Synergy for Sustainable Development and Solar Technical Potential in Gorontalo

Gorontalo, 26 November 2021- The potential for renewable energy is evenly distributed in all provinces in Indonesia, including in Gorontalo Province. This potential can be utilized by provinces throughout Indonesia as playing their role in reducing greenhouse gas (GHG) emissions and creating sustainable economic, social, and environmental benefits in their respective regions.

Gorontalo Province, based on the IESR analysis in the “Beyond 443 GW” has a large technical potential of solar power reaching 11.97 GWp (equal to 17.47 TWh of generated power). The potential for pumped hydro energy storage (PHES) is up to 14.4 GWh. IESR Senior Researcher Handriyanti Diah Puspitarini calculated that assuming a family consists of 4 people, it makes 292,921 households in Gorontalo. If one house requires 1.72 MWh of power, then the total electricity demand in Gorontalo is 503.8 GWh.

“So actually the potential for solar in Gorontalo Province can cover all household electricity needs in Gorontalo,” explained Hardiyanti.

Indeed, to achieve these benefits, Gorontalo provincial government needs to build an ecosystem that allows the development of renewable energy, especially solar energy plants (PLTS) to all regencies As one of the hosts for the 4th Sustainable Regency Festival, Gorontalo Regency, Gorontalo Province has a synergistic effort with the large potential of renewable energy. Gorontalo Regency has been actively promoting sustainable development through the allocation of green budgets and the use of renewable energy that contributes to the reduction of greenhouse gas emissions.

Cokro R Katilie, Head of BAPPEDA ( Development Planning Agency at Sub-National Level) Gorontalo Regency emphasized in his opening speech at the series of Festival Kabupaten Lestari that climate change mitigation efforts need to be carried out more optimally.

“In Gorontalo Regency, there was a flood in early November, (this) became a lesson, although collaboration and environmental efforts (have been carried out), the intensity of the weather (which causes flooding) is higher. Of course, mitigation efforts must be increased,” said Cokro.

Inviting the Institute for Essential Service Reform (IESR) online on the session on Mainstreaming  Technology Innovation in reducing emissions and preserving the environment, dozens of participants from various regions and institutions listened to Marlistya Citraningrum, Manager of Access to Sustainable Energy Program, IESR  talking about rooftop PV mini-grid technology.

Marlistya explained that rooftop PV is a reflection of energy democratization because its potential is spread throughout Indonesia, anyone can use it regardless of strata or profession, installation can be anywhere because it has various types, it can be on the roof, above ground, or floating.

“Furthermore, the installation does not take long and can be done by skilled workers. Equally important, the price of the technology is getting lower,” she explained excitedly.

Marlistya explained that the results of the IESR market survey in Jabodetabek found that 7 out of 10 people said that rooftop solar PV is attractive to them. However, only 8% of the respondents said that rooftop solar PV is relevant to their needs. Their interest in adopting PV mini-grid roofs also varies. Most of it is due to electricity savings and following sustainable lifestyles.

“In Indonesia itself, the development of solar PV has been reassuring, it has shown significant growth. However, there are still problems with getting solar panels,” she said.

Currently, rooftop solar PV service providers are still limited in big cities. She said the future homework is to connect people in whatever place in Indonesia with rooftop PV service providers. IESR is trying to bridge the information gap by building the solarhub.id portal.

“This can be an opportunity by utilizing village funds for renewable energy. BUMDES (Village-Owned Enterprises) can manage the renewable energy business as a provider of solar panels. Certainly, it will be more interesting if the tourist attraction in this place uses renewable and sustainable energy, “she said again.

Showing Commitment, Indonesia is Ready for Early Retirement of Coal Power Plants

Throughout 2021, responding to the global demand for climate action to align with the Paris Agreement, Indonesia has updated several documents such as the NDC which targets carbon neutrality by 2060 or earlier and released the ‘green’ RUPTL which is claimed to provide more space for renewable energy. Recently, Indonesia stated that assessment about the opportunity to retire coal-fired power plants early will be conducted. Although it is not yet ambitious to comply with the Paris Agreement targets, Indonesia’s decision should be appreciated and its implementation carefully looked after.

Indonesian Minister of Energy and Mineral Resources, Arifin Tasrif, at the COP-26 Climate Change Summit, signed the Global Coal to Clean Power Statement declaration. The Minister of Energy and Mineral Resources approved 3 of the 4 points of the declaration, i.e (1) encouraging the development of renewable energy & energy efficiency; (2) Phasing-out coal in the 2040s; and (3) strengthening domestic and international efforts to support a just energy transition.

Arifin explained that Indonesia is currently conducting a simulation to retire PLTU of 9.2 GW before 2030. A total of 3.7 GW of the 9.2 GW of power plants will retire early and be replaced with renewable energy power plants. This progressive plan demands a comprehensive roadmap for the coal transition.

Met separately, Fabby Tumiwa, Executive Director of IESR emphasized that the transition to leaving coal in Indonesia needs to be carefully prepared.

According to him, a comprehensive coal transition roadmap needs to be prepared to ensure that the transition that occurs is a transition that takes into account the needs of all parties involved and affected by the abandonment of coal for energy supply, and ensures that everyone has access to reliable and affordable energy.

In the event “From Coal to Renewables: the Energy Transition in Emerging Markets” organized by Accenture in the COP-26 series in Glasgow, Fabby Tumiwa explained, as one of the largest coal producers in the world, 60% of Indonesia’s coal is destined for export. Another important thing to note is that 85% of Indonesia’s coal production is only concentrated in 4 provinces.

“Coal’s role in Indonesia is not only as income for the state, but also as basic income for coal-producing provinces. When there is a transition, and coal will slowly be abandoned, these areas need to be considered because otherwise they will be in danger of collapsing,” explained Fabby.

As a country that relies heavily on fossil energy and with a fairly complex situation, the government’s openness to decarbonization by 2060 or earlier is seen as a step forward and achievable by Fabby Tumiwa.

“86% of electricity in Indonesia is generated by coal-fired power plants. Making the transition to renewable energy in this situation is certainly not easy. But that doesn’t mean it’s impossible,” said Fabby. 

COP26: A “Soundless” Recital by Jokowi

Many parties are waiting for President Joko Widodo’s speech at COP26. Jokowi is expected to declare more ambitious commitments to reduce emissions and deal with climate change as well as to outline concrete steps towards net-zero emissions. Indonesia’s strategic position as the leader of the G20 countries in 2022 should make Indonesia take one step ahead to lead efforts to reduce emissions for G20 member countries.

Unfortunately, in his speech at the High Level Segment for Heads of State and Government COP26 session, President Jokowi did not announce a higher climate ambition target nor a concrete commitment to support the Paris Agreement target to limit the increase in the average temperature of the earth below 1.5 degrees Celsius and achieve carbon neutral by the middle of the century. The IPCC AR6 report has stated clearly that we have less than a decade left to keep the earth’s temperature rise at 1.5 degrees Celsius. The opportunity to increase Indonesia’s climate ambitions is still open and of course the Government must take it and make the best use of it to save the earth from the damage caused by climate change.

Efforts to reduce emissions and address climate change must be seen as both a responsibility and an opportunity to transform Indonesia’s economic system from a carbon-intensive one to a more sustainable low-carbon economic system. According to the IESR Deep Decarbonization study, the transformation of the energy system will create 3.2 million new jobs in the renewable energy sector. An ambitious commitment by setting targets for reducing ambitions that are larger than the current NDC and building a comprehensive energy transition roadmap will send a good signal for investors to invest in Indonesia. This will encourage Indonesia’s economic strength to become more globally competitive.

Previously at the G20 Summit which took place on October 30-31 2021, the leaders of the G20 countries agreed to achieve net-zero emissions by the mid of this century. However, this commitment has not yet been accompanied by a target for the phase-out of coal-fired power plants. Holding a strategic role in the G20 leadership, Jokowi could actually take the opportunity to encourage G20 countries to stop operating coal-fired power plants and switch to renewable energy. Of course, in this case, Indonesia also needs to implement a policy of abandoning coal so that it can set an example for other G20 countries.

In addition, there is a difference between actions and facts on the ground in Jokowi’s speech at COP 26. He mentioned that he would build the largest PLTS in Southeast Asia and encourage the use of renewable energy to reduce emissions in the energy sector. However, until COP 26 took place, supportive policy support for the PV mini-grid ecosystem, such as the Revised Regulation of Ministerial Regulation 49/2018 concerning the Use of Rooftop Solar Power Generation Systems by Consumers of PT Perusahaan Listrik Negara (Persero) as well as Presidential Regulations concerning new and renewable energy, had not been officially issued.

More ambitious climate action is urgently needed now as the effects of climate change are becoming more frequent as La Nina returns. The Climate Transparency report 2021 states that changes in La Nina and El Nino patterns will have an impact on the onset and duration of the rainy season in Indonesia. This affects the agricultural sector such as rice production. The World Bank’s global risk analysis places Indonesia in the twelfth of 35 countries that face a relatively high risk of death from exposure to floods and extreme heat. Ranked as the fifth country with a population that lives in areas lower than the coastal zone, Indonesia is also vulnerable to sea-level rise.

Indonesia is able to make a significant contribution to tackling climate change and preventing worse impacts from the climate crisis. Utilizing vast forests as carbon sinks, having renewable energy potential reaching 7879.4 GW, and playing a strategic role in the G20 Indonesia should be able to achieve and exceed the current NDC target of reducing emissions by 29% on its own and up to 41% with international support from business as usual in 2030. By doing this, Indonesia will not only save the environment but also transform the economic system, as well as demonstrate leadership innovation to the members of the G20 countries.

The G20 is Progressing yet far from the 1.5 degree Plan

2021 is marked as the year of the rebound of emission especially in the G20 countries as the economic and social activity is restarting. Previously, emission in the G20 recorded a decrease due to government regulation to overcome the Covid-19 outbreak. Although 14 G20 states have proposed net zero targets which covers around 61 percent of GHG emissions in the world, it is still not aligning with the 1.5 degree Celsius pathway. Climate Transparency Report 2021 finds that some countries such as Argentina, China, India, and Indonesia are projected to exceed their 2019 emissions level. As the window of opportunity to comply with the Paris Agreement is getting narrow, the G20 countries need to raise their climate ambition higher and to move together fighting the climate crisis.

The Climate Transparency Report, an annual report reviewing the climate ambition and policy of the G20 countries, stating several key findings for the 2021 report that was launched on October 14, 2021. They are:

  • Raised ambitions are not complying with the Paris Agreement yet

In the year of 2021, 14 G20 countries are updating their climate ambition and proposing a net-zero target. 13 updated NDC were submitted to UNFCCC and 6 of those countries i.e Argentina, Canada, EU (including France, Germany and Italy), South Africa, the UK and The US increased their NDC target, and that is good news. Unfortunately, all of them are not enough yet to comply with the 1.5 degree plan. By following the current ambition the global temperature will still rise up to 2.4 degrees. A more holistic and communal effort is definitely needed to keep the global temperature in the 1.5 degrees level.

“If the G20 were to align its targets and policies with one and a half degree pathways and implement those policies,  the global emissions gap of around 23 gigatons can be reduced significantly,” said  Justine Holmes, Solutions For Our Climate


  • Fossil fuel subsidy is still remaining

During the economic recovery, most of the G20 countries are injecting subsidies for the fossil fuel sector. In fact, the amount of fossil fuel subsidies are way bigger than the green recovery package prepared by the G20 governments. From January 2020 to August 2021 the G20 committed USD 298 billion to subsidise the fossil fuel industry. USD 248 billion of the USD 298 billion has gone without the ‘green pact’ attached. Meaning the fossil fuel industry has no obligation to for instance lowering their emissions, or other deals to consider the environment or climate change situation.


  • Emission is rebounding

As the economic activity is restarting, emission in the G20 country is rebounding again. Total emissions in 2020 were decreased up to 6% and it is projected to rise 4% this year. Countries like Argentina, China, India, and Indonesia are even projected to exceed the 2019 emissions level. This is actually predicted, that the decreased emissions in 2020 are closely related to the social activity restriction during the pandemic outbreak.


  • It is urgent to phase out coal power plant

Coal-fired power plants are known for their intense carbon emissions. As of 2020, China (163 GW), India (21 GW), Indonesia (18 GW), and Turkey (12 GW) still have coal power plants on the pipeline. All G20 members will need to phase out coal between 2030 – 2040 to limit global average temperature to 1.5 degrees Celsius.

Fabby Tumiwa, Executive Director of IESR, during his presentation explained that currently Indonesia is still dominated by coal in its energy mix. In October, the Indonesian government issued a new RUPTL which accommodates more renewables share rather than thermal power plan, plus PLN plan to decommission the supercritical coal power plant starting from 2030.

“Recently we are also discussing the possibility to do an early coal moratorium before 2025 but it’s still the plan, not yet settled and we still provide subsidies on fossil fuel. Phasing out fossil fuel subsidies will help to expedite the energy transitions,” he concluded.

Solar PV Answers Industrial and Commercial Needs to Provide Green Products

Semarang, October 06, 2021 – The Commercial and Industry sectors are potential partners to accelerate the penetration of renewable energy. The increasingly strong market demands for green products encourage the commercial and industrial sectors to switch to environmentally friendly technologies in order to maintain their existence in the global market. Solar PV is a strategic choice for the commercial and business sectors considering its relatively fast installation, as well as the availability of solar energy sources that are evenly distributed throughout Indonesia. In addition, investing in solar PV can reduce production costs.

Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR) explained that currently in line with efforts to reduce greenhouse gas (GHG) emissions, the industrial sector is faced with the obligation of the economic value of carbon. Especially for goods that are exported such as to European countries, America and Japan. The carbon footprint of a product that exceeds the specified maximum will be taxed. In addition, public awareness about sustainability issues is increasing, as stated by a survey by WWF and The Economist which found that searches on search engines with the keyword ‘sustainability’ increased by more than 71% during 2016-2020.

“Shareholders of companies have asked that all these companies commit to use 100% renewable energy. So if we want Central Java to become an industrial center, access to renewable energy must be facilitated,” said Fabby at a webinar organized by IESR with the Central Java Government entitled “Rooftop Solar Energy for the Commercial and Industrial Sector in Central Java” (6/10/2021).

In general, in terms of adoption, the number of rooftop solar PV users in Indonesia is increasing. Based on data from the Directorate General of EBTKE, until last August 2021, there were 4,133 rooftop solar PV customers in Indonesia, with a total installed capacity of 36.74 MWp. Judging from the capacity of rooftop PV by region, Central Java and DIY were ranked third with a rooftop solarcapacity of 5.83 MWp.

Chrisnawan Anditya, Director of Aneka EBT at the Ministry of Energy and Mineral Resources, explained that the government has given priority to the development of rooftop solar power plants considering its huge potential, fast installation, and very competitive prices.

“The medium-term strategy that is being pushed for the development of PV is rooftop solar which is targeted at 3.6 GW by 2025. In addition, we also continue to encourage utility-scale PV,” explained Chrisnawan on the same occasion.

To support infrastructure and services towards the energy transition, PLN must also improve on preparing grid adaptations and adapting to a business model that accommodates large amounts of renewable energy.

“This rooftop PV has an impact on the current PLN grid due to its intermittent nature. So PLN must provide a standby unit to supply electricity when the power generated by the PV rooftop cannot meet the existing electricity needs,” explained M. Irwansyah Putra, General Manager PLN Central Java – DIY.

Irwan also explained that in supporting the carbon tax mechanism, PLN has issued an REC (Renewable Energy Certificate). By purchasing this certificate, PLN will distribute electricity obtained from clean energy to the industry.

Questioning policies to encourage renewable energy in Central Java Province, the Head of the Central Java Province ESDM Office said that his party had prepared various policies. However, according to him, to encourage certain changes, in this case the transition from fossil energy to renewable energy (Solar PV-ed), policy support alone is not enough.

“Change will happen more quickly if it is driven by a market driven mechanism, so it’s not just complying with certain rules. The Central Java ESDM Office has tried to make policy packages that cover this market aspect with input from various parties such as the government, universities, and NGOs,” explained Sujarwanto.

The Central Java Regional Government also provides assistance to the commercial and industrial sectors in Central Java which are transitioning to green industries. “There are several steps taken to implement the green industry, i.e. training, facilitating certification for the green industry as well as awarding the green industry. Several companies in Central Java received this award,” explained M. Arif Sambodo, Head of the Industry and Trade Office of Central Java Province.

Opportunities for the commercial and industrial sectors to adopt solar PV are getting wider with the availability of various Solar PV investment schemes such as installments and leases. Anggita Pradipta, Head of Marketing for SUN Energy, said that there are three schemes offered by SUN Energy for prospective rooftop solar PV customers, namely Solar purchase, Performance Based Rental, and Solar Leasing.

“For the commercial and industrial sectors who want to install solar panels but are constrained by the initial installation cost, we recommend taking a performance based rental scheme. With this scheme, the customer will be bound by a contract for 15-25 years, where all the costs of maintaining the solar PV unit will be borne by SUN Energy, after the contract ends, the assets will become the property of the customer,” explained Anggi.

Check out 6 Differences in Indonesia’s 2016 NDC and 2021 Update Results

Since signing the Paris Agreement in 2015, Indonesia has begun to prepare a Nationally Determined Contribution (NDC) document as an official statement for its emission reduction commitments. Indonesia’s first NDC was submitted to the UNFCCC in 2016. Along the way, many parties considered that the NDC owned by Indonesia had not been able to answer the challenges of the climate crisis and efforts to reduce emissions.

In 2021, with input from various parties, Indonesia will update its NDC document. In terms of emission reduction targets, nothing has changed, but the most noticeable difference is that various adjustments have been made to the 2020-2024 RPJMN and Indonesia’s Vision 2045. In addition, the Ministry of Environment and Forestry (KLHK) has also issued a Long Term Strategy document to complement this latest NDC. Other things added to the latest Indonesian NDC can be seen in the following comparison table.

NoPointNDC 2016NDC 2021
1Alignment with national strategyAlign with the Nawa Cita concept.
Alignment with RPJMN 2020-2024 and Indonesia Vision 2045 through NDC
2Projected GHG emissions at BAU
Energy CM2: 1.271MTon CO2e

FOLU CM2: 64 MTon CO2e

Emission reduction targets

CM2 Energy: 398 MTon CO2e

FOLU CM2: 650 MTon CO2e		Energy CM2: 1,407 Mton CO2e

FOLU CM2: 68 Mton CO2e

Emissions reduction targets:

CM2 Energy: 441 MTon CO2e

FOLU CM2: 692 MTon CO2e
3Long Term Strategy (LTS) Document
Not available
Available, fulfilling the mandate of the Paris Agreement Article 4.19 (include gender equality and decent work issues)
4Explanation of assumptions in business as usual (BAU) projections and targets
Not available
Available
5Information about Indonesia's commitment to various international conventions
Not availableAvailable
6Translating the Katowice Package as a Guide for Implementing the Paris Agreement
Not translated
Translated

In the latest document, the Government of Indonesia describes 3 climate change risk mitigation scenarios, namely CPOS (Current Policy Scenario), TRNS (Transition Scenario), and LCCP (Low Carbon scenario Compatible with Paris Agreement). In addition to emission reduction targets, these three scenarios have a direct impact on per capita income and investment costs that must be paid by the government.

Are Indonesia’s emission reduction targets relevant to achieving the Paris Agreement targets?

Indonesia’s steps to improve its NDC have drawn appreciation and criticism. Appreciation is given for efforts to clarify points that have not been included in the NDC document, such as aspects of gender equality and decent work, adding a Long Term strategy (LTS) document, and including Indonesia’s commitment to the International Convention on adaptation.

On the other hand, criticism comes because the ambition to reduce emissions has not increased from the previous document. The emission reduction target in Indonesia’s NDC does not reflect the sense of urgency to respond to the current climate crisis. In fact, the IPCC AR6 report launched in August 2021 states that the time to prevent the earth’s temperature from rising below 2 degrees Celsius is less than a decade away. As one of the top 10 largest emitting countries in the world, Indonesia should be even more ambitious in reducing its emissions.

In addition, in the energy sector in the electricity sub-sector, coal-fired power plants that produce high emissions will still be chosen as a source of power generation even until 2050. However, the reasons for choosing CCS/CCUS technology implementation, both technically and economically, are not explained in detail. It also does not explain the differences in assumptions used between CPOS, TRNS, and LCCP scenarios. The lack of transparency regarding the assumptions used in this document makes it difficult for academics, policy makers, or the general public to study this LTS – LCCR document

IESR considers that the importance of increasing climate ambition is not only to fulfill international agreement commitments but also to realize national economic resilience and mitigate the risk of large costs incurred to fix climate problems in the future. In response to this, IESR compiled a recommendation for the President of the Republic of Indonesia regarding the updating of Indonesia’s Nationally Determined Contribution (NDC) 2021 which can be downloaded as follows IESR Recommendation to President Joko Widodo on Updating NDC – IESR

Youth Coalition Concerned for Renewable Energy: “Remove Brown Energy Sources from the EBT Bill!”

Jakarta, September 29, 2021 – Indonesia has set its target on achieving a carbon neutral target by 2060 or sooner. One strategy is to use renewable energy. Encouraging the optimization of renewable energy development in Indonesia and providing a clear legal basis. The House of Representatives of the Republic of Indonesia has the initiative to draft the New and Renewable Energy Bill (EBT Bill). However, along the way, the EBT Bill still contains elements of fossil energy which has drawn protests from the Youth Coalition for Renewable Energy.

“Initially, the EBT Bill raised our hopes about the development of renewable energy as a mitigation measure for the climate crisis, but our hopes have faded because the current EBT Bill includes unclean energy sources. Here, Indonesia’s commitment to the energy transition and reducing its emissions is questionable,” explained Satrio Swandiko Prillianto, representative of the Youth Coalition Concerned for Renewable Energy at the webinar ‘Youth Aspirations for a Fair EBT Bill’, which was supported by the Institute for Essential Services Reform (IESR).

Not only that, through Satrio, this Coalition that consisting of students from various universities in Indonesia, also summarized their 3 points of objection to the EBT Bill as follows:

  1. The Youth Coalition Cares for Renewable Energy demands the House of Representatives Commission VII to remove unclean energy sources from the EBT Bill,
  2. The Youth Coalition Cares for Renewable Energy asks the government to regulate incentive regulations for renewable energy,
  3. The Coalition of Youth Concerned for Renewable Energy asks the government to consider scientific suggestions and aspirations of the people from various circles as an effort for economic growth and decarbonization of the energy sector.

Sugeng Suparwoto, Chairman of Commission VII DPR RI on the same occasion stated that the long process of making the New Renewable Energy Law has now reached the synchronization stage in the legislative body of the DPR RI. It is planned that this law will be completed by the end of 2021. He explained that this bill is important to deal with energy problems in Indonesia.

“Our fossil energy reserves are low, besides that it is also polluting because it produces high carbon emissions, so we need to switch to renewable energy and need a strong legal basis for the development of the ecosystem,” explained Sugeng.

Although the EBT Bill is not yet perfect, Ratna Juwita Sari, a member of Commission VII DPR RI believes that this EBT Bill will ensure that the energy system in Indonesia to be strong, independent, sufficient, affordable, fair and sustainable, and clean.

“We are aware that some articles still raise pros and cons, such as the chapter on nuclear, but the impact of this bill socially, economically and environmentally will be large and good,” explained Ratna. 

Measuring the Urgency of EBT Bill

Jakarta, 10 September 2021 – Since January 2021, the Indonesian House of Representatives Commission VII has prepared an academic paper for the New and Renewable Energy (EBT) Bill and is currently in the process of consolidation. This bill is considered important to provide legal certainty for the development of renewable energy in Indonesia. Even so, until now several parties have expressed objections to the substance or questioned the urgency of this law.

The development of renewable energy in Indonesia itself over the last five years has not been encouraging. The average additional installed capacity per year is only around 400 MW. In fact, Indonesia has a commitment to achieve 23% of renewable energy in the primary energy mix by 2025. Currently, Indonesia’s achievement is still in the range of 11-12%. As time is running out, various strategies are needed to accelerate the development of renewable energy in Indonesia. In collaboration with Soegijapranata Catholic University, the Institute for Essential Services Reform (IESR) held a webinar entitled “New and Renewable Energy Bill: for Whom?”. This webinar aims to explore the perspectives of various fields and hopes to formulate recommendations for this bill.

In his opening remarks, Fabby Tumiwa, Executive Director of IESR reminded the importance of the public knowing about the New and Renewable Energy (EBT) Bill and having the space and opportunity to provide their views on this Bill.

“In the midst of Indonesia’s current condition of pursuing net-zero emissions of 2060 or faster, the development of renewable energy is one of the keys to achieving this target. The role of the EBT Bill is important here,” explained Fabby.

Sonny Keraf, the Indonesian Minister of the Environment from 1999 to 2001, revealed that the problem of renewable energy which is slow in progress is not a problem in the regulations, but lies in the government’s seriousness in transitioning from fossil energy to clean energy.

“So if the big question is do we need this New and Renewable Energy Law? The answer could be no. Because we already have enough regulations that regulate energy in detail,” he said.

Irine Handika, Lecturer at the Faculty of Law, Gadjah Mada University, has a similar argument with Sonny. From the legal aspect, according to her, there are several things that are problematic about the New and Renewable Energy (EBT) Bill. One of them is the term ‘new energy’ which will make this law die before it is born. This is because the ‘new energy’ parameter itself is uncertain and unclear.

“We see that currently the main problem is at the implementation level of existing energy regulations, so making new laws may not be the right solution. Even if it is considered that there are things that have not been covered in existing regulations, the solution that can be taken is revisions or amendments to existing regulations or laws,” explained Irine.

On the other hand, Kardaya Warnika, DEA, member of the Indonesian House of Representatives Commission VII, explained that the EBT Bill aims to provide legal certainty for the development of new and renewable energy in the future. In the future, this law is projected to become a guideline for achieving national new and renewable energy targets.

“We see that the energy transition is very big, this law is a way for the state to be present to lead the energy transition process. I agree that the progress of NRE is bad because the government is not very supportive of renewables, even though the state must be present and lead the energy transition process. So it is hoped that this law will provide legal certainty forever for the development of renewable energy,” said Kardaya.

The partiality of the new law will really be seen when the draft law is finalized, but we need to ensure that the substance of the EBT Bill is not counterproductive to Indonesia’s decarbonization ideals to become net-zero emissions by 2060.

Seizing and Keeping the Momentum of Solar Energy Rise

Jakarta, 9 September, 2021-In the past year, there was a dynamic change in the energy sector. The approaching deadline of the Paris Agreement and the latest IPCC AR6 report stated that our time shortened to keep temperature rise. It  has raised discourse about decarbonization and net-zero commitment from all around the globe. Rapid deployment of renewables is one of the keys to decreasing emissions as the energy sector is the biggest emitter. In fact, the cost of clean energy keeps coming down. Studies show that wind and solar are the cheapest for ⅔ of the world’s population which is about 77% of GDP and over 90% of the generations (BloombergNEF, 2020). 

Solar energy will be the backbone of decarbonization due to its flexibility to be installed on various scales, from household size to utility size scale. Thus, it makes possible a massive solar deployment in Indonesia “Indonesia has a huge potential of solar energy, with the declining cost of a solar energy system and its ability to be installed in various power scales, it will enable more parties to take part of this collective action to not only deploying renewable energy but also to fight the climate crisis,” Fabby Tumiwa, the Executive Director of IESR summarized his speech during the report launching of Scaling Up Solar in Indonesia: Reform and Opportunity.

Caroline Chua, a Senior Associate of Bloomberg NEF Southeast Asia, as well as lead author of the report, emphasized that achieving Indonesia’s renewable target of 23% in 2025 needs double effort from the current condition. 

“Indonesia’s 23% renewable energy target can be achieved by installing 18 – 23 GW of solar PV. Solar alone can help Indonesia to meet its 2025 target as it can be deployed rapidly and the technology is already available and getting cheaper day by day,” she said.

The economy of solar is getting more and more competitive, and in the future, it will outcompete coal power plants. The solar tariff in Indonesia has declined by 76% from 25 cents/kWh in 2015 to 5,81 cents/kWh in 2020. Daniel Kurniawan, IESR’s Solar analyst said that there is already interest from the market to bloom in Indonesia.

“The challenge here is really to replicate the solar procurement. I think the market is already sending a strong signal that they are interested in Indonesia and it can be achieved. The question now is how Indonesia can think not only to achieve its renewable energy target but also to decarbonize its energy system,” he said.

Earlier this year, PLN announced that it’s going to be net-zero emission by 2060. In their new draft of RUPTL the plan to retire old coal power plants is included.

“PLN presents a roadmap to be net zero-emission in 2060. In the new RUPTL we also give more space for renewable energy and include the plan to retire coal power plants. According to us, we will retire all coal power plants in 2056 and finally reach net zero-emission in 2060,” Zainal Arifin, Executive Vice President Engineering, and Technology, PT PLN explained.

Chrisnawan Anditya, Director of Various New and Renewable Energy, Ministry of Energy and Mineral Resources, agreed that solar will be the key to achieve Indonesia’s target as well as fighting climate change.

“We need to address the intermittency issue and develop an energy storage system. In our planning, we expected the energy storage system to come from the pump-hydro storage that can be developed in 2030,” he said. 

The commitment is renewed and updated to achieve net zero-emission, yet,  it needs to be manifested through concrete planning. So that all stakeholders in Indonesia can use this momentum to seize renewable energy deployment in Indonesia for a common and greater good in the fight against the climate crisis.