to promote electric cars is crucial to increasing the adoption of electric vehicles.

“Full utilization of electrification potential will create opportunities to increase electricity consumption in the transportation and household sectors,” said Akbar.

Furthermore, Akbar explained that electrical energy use in Indonesia and other ASEAN countries is still only around 20%. It can be seen based on energy consumption data per capita for 2018-2021. On the other hand, based on the MEMR 2020-2024 Strategic Plan (RENSTRA), Indonesia’s electricity consumption target per capita is 1,408 kWh. Meanwhile, the average electricity consumption in ASEAN itself is around 3,672 kWh per capita.

Head of the Electricity Sector at the East Java ESDM Office, Waziruddin, stated that based on an electrification ratio of 99.32% in the third quarter of 2022, there are households that have not had electricity connections. This can also be seen from the number of low-income families (RTM) in East Java that do not have electricity, around 126,708. However, his party has budgeted around IDR 12 billion in house installation grants in 2023 and various other assistance to provide access to electricity for these households. In addition, Waziruddin  stated that the East Java Provincial Government continues to push for an energy transition policy to increase energy security.

“For example, using geothermal as a substitute for coal energy in power plants, considering that East Java is rich in geothermal potential. In addition, several industries in East Java have also installed rooftop solar power plants, developed biomass power plants, and utilized biofuels,” said Waziruddin.

Edy Pratiknyo, Sub-Coordinator of Business Commercial Relations Facilitation, Ministry of Energy and Mineral Resources, stated that the Directorate General of Electricity is pushing for an accelerated increase in electricity consumption.

“With the program to increase electricity consumption, the government is pushing through accelerating permits for charging infrastructure for Battery-Based Electric Motorized Vehicles (KBLBB),” Edy concluded.