Workshop the Calculation of Greenhouse Gas (GHG) Emission and Budget Tagging

To achieve the ambitious target of reducing Greenhouse Gas (GHG) emissions in accordance with the Paris Agreement, Indonesia released the Enhanced Nationally Determined Contribution (NDC) document which states the emission reduction target is 31.89% (with its own efforts) and 43.2% (with support internationally) in 2030. In more detail, the National Medium Term Development Plan Document (RPJMN) also supports this target by stating that Indonesia can achieve a 27.3% reduction in GHG emissions by 2024.

As a province that uses and uses large-scale coal, and is able to export electricity to surrounding provinces, South Sumatra is one of the largest GHG contributors nationally. In connection with this, the Institute for Essential Services Reform (IESR) held a capacity building event entitled Workshop on Calculating GHG Emissions and Budget Tagging with the Provincial and Regency/City Regional Planning Agencies (Bappeda) in South Sumatra on September 25 2023.

In the workshop which was attended by around 25 representatives of Provincial and Regency/City Bappeda in South Sumatra, IESR presented two speakers from the Fiscal Policy Agency and the National Research and Innovation Agency (BRIN). Representing the IESR Sustainable Energy Access team, Reananda Permono explained that IESR is committed to holding four workshop events in the context of capacity building for the South Sumatra Bappeda in dealing with the issue of a just energy transition and economic transformation in South Sumatra. In the regional context, this capacity building activity is needed because Bappeda is an important stakeholder in energy transition activities.

In his speech at the opening of the event, Hari Wibawa, Head of the Economic and Development Funding Division of Bappeda for South Sumatra Province, reminded Bappeda colleagues of the importance of insight into GHG emissions and budget tagging. Moreover, South Sumatra’s economy is largely supported by the mining industry, as evidenced by the many districts in South Sumatra that depend on their GRDP from the coal mining sector.

Policy Analyst from the Fiscal Policy Agency, M. Zainul Abidin, who was the first resource person, explained the importance of Budget Tagging in monitoring the impact of climate change in Indonesia. Budget marking activities are directly connected to the APBN, so that they can support the development agenda and national fiscal policy. Zainul also mentioned three functions of the APBN as an economic stimulus instrument, namely as a shock absorber (stabilization function), development agent (allocation function), and solution for people’s welfare (distribution function).

“The results of budget marking are used in the NDC (Nationally Determined Contribution) achievement monitoring system in the Ministry of Environment and Forestry’s National Registry System (SRN), and efforts are made to support the low carbon development monitoring system in the AKSARA Bappenas system. “There are quite a lot of uses for budget tagging, for example as a basis for forming cooperation in climate change action and as a basis for local governments to obtain innovative financing,” explained Zainul.

The second resource person, researcher from BRIN Rohmadi Ridlo, stated the importance of developing climate change mitigation and adaptation strategies to reduce GHG emissions in South Sumatra Province. Information regarding GHGs can then be used in identifying climate change mitigation and adaptation strategies, formulating sustainable environmental policies, and even as a basis for preparing special budgets to reduce GHGs at the provincial level.

“In general, there are five sectors that produce GHG emissions, namely energy, waste, IPPU (Industrial Process and Product Uses), agriculture, and FOLU (Forestry and Other Land Uses). The energy sector is still the largest source of GHG emissions nationally with 453.2 Mton CO2. “For the case of South Sumatra, one example of a strategy to reduce GHG emissions in the energy sector is biomass co-firing technology to produce electricity in coal-fired power plants,” explained Ridlo.

 

Conquering Waste and Environmental Problems: The Role of Business and Sustainable Solutions

Jakarta, September 27, 2023 – There has been a growing focus on environmental problems, with one of the most pressing issues being waste management. Based on data from the Ministry of Environment and Forestry (KLHK), the national waste stock reached 21.1 million tons in 2022. Of the total national waste production, 65.71% (13.9 million tons) can be managed, while the remaining 34.29% (7.2 million tons) needs better attention. Therefore, overcoming this issue requires participation from both businesses and communities.

Roni Pramaditia, Head of Medco Foundation, said waste has become integral to human life. Plastic waste management still needs to be improved in several Indonesian cities. Many plastics are thrown into rivers or oceans, which will then be carried away by currents and pollute aquatic ecosystems. Plastic waste carried by currents also threatens marine animals’ survival, including turtles, which often eat plastic, which they mistake for food. Moreover, waste is often burned, releasing greenhouse gas emissions like CO2 and CH4, contributing to climate change.

“For this reason, we are collaborating with Ecoxyxtem, the Institute for Essential Services Reform (IESR), and Kopi Nako Daur Baur to hold the Standup4Sustainability event. This event aims to gather business people in Jakarta and surrounding areas and open up opportunities for collaboration with sustainable solution providers such as providers of waste transportation services, renewable energy, and green buildings,” explained Roni at the Stand4upSustainability event on Wednesday (27/9/2023).

Rizqi Mahfudz Prasetyo, Sustainable Energy Access Program Staff, IESR, mentioned that another sustainable solution for protecting the environment that can be encouraged is the use of solar energy. It is becoming increasingly vital to tackle the problem of climate change, and harnessing solar power is a critical step in reducing greenhouse gas emissions, lessening reliance on fossil fuels, and preserving the natural environment. According to IESR, solar energy has a technical potential of 20,000 GW.

Stand4upSustainability event on Wednesday (27/9/2023).

“Market studies conducted by IESR in several provinces show that the potential for rooftop solar PV (a combination of early adopters and early followers) is generally above 10%, even reaching 25% for certain target groups. However, the use of solar energy in Indonesia is still minimal. Based on data from the Directorate General of EBTKE, Ministry of Energy and Mineral Resources, the actual installed capacity of solar PV in 2022 is 271.6 MW or far below the plan of 893.3 MW,” explained Rizqi.

Another effort to protect the environment and reduce emissions is recycling. Robert Wanasida, Founder of Kopi Nako, said that this coffee shop, which is popular with young people, is implementing the Daur Baur initiative to apply sustainable design in architecture, furniture, and branding of Kopi Nako. The shop’s unique approach can be seen in the way it arranges used plastic cups on the walls and fence elements, known as PanelDaur, at the Nako Alam Sutera Coffee shop. It utilizes an understanding of used plastic cups arranged to form an eye-catching and Instagrammable design to be immortalized.

“The mixed cycle concept was motivated when we wanted to manage plastic waste to protect the environment. However, reducing plastic waste and achieving zero waste is challenging for Kopi Nako. We have been educating our employees regarding plastic waste management to raise awareness of environmental care. The mixed recycling initiative movement and our collaboration with waste banks to manage plastic waste have further supported our efforts,” said Robert.

Ratna Kartadjoemena, Founder of the Paloma Sjahrir Foundation, shared her journey in building a hotel using used materials, especially making the ceiling with 1.7 tons of plastic. In the construction process, Ratna admitted that her party collaborated with architects who understood the characteristics of Indonesia when using environmentally friendly art.

“Not only is the construction process environmentally friendly, but we also implement sustainable practices in hotel operations. We manage our hotel needs through recycling, which allows us to repurpose materials such as candles and drinking bottles, which can be provided to our guests for free. We also have a waste recycling lab that experiments with new ways to regenerate waste such as plastic and styrofoam washed up from seas and rivers, even oyster shells from restaurants into new products such as baskets, furniture, and certain facilities,” said Ratna.

Implementation Check Methodology: a Much Needed Mechanism

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

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

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

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

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

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

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

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

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

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

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

Policy Reform and Concessional Finance Needed to Achieve JETP Targets

 

Jakarta, September 6, 2023 – The draft Comprehensive Investment and Policy Plan (CIPP) document of the Just Energy Transition Partnership (JETP) is under review by the Indonesian government. This review is seen as an effort to ensure that the achievement of JETP targets is in line with reality. This was conveyed by Rachmat Kaimuddin, Deputy for Infrastructure and Transportation Coordination, Coordinating Ministry for Maritime and Investment Affairs, at the Bloomberg CEO Forum at ASEAN (6/9).

“The JETP Secretariat has submitted the JETP roadmap, which is the result of work from four working groups which are technical, financing, policy, and just transition. Currently, it is still under review to assess the match between the required energy types and technologies and the emissions reduction goals in Indonesia, and to ensure that the JETP roadmap can be implemented in reality,” Rahmat explained.

On the same occasion, Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR), mentioned that the limited availability of data posed one of the obstacles in preparing the CIPP document, particularly concerning captive coal-fired power plants (CFPP) or plants operated by specific companies to supply their own electricity.

“In the last two years, Indonesia has implemented coal downstreaming policies that have led to an increase in the number of industries building mineral processing facilities or smelters. This, in turn, has resulted in an increase in the number of captive coal power plants used to supply energy to these smelters. Meanwhile, when the JETP was agreed upon in 2022, the data used still did not include the captive CFPP,” he said.

Furthermore, Fabby mentioned that to create more opportunities for renewable energy developers, the government needs to evaluate the Domestic Market Obligation (DMO) policy on coal, which artificially lowers coal prices. He believes that this policy reform also needs to be discussed at the legislative level. Additionally, he highlighted that electricity tariffs from coal-fired power plants are relatively lower than those for renewable energy. This means that Indonesia’s utility company, PLN, has limited incentives to promote the utilization of renewable energy. In fact, he added, an equal electricity tariff between fossil fuels and renewable energy would provide utility companies with sufficient capital to invest in renewable energy.

Fabby stated that Indonesia requires substantial investments to expedite the development of renewable energy.

“To attain the JETP target of achieving a 34% renewable energy mix by 2030, Indonesia needs to construct approximately 40 GW of renewable energy capacity. This presents challenges in terms of the supply chain and the procurement process. Therefore, Indonesia truly needs proper financing instruments. Within the JETP framework, concessional financing with low-interest rates is a necessity,” he concluded.

Go Greener: Central Java’s Efforts to Attract Sustainable Investment

Jateng Investment

Magelang, August, 21-22 2023 – Central Java aims to attract green investment of up to IDR 65 trillion by 2023 (based on data from the Ministry of Investment /Investment Coordinating Board, BPKPM) to encourage sustainable economic growth and to achieve the target of net zero emissions (NZE). For that, green investment must prioritize environmental friendliness and commit to educating the local workforce, transferring technology, and carrying out products downstream. Additionally, sustainable aspects must be considered when preparing green investment projects.

In line with efforts to increase the regional sustainable economy, the Provincial Government of Central Java, through the One-Stop Investment and Services Agency (DPMPTSP), collaborated with Bank Indonesia Representatives for Central Java Province to organize the Central Java Investment Business Forum (CJIBF), 2023. The forum was designed to foster collaboration between the government, Bank Indonesia, and business actors to increase investment growth and promote sustainable economic development in Central Java. The CJIBF allowed investors to invest in the region, resulting in an investment interest of IDR 18.5 trillion.

Ganjar Pranowo, Governor of Central Java, said the realization of green investment does not only focus on investment but also needs to build an investment ecosystem both at the community and regional government levels. If the investment ecosystem is established effectively, the government must support it by facilitating licensing and services, providing incentives such as prioritized services, commitment, compliance, and enhancing human resources or a skilled workforce in the Central Java regions.

“The Provincial Government of Central Java has a significant initiative to improve human resources and encourage green investment. One of their plans is to construct vocational or vocational high schools and establish special departments focusing on renewable energy,” said Ganjar Pranowo.

Ganjar emphasized the importance of aligning the needs of workers in the business and industrial sectors with the curriculum and learning in vocational high schools. This would require a concerted effort by the government to ensure that the local workforce is trained according to the specific requirements of companies, enabling them to remain competitive.

On the other hand, the Expert Staff for Macroeconomics at the Ministry of Investment/Investment Coordinating Board (BKPM), Imam Soejoedi, mentioned that Central Java Province is a highly favorable location for investment. The CJIBF event aims to strengthen Central Java’s investment opportunities and economic competitiveness, leading to sustainable economic growth.

Imam believes investors see investment in Central Java (Central Java) as more effective and efficient. Central Java also has a low incremental capital-output ratio (ICOR); this indicates that the lower the ICOR, the more efficient investment will be. The success of investment in Central Java is also supported by investors’ trust in the local government.

“Numerous investors have invested in Central Java, which houses the largest glass factory in Southeast Asia, the Nestle industry, the battery industry in Batang, and the food industry in Kendal. Trust plays a crucial role in investment. Even if the location is exceptional, if investors lack trust in the central and regional governments, they may relocate to other provinces or regions,” said Imam.

Meanwhile, Hendri Saparini, Founder and Senior Economist at CORE Indonesia, said Central Java should prepare to compete in green and sustainable investment on both national and international levels. The shift towards green investment should be matched with education and fostering an investment ecosystem at the community and local government levels to ensure sustainability and global impact.

“Central Java requires a green roadmap, which the district/city legislature should back. Additionally, it is crucial to strongly commit to incentivizing companies and investors to advance green investments in Central Java. This will help to attract investors and make investing in Central Java more accessible,” explained Hendri Saparini.

JETP’s Emission Cap Requires Reduction of Coal Capacity

Jakarta, 2 August 2023 – During the G20 Summit in November 2022, Indonesia received a Just Energy Transition Partnership (JETP) funding commitment from International Partners Group (IPG) countries in the amount of USD 20 billion. JETP is a cooperation mechanism for climate finance, and Indonesia is the second country to receive this funding commitment after South Africa.

Indonesia is required to draw up a Comprehensive Investment Policy Plan (CIPP) and complete it on August 16, 2023. The scope of areas that can be included in JETP funding is the electricity sector including power plants owned by PLN as well as the private sector.

Described by Deon Arinaldo, Energy Transformation Program Manager, Institute for Essential Services Reform (IESR) in the webinar “JETP Energy Transition: What and How Does It Work?” organized by AJI (Independent Journalist Association) Jakarta, that this JETP momentum is an opportunity to accelerate the energy transition and policy reform, particularly in the electricity sector.

“One of the expected outputs is a comprehensive investment plan and policy document. This document should be used as a guide for the energy transition roadmap in Indonesia,” explained Deon.

Deon also added that the JETP agreement included discussions on the development of the renewable energy industry and aspects of sustainability. The sustainability aspect is one of the important components in this partnership as well as an aspect that takes time to design because it is hoped that this sustainability aspect can mitigate the negative impacts that arise on communities affected by the energy transition.

Deon continued, to achieve the electricity sector emission reduction target agreed in JETP, which is a maximum of 290 million tons of CO2 in 2030, Indonesia needs to cut coal power plant capacity by 8.6 GW before 2030.

Ahmad Ashov Birry, Program Director for Trend Asia, stressed the importance of paying attention to the sustainability aspects of the Just Energy Transition Partnership scheme.

“It is important not to treat JETP with a project approach, but with a policy approach so that it has strong legal binding,” added Ashov.

Ashov assessed that although JETP is currently subject to Presidential Regulation 112/2022, it is still not strong enough because Presidential Decree 112/2022 itself has not yet sent a strong signal to stop coal operations.

The Bersihkan Indonesia Coalition formulates guidelines on aspects of justice for JETP including ensuring that the investment plan preparation process is accountable, transparent, participatory, fulfills human rights, is ecologically & economically just, and transformative.

IESR: Indonesia Needs Comprehensive Package Policy for Energy Transition

Jakarta, 27 June 2023 – The urgency to shift energy transition into a cleaner, more sustainable one has become increasingly crucial, as highlighted by the IPCC synthesis reports, which states that global temperature has already increased 1.1 degree Celsius. Energy, as the driver of economic growth, has been a key factor in economic activities since the very beginning of fossil minerals mining. However, transitioning to cleaner energy systems brings consequences of decreased coal demand, posing a serious threat to regions heavily reliant on the coal economy.

Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform during the panel discussion of the ASEAN Sustainable Energy Finance on Tuesday, 27 June 2023, emphasized the situation in several provinces in Indonesia which need to consider alternative economic streams, as their local revenue currently comes from coal mining-related activity.

“We need to pay attention to some provinces such as East Kalimantan, which produces 40% of Indonesian coal, and South Sumatera which produces 15%. We need to build local capacity to generate revenue from sectors other than coal,” Fabby said.

Fabby added that the government needs to prepare a comprehensive package of transition finance. The funding should cover not only the technical costs, such as retiring coal fleet, development of renewable energy, improving the grid, but also preparing the community, particularly those employed in the coal mining industry, to adapt into the new labor market. It includes the reskilling and retraining to align their skill with market demand.

“The national government must provide special assistance for regions heavily reliant on coal economics,” Fabby emphasized.

Eunjoo Park-Minc, Senior Advisor on Financial Institutions Southeast Asia of Financial Futures Centre (FFC), agreed on the significant role of government during the transition, especially in designing a supportive policy framework which enables the private sector to participate.

“The role of the investors during this transition time is to develop innovative financing mechanisms. To make it more catalytic, we need a supportive policy framework to make it work,” she said.

Besides that, Eunjoo pointed out the need for international cooperation, as most of the (transition) projects are taking place in the developing countries while the financing primarily comes from the developed countries. 

The Asian Development Bank (ADB), as one of the multilateral banks financing the energy transition emphasized the importance of justness aspects. This is explained by Veronica Joffre, Senior Gender and Social Development Specialist at ADB. 

“One of the aspects of ETM (Energy Transition Mechanisms) is the justness. It means potential social impact should be assessed and managed, including employment, supply chains, and the environment,” said Veronica.

She added that as achieving net-zero emissions is the path for the future, the transition towards that direction should be consciously designed.

The Important Role of Renewable Energy to Build a Bright Future

Jakarta, June 24, 2023 – Raditya Yudha Wiranegara, Senior Researcher at the Institute for Essential Services Reform (IESR), explained several challenges in retiring PLTU and how renewable energy plays a role in shaping the future. This was discussed in the Energy Talk event held by the Hasanuddin University Society of Renewable Energy (SRE).

Raditya, or mostly referred to as Radit, opened the discussion session by explaining that human activities, especially in the energy sector, are the main contributor to the increase in earth’s temperature. The energy source is still dominated by coal and followed by consumption of fossil fuels. Radit considered this as work to be done for Indonesia, to start making plans to reduce dependence on coal-based power plants.

Furthermore, Radit points out that Presidential Decree 112/2022 regulates the acceleration of renewable energy development, and the third article contains a mandate for the Ministry of Energy and Mineral Resources (MEMR) to start making scenarios for accelerating retirement of coal power plants. There are also restrictions not to build coal fired power plants (CFPP) after this Presidential Decree is passed, except for those that are currently being planned, and those that are included in national strategic projects.

“The existing CFPP must also start reducing their emissions, until all are retired in 2045. However, this plan is still in dynamic discussion; the State Electricity Company (PLN) plans to retire CFPPs in 2030,” Radit explained.

Moreover, Radit mentioned , the benefits of early retirement from CFPPs are 2-4 times the cost that can be saved, based on an IESR study with the University of Maryland. Radit emphasized that these benefits include the benefits of health costs on air quality and reduced electricity subsidies that must be issued considering that our electricity is now subsidized. However, retiring coal-fired power plants includes several challenges, including the need for quite large upfront costs, around USD 4.6 billion by 2030 and USD 27.5 billion by 2050, which require substantial international support to achieve them. Second, USD 1.2 trillion is needed to replace PLTU electricity generation with renewable energy. Third, the legal aspect. Radit assessed that both PLN and independent power producers (IPP) have several scenarios that must be met in retiring their generators. For example, PLN needs to be investigated by an auditing agency if there is a loss to the state due to a reduction in the power plant, and the IPP can file a claim for the loss.

“From the results of the study we conducted, we found that in terms of mitigation costs, canceling the PLTU project is the most affordable option in reducing carbon emissions. Canceling will also avoid the big costs that will occur when you have to retire later, “said Radit.

Radit emphasized that with the Just Energy Transition Partnership (JETP) momentum, Indonesia must be able to catalyze more investments and build an attractive market climate in Indonesia for foreign investors. JETP is a climate change and energy transition funding partnership from the G7 countries plus Norway and Denmark for the development of electric vehicles, technology, and the early retirement of fossil-based power plants in Indonesia. This partnership also promotes an equitable energy transition that takes into account the lives and livelihoods of affected communities at every stage of the energy transition journey, so that no one is left behind. Indonesia has received an allocation of USD 20 billion to support the energy transition in Indonesia through the JETP framework.

Sub-National Energy Transition as The Acceleration of the National Energy Transition to Reduce Carbon Emissions

Jakarta, June 2023 – World Environment Day is celebrated on June 5 every year. This commemoration is carried out to increase public awareness regarding the importance of protecting and caring for the environment. However, current environmental conditions indicate  a worsening situation. This is evident from increasing temperature on Earth, which has the  potential to accelerate climate change. The rise in temperature is primarily caused by the accumulation of greenhouse gases, especially carbon dioxide. Carbon dioxide emissions have been increasing by approximately 1.3% annually over the past five years. Therefore, various efforts are needed to reduce these emissions, and one of the key approaches is to promote energy transition.

How does Energy Transition Contribute to Reduce Carbon Dioxide Emissions?

Energy transition involves shifting from using fossil fuels like coal, oil, and gas, to utilizing renewable energy sources such as wind, solar, or hydropower. By doing so, carbon dioxide emissions, one of the major greenhouse gases, can be significantly reduced. Currently, around 73% of emissions are generated by the energy sector, which heavily relies on fossil energy. Transitioning to renewable energy that does not produce carbon emissions can significantly improve the environment. In fact, adopting renewable energy during the energy transition can potentially reduce carbon dioxide emissions by 75%. Additionally, as part of the energy transition, it is crucial to cancel the new coal-fired power plant (CFPP) project and proactively retire existing coal-fired power plants. Implementing these energy transition measures can only play a vital role in reducing carbon dioxide emissions and should be prioritized.

Why can Sub-National Energy Transition Efforts Accelerate the Achievement of Energy Transition Goals?

Accelerating the reduction of carbon emissions necessitates expediting the energy transition process. One effective approach is to focus on sub-national energy transition efforts. Energy transition initiatives at the sub-national level can contribute to a more active and widespread national energy transition. Research conducted by Cowell in 2016 suggests that sub-national energy transition actions planned and executed by local governments can shape overall national energy transition. Local governments have the influence to increase renewable energy capacity. Each region possesses unique renewable energy sources and varying conditions, requiring tailored management strategies. Sub-national governments can identify and prioritize the potential strengths of their regions, leading to the development of specific policies that address the challenges of renewable energy transition. Furthermore, these policies issued by sub-national governments can attract businesses with a focus on renewable energy, thereby fostering technological advancements and facilitating the implementation of renewable energy projects in the area. Engaging local leaders can also boost community support and cooperation for the energy transition.

Indonesia is one country actively pursuing a sub-national energy transition. Local governments in Indonesia have begun designing the Rancangan Umum Energi Daerah (RUED), a policy framework aimed at accelerating sub-national energy transitions and subsequently contributing to the national energy transition. RUED ensures the availability of renewable energy sources at the sub-national level. As of June 7th, 2023, 30 provinces have stipulated RUED. Several provinces that are actively promoting the energy transition in their regions are Central Java. The governor of Central Java has issued a governor circular letter, as well as various types of initiatives to improve the energy transition. It can be seen that up to the 2nd quarter of 2022, Central Java has installed solar PV reaching 22 MWp which plays a role in the national energy transition. Similarly, the Bali government has also issued circulars to support the use of renewable energy, such as Governor Regulations (Pergub), namely Pergub No.15 of 2019 and Pergub No.48 of 2019. The Bali government has also taken the initiative to achieve carbon neutrality by 2045, a head of national target. This initiative is known as Bali Net Zero Emission 2045.

These sub-national energy transition efforts are expected to accelerate the realization of the national energy transition. By accumulating the progress made at the sub-national level, the implementation of the national energy transition can be expedited and optimized.

Photo by Pete Alexopoulos on Unsplash