Indonesia’s Energy Transition Overshadowed by Government Uncertainty

Jakarta, December 21, 2021 – Closing 2021, the Institute for Essential Services Reform (IESR) has launched its annual report entitled Indonesia Energy Transition Outlook (IETO) 2022. Since 2017, IETO – previously called Indonesia Clean Energy Outlook (ICEO), has consistently explained the development of the energy transition in Indonesia in various sectors as well as provided projections of Indonesia’s energy transition in 2022. For the second year in a row, IETO has specifically analyzed Indonesia’s energy transition readiness.

At a global level, 2021 was marked by some important events such as the Climate Summit hosted by the US president, Joe Biden, who called for the whole world to take more ambitious steps to tackle the climate crisis. The G20 Summit and COP 26 reiterated that the commitments and actions to mitigate the climate crisis of all countries are still not sufficient to suppress the increase in the global average temperature of 1.5 degrees Celsius. More ambitious and aggressive climate mitigation actions are needed.

Although not yet in line with the Paris Agreement, Indonesia has begun to show a quite progressive political commitment by setting a net-zero target by 2060 or earlier, plans to retire 9.2 GW  coal-fired power plants early, and the issuance of a new RUPTL which gives the share of renewable energy up to 51.6%. According to IESR, this commitment can be seen as a breath of fresh air for the development of renewable energy in Indonesia. However, this still has not been able to accelerate Indonesia’s energy transition, and achieve the Paris Agreement target of achieving carbon neutrality by the middle of this century.

Julius Cristian, the lead author of the IETO 2022 report, saw some uncertainty from the government.

“For example, although the latest RUPTL has accommodated about 50% of renewable energy or around 20 GW when compared to the need for decarbonization which reaches 130 GW, this plan is certainly far from what is needed. In addition, the government is still relying on strategies that we think are not feasible, such as the use of nuclear and CCS which are more expensive than renewable energy,” he explained.

The IETO 2022 assesses that Indonesia is capable of achieving net-zero by 2050. To achieve this, Indonesia must reach peak emissions before 2030, and after that start reducing them. One of the implications of this is that Indonesia is no longer allowed to build CFPPs and must immediately start retiring old CFPPs.

Considering the potential and availability of resources, solar PV will be the backbone of Indonesia’s decarbonization. However, its growth in 2021 was only around 18 MW, even though the demand will reach 108 GW in 2030, or an average increase of 10 GW per year.

Handriyanti Diah Puspitarini added that there has been a slight improvement in terms of policy quality and social (public acceptance) regarding the energy transition, but commitment from the government and the renewable energy investment climate still needs a lot of improvement.

“We need to see how the implementation of various regulations that will come and have been issued will be implemented. The government must also realize that the public has begun to be aware of this issue and support the energy transition, so the government should also support this already high public support,” explained Handriyanti.

Herman Darnel Ibrahim, a member of the National Energy Council (DEN), stressed the importance of renewable energy to grow exponentially to meet electricity demand and meet international agreement targets. Although throughout 2021 there is a momentum for growing awareness to transition Indonesia’s policy direction, it is still uncertain where it will go.

“For example, RUED, ​​although the regions already have RUED, ​​the authority to execute is centralized in PLN and Pertamina, so these regions have RUED but cannot affect the results,” said Herman.

Faela Sufa, Southeast Asia Director of ITDP, sees that the transportation sector can be one of the drivers of the renewable energy ecosystem in Indonesia.

“For example, for the electrification of public transportation, we need to synchronize together and identify what incentives need to be given so that it can be more tangible in energy use and coordination with various sectors related to renewable energy for electrification,” explained Faela.

Yusrizki, Chairman of the Standing Committee of the Indonesian Chamber of Commerce (KADIN) for New and Renewable Energy, said that KADIN has declared it will become a net-zero organization in 2060 and is actively encouraging its members to have a-net zero target.

“In the 2022 G20 summit, we are expected to have 100 Indonesian companies that have pledged a net-zero target and this is a very ambitious target. We start from education, assisting -helping them to make their agenda-, to pledge their commitment,” Yusrizki explained.

Meanwhile, Arief Sugiyanto, Vice President of PLN’s RUPTL Control, explained that his party is currently trying to meet the energy mix target of 23% by 2025.

“The target of 23% NRE in 2025 is indeed a formidable challenge. One of PLN’s strategies is to change diesel power generators in isolated areas gradually with NRE generators available in those locations,” said Arief.

Indonesia Needs to Catch the Opportunity to Finance Transition

Jakarta, 22 Nov 2021 – As the COP-26 wrapped up a few weeks ago, more discussions about “what’s the next follow-up action?” are being conducted to keep reminding both the Government and the public that the pledge or commitment made during the conference should be implemented. 

Acting as the pre-opening of Indo EBTKEConnex 2021, FIRE (Friends of Indonesia’s Renewable Energy) hosted a dialogue to figure out how Indonesia is setting up its strategy to achieve the new target and commitment announced during the COP-26 in Glasgow.

Sripeni Inten Cahyani, the Special Staff of the Ministry of Energy and Mineral Resources explained the Indonesia standpoint during the conference. Earlier this year, Indonesia submitted its updated NDC to the UNFCCC Secretariat and committed to achieving net-zero emissions by 2060 or earlier. This is quite a progressive step since at the beginning of the year there is not even a word about it. 

“Indonesia signed The Global Coal to Clean Power Declaration, and one of its commitments is to retire coal power plants in the 2040s, in our initial plan of coal phase-out around the 2050s. The acceleration means we need more financial support to retire the currently operating power plant and replace it with renewables,” Inten Said.

Indonesia has been consistently urging the developed countries to distribute funds to the fewer capital countries to address climate change and energy transition. 

David Lutman of the British Embassy emphasized that the urge to take action can be translated into deploying renewable energy on a large scale and that means the phase-out of coal. “The faster Indonesia delivers the transition, there will be bigger economic growth to reap,” he said. 

The importance of materialised commitment is needed to showcase promising progress in the next 2-3 years as explained by Fabby Tumiwa, the Executive Director of IESR. “Transition is not only about Indonesia, but the international community is observing so we need to display our progress to keep our accountability, and later to attract more international assistance,” Fabby explained.

Fabby later said that  three key things that can be done by the Indonesian government to accelerate the energy transition in Indonesia i.e conducting coal early retirement, increasing RE project pipeline, and assisting PLN in terms of auction and procurement of renewable energy.

Sufficient financing is needed in transforming the energy system. During COP-26, the Government of Indonesia signed the Energy Transition Mechanism (ETM) Memorandum of Understanding (MoU) with Asia Development Bank to finance the early retirement of coal power plants. Another financing scenario is by reforming the subsidy scheme in Indonesia and diverting it for the deployment of renewable energy.

Indonesia’s Energy Transition Financing Needs to be Calculated Carefully

Jakarta, 24 November 2021 – The transition to clean energy is a necessity. The development of clean energy technology makes the price of electricity from clean energy become more and more competitive with fossil energy which is still widely found in energy systems. Citing the 2021 Climate Transparency report, Indonesia’s energy system until 2021 is still dominated by fossil energy which accounts for more than 80% of electricity production. This high level of dependence on fossil energy makes the energy transition in Indonesia need to be carried out carefully on planning and execution level.

In order for the energy transition process to run without a significant economic contraction, the government needs to prepare a sustainable financing strategy. This was discussed as the topic in the following discussion “The Role and Implementation of Sustainable Finance Towards Energy Transition and Net Zero Emission in Indonesia” organized by the Clean, Affordable, and Secure Energy Project for Southeast Asia.

Sunandar, Assistant Deputy for Utilities & Manufacturing Industry, Coordinating Ministry for the Economy, believes that careful calculations are needed so that it can mitigate the economic risks of the energy transition. In particular, it requires large funds to stop coal power plants and the development of new and renewable energy.

“With the current condition where our energy is still dominated bycoal and only 11.2% of NRE, it will require huge funds because we have to retire coal power plants and at the same time build New and Renewable Energy plants. Therefore, we need to plan the energy transition mechanism. And more importantly, ensuring the availability of affordable financing for all parties who want to contribute to the energy transition,” explained Sunandar.

This condition makes Indonesia have to look at what financing schemes are suitable to be applied for Indonesia’s energy transition. The IESR’s Deep Decarbonization study shows that the investment requirement for the transition reaches IDR 287-360 trillion/year. Dewa Putu Ekayana, a young expert on PKPPIM from the Ministry of Finance, said that the ability of the state budget (APBN) to finance the energy transition is only around 32.6%.

“To fill in this funding shortfall, the government has created a blended finance scheme by issuing green bonds, green sukuk and inviting investor involvement in climate change related projects or renewable energy,” Dewa explained.

Another type of financing that is also being explored by the government is Government and Business Entity Cooperation (Kerjasama Pemerintah dan Badan Usaha – KPBU) to develop clean energy infrastructure in Indonesia.

“This scheme will reduce the burden of the APBN/D in financing the transition of part or all of the projects that will be carried out because the resources belong to the Business Entity, with the distribution of risk between the parties (Business Entities and Government),” explained Suryo Wijiono Pambudi, Development Funding Planner, Bappenas

Suryo added that the capacity of local governments needs to be improved so that they can prepare for the transition at the grassroots level, as well as figure out what green economic opportunities can be developed in the area.

“In addition, a special set of policies related to NRE development is needed which includes special institutions, division of service areas and a national NRE development roadmap,” said Suryo.

Implementation and Lesson Learned Sustainable Financing

Renewable energy technology that continues to develop is not only making the price of the energy more competitive, it also results in lower emission levels. Therefore, renewable energy is highly considered to replace fossil energy which has high emission levels and its reserves are running low. A number of financing schemes are offered with various risks and consequences.

Evy Susanty, Chief Finance Officer, PT Surya Utama Nuansa explained that solar energy can be a priority choice for using renewable energy on various scales.

“To facilitate consumers in installing solar rooftop, PT SUN Energy provides 3 financing schemes, namely solar purchase, performance based rental, and solar lease. Of these three schemes, performance-based rental is the most favored by consumers because this scheme allows potential customers from the business and industrial sectors to install rooftop solar power plants without initial capital, “said Evy.

Apart from solar, the Government of Indonesia is also developing other renewable energy potentials such as biogas. From the ongoing biogas project, there are several lessons learned, one of the most important is the suitability of the PPA (Power Purchase Agreement) with other project documents such as land use agreements, statements on the availability of feedstock supplies, operational and maintenance contracts, and EPC (Engineering, Procurement, and Construction) contracts.

“In this biogas project several things need policy certainty such as land suitability, land use permits, income according to the PPA agreement, assurance of the availability of supply of palm oil/POME (Palm Oil Mill Effluent) effluent,” Kirana Sastrawijaya, Senior Partner in Project, Energy & Finance, UMBRA Partnership explained several things that need to be considered from the legal aspects of biogas projects.

PT Sarana Multi Infrastruktur (SMI), one of the Ministry of Finance’s special mission vehicles (SMV) for infrastructure financing, noted a number of obstacles in financing green projects in Indonesia. The limited number of green projects and no attractive incentives from the government for green projects makes investors rethink investing in Indonesia.

“In the implementation of green projects, it is common to need additional time and money to conduct studies related to sustainability, and often there are few professionals to work on them, so inevitably investors have to cooperate with other parties,” explained Pradana Murti, Head of Sustainable Financing at PT SMI.

In the energy transition process, it is necessary to have a common perception and capacity building from related parties, both from the energy and non-energy sectors. “Sustainable finance can be a solution to several bottlenecks that exist in the energy transition process,” said Deni Gumilang, Deputy Program Manager of CASE Indonesia. 

Collaboration of all parties is needed to ensure the implementation of the Glasgow Climate Pact in Indonesia

Jakarta, November 18, 2021 – The 26th World Leaders Summit on Climate Change, also known as COP-26, concluded on November 13th. The summit produced the Glasgow Climate Pact, which, in general, provides a foundation for countries to immediately implement the Paris Agreement. This is the first COP decision that explicitly states that the use of fossil energy, particularly coal, must be reduced.

On the other hand, this pact recognizes that the collective commitment of countries is insufficient to prevent global warming from exceeding 1.5 degrees Celsius above pre-industrial levels. This complicates the task of ensuring the world comes out of the climate crisis.  Komunitas Peduli Krisis Iklim held a press conference to provide an overview of what homework needs to be done and to ensure that accountability for the Glasgow Climate Pact implementation can be carried out efficiently.

According to Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR), the COP26 commitments must be accompanied by concrete actions.

“So indeed what all countries have said, including Indonesia itself, is a commitment. Commitments and promises will not reduce greenhouse gas emissions; actions will reduce greenhouse gas emissions. So, following the COP, we’ll be watching to see how the actions are carried out.”

One urgent task for Indonesia is to transition from dirty energy to green energy. Coal remains the primary source of electrical energy. According to the Ministry of Energy, coal still accounts for 80% of all electrical energy. Indonesia is currently planning the early closure of some coal power plants.

Dewi Rizki, the Partnership’s Program Director for Strategic Sustainable Governance, agrees with Fabby. Dewi also stated that the government’s acceleration of climate action must be done transparently, in collaboration with the private sector and civil society.

“The government must also make opportunities for collaboration with non-party stakeholders available so that the planned (commitment) can be carried out.  The key is cross-sector collaboration,” Dewi explained.

She believes that collaboration and cooperation from all parties are critical because each party plays an equal role in meeting the agreed-upon climate change targets.

Furthermore, mentioning Indonesia’s role in the international arena related to climate action, Nadia Hadad, Executive Director of the Sustainable Madani Foundation, encouraged Indonesia to show its leadership in decarbonization efforts on all fronts.

“This is the time for us (Indonesia) to demonstrate, as a global leader, that Indonesia can be a country that leads in efforts to reduce emissions in all sectors. Policies must be consistent, and then we must be able to take concrete steps to achieve the climate ambitions that we have agreed on,” Nadia said. Nadia also emphasized the importance of strengthening the capacity of local governments and other non-party stakeholders to support comprehensive climate action.

Laetania Belai Djandam, a young environmental activist from the Dayak community, stated that Indonesia should be able to demonstrate a significant increase in ambition and climate action at the upcoming COP27.

“The public must continue to put pressure on the government and hold it accountable for every decision and action it takes,” Laetania said.

Komunitas Peduli Krisis Iklim is a civil society organization dedicated to overcoming the threat of climate change. This community seeks to persuade the government to develop policies that promote environmental sustainability and community access to environmental rights.

Green Jobs: Promising yet Untapped Opportunity

Jakarta, November 6, 2021 – Green jobs have become an issue that is starting to be discussed a lot. Young people try to understand green jobs to figure out what fields are included in green jobs, what are the prospects for future opportunities, as well as what should be prepared to work in this sector. Project Clean, Affordable, and Secure Energy (CASE) for Southeast Asia in collaboration with Indonesia Mengglobal hosted a webinar entitled “Green Jobs in Indonesia: Opportunities, Challenges, and Future Outlook” with the aim of providing an overview of green jobs from practitioners in various fields. 

Previously, a mini survey to gain the perception of young people about green jobs was conducted. The survey, which attracted around 200 respondents, revealed one interesting finding, namely that more than 90% of respondents stated that they would prefer companies that have concern on environmental issues.

Desi Ayu Pirmasari, a researcher at the University of Leeds, England, stated that green jobs have a wide sector. “Green jobs have a very broad spectrum, not limited to specific sectors such as energy. For example, when civil servants make greener city plans, procurement staff who consider the carbon footprint in the procurement of goods. Lawyers can also become green jobs if they help others to breathe fresh air and fight for climate change.”

Desi’s opinion is agreed by Julius Christian, a researcher on clean fuels at IESR, with the trend of using renewable energy that is getting wider. According to him, currently there are so many sectors that need workers who understand sustainability, SDGs, and the environment concepts in general.

“In the energy sector only, in the next 5-10 years renewable energy will be more competitive with fossil energy, so the energy transition is inevitable. From the IESR study on Deep Decarbonization itself, there will be around 3.2 million new jobs. Of course, this is a big opportunity and must be prepared from now, “explained Julius.

Preparation of human resources and financial resources is very important, because the development of technology moves so fast requires qualified human resources and adequate financial support.

“So if in the future we want to take advantage of this (green jobs) opportunity, for example making a solar panel manufacturing plant in Indonesia, we must act quickly. We have to consider the full lifecycle of everything, from the carbon footprint of the manufacturing process to use, and the results are not instant. We can only see (the results) in the next 10 years for instance,” said Noor Titan Putri, post-doctoral researcher, Helmholtz-Zentrum Berlin, Germany.

Jonathan Davy, founder and CEO of Ecoxyztem Venture Builder, said that many entrepreneurs are starting to invest in the green jobs sector. The challenge of developing an environmentally friendly business in Indonesia lies in the adoption of environmentally friendly technologies.

“Technology adoption must meet three categories, i.e desirability (whether the market wants to use it), viability (whether technology is needed), and feasibility (whether the business is possible to run). Currently, we are still heavily regulated so that some business processes are still locked,” explained Jonathan.

Jonathan also highlighted the development of human resources, which he said needed to shift the mindset from how many jobs could absorb workers to how many people could create jobs.

Climate Transparency Report 2021: Real Climate Change Impacts, Indonesia Needs to Increase its Climate Action

Jakarta, 28 October 2021 – A few days before COP 26 in Glasgow, the Institute for Essential Services Reform (IESR) launched the Climate Transparency Report, Country Profile of Indonesia 2021. In particular, this annual report on climate action by the G20 countries, highlights Indonesia’s climate action. which includes adaptation, mitigation and financial mobilization to address climate change.

IESR Executive Director, Fabby Tumiwa, in his speech said that the launch of the Climate Transparency report is very relevant to COP26 because this report measures whether Indonesia’s climate action achievements are in line with the Paris Agreement targets or not.

“We only have less than a decade left to ensure a global temperature rise below 1.5 degrees Celsius. Indonesia is also highlighted because we are a member of the G20, also because Indonesia is ranked in the top 10 largest emitting countries in the world, “explained Fabby.

For this reason, according to Emil Salim, Professor of the Faculty of Economics at UI who is also an environmentalist, policy makers in Indonesia need to establish political policies that are able to reduce carbon emissions and achieve carbon neutrality by 2050 for the survival of future generations.

“The fate of the younger generation in 2050 depends on the political decisions we make now. Don’t just think about the current economic benefits, because it’s the younger generation who will bear the consequences of the choices they don’t make. Think about what will happen to the Indonesian people if the impact of climate change gets worse,” said Emil Salim.

Presenting the report on Indonesia’s climate action, Lisa Wijayani, Green Economy Program Manager, IESR underlined that Indonesia’s climate action is categorized as “highly insufficient” in reducing greenhouse gas emissions. The use of fossil energy reaches 82% in 2020 making the energy sector the largest contributor to greenhouse gas (GHG) emissions in Indonesia (45.7% in addition to emissions from forests and land use).

Based on the findings of Climate Transparency, Lisa explained that 2020 should be the peak of coal use and from 2030-2040 its use should be gradually reduced until it is no longer used. 

“In addition, to reduce emissions from the transportation sector, Indonesia must increase the use of renewable energy by 40-60% in 2040 or 70-90% in 2050,” explained Lisa regarding the second largest emitting sub-sector;  transportation.

The Climate Transparency report also encourages ecosystems that support the development of renewable energy, including by halting subsidies on fossil energy.

“Removal of subsidies will help renewable energy compete with fossil energy,” added Lisa.

In terms of the impact of climate change on health, Budi Haryanto, Epidemiologist at the University of Indonesia, explained the high mortality rate due to the increase in the earth’s temperature.

“It is estimated that in 2030-2050, climate change will cause an additional million deaths per year due to malnutrition, malaria, and stress due to heat waves,” he explained.

Furthermore, Budi encourages the government, especially the Ministry of Health to have health data related to climate change adaptation.

In frequency, climate-related disasters are increasing. This was conveyed by Raditya Jati, Deputy of System and Strategy, National Disaster Management Agency. He added that Indonesia as an archipelagic country has a fairly high risk of natural disasters.

“7 out of 10 disasters that occur are hydrometeorological disasters and the frequency this year is higher than 2020,” said Raditya.

In order to significantly reduce GHG emissions, transformation also needs to be carried out in the economic sector, by shifting to a green economy. Eka Chandra Buana, Director of Macroeconomic Planning and Statistical Analysis, Bappenas said that the green economy is a game changer for the Indonesian economy after Covid-19. According to him, low-carbon development by utilizing renewable energy will be the backbone to achieve Indonesia’s green economy targets and net-zero emissions by 2060.

“Based on our calculation, to achieve net-zero in 2060, Indonesia must increase the use of new and renewable energy to 70% in 2050, and 87% in 2060. This calculation is still in process,” said Eka Chandra. 

The success of low-carbon development certainly requires the participation of all parties, especially the city government. Bernardia Tjandradewi, Secretary General of United Cities and Local Governments Asia Pacific (UCLG ASPAC) said that the responsibility of city governments is vital, especially statistically, 60-80% of greenhouse gas emissions in the world are generated in urban areas.

 

“UCLG ASPAC encourages the role of regional heads (mayors) in dealing with climate change by providing training to city governments on climate action planning, access to climate-related finance, and the adoption and development of monitoring tools,” explained Bernardia.

 

Whatever the solution to reducing GHG emissions, including transitioning energy to renewable energy, it must be done fairly. Desi Ayu Pirnasari, Researcher at the University of Leeds, emphasized that an equitable transition will shape climate resilience and social inclusion in society.

 

“The strategy should prioritize community participation to increase ownership on our agenda, to help us achieve our targets. Climate justice is not only about mitigation or action, but also to improve the living standards of vulnerable people,” she stressed.

Mapping the Potential of Renewable Energy in Indonesia for a More Precise Energy Transition Planning

Jakarta, October 25, 2021 – In order to encourage the acceleration of renewable energy development, the Institute for Essential Services Reform (IESR) launched a study entitled “Beyond 443 GW: Indonesia’s Infinite Renewables Energy Potentials”. This study contains data on mapping the technical potential of renewable energy in Indonesia using a Geographical Information System (GIS).

Fabby Tumiwa, Executive Director of IESR, in his opening speech hoped that this study could be a constructive input for the government and policy makers in planning and allocating their resources to utilize the potential of renewable energy as much as possible, both in terms of policy regulations and support from the State Budget.

“We hope that this potential mapping will also help local governments who are mandated to take advantage of the potential of renewable energy resources. They are also expected to encourage the use of renewable energy so that efforts to achieve decarbonization can be carried out together,” said Fabby.

This study states a total up to 7,879.4 GW (scenario 1) or 6,811.3 GW (scenario 2) renewable energy potential in Indonesia. It consists of solar (7,714.6 GW scenario 1 and 6,749.3 GW scenario 2), micro hydro ( 28.1 GW scenario 1 and 6.3 GW scenario 2), wind (19.8 GW – 106 GW), and biomass (30.73 GW).

Handriyanti Diah Puspitarini, the author of the ‘Beyond 443 GW’ study, in her presentation explained that the potential data was higher than the one stated in the National Energy General Plan (RUEN) document of 443 GW.

“The potential for renewable energy in Indonesia is very abundant, even more than what is needed to achieve deep decarbonization (or the 2050 zero emission target),” explained Handriyanti.

Through this ‘Beyond 443 GW’ study, IESR recommends the government to (1) update and review data on the technical potential of renewable energy on a regular basis as technology develops; (2) complete the necessary technical potential map with a brief analysis of the intermittent, variability, and network readiness; (3) consider a decentralized system and inter-island connections to ensure access and availability of electricity from renewable energy; (4) provide support for renewable energy technology innovations in order to open up greater utilization opportunities. 

Present as a responder, Hariyanto, Head of the Center for Research and Technology Development (P3TEK) of the Ministry of Energy and Mineral Resources, stated that the results of this study could enrich the data on renewable energy potential because the Ministry of Energy and Mineral Resources is currently updating the technical potential data for renewable energy in Indonesia including solar, wind and solar, hydro, and bioenergy.

“From the results presented, currently there are the same numbers and there are different ones because I see there are different assumptions and scenarios. For example, the solar potential, which was originally 207.8 GW when updated, has a potential of 189 – 3,294.4 GW with various assumptions. We will still discuss with all stakeholders whether this figure can be put into practice,” explained Hariyanto.

Djoko Siswanto, Secretary General of the National Energy Council, welcomed this study and stated that the results of this study and the data currently being updated by the Ministry of Energy and Mineral Resources could be the basis for national and local governments in developing renewable energy. According to him, the national government can use the results of the latest renewable energy technical potential mapping as a consideration in the preparation of the National Grand Strategy Energy (GSEN), which is currently being carried out by the DEN.

Meanwhile, for local governments, the results of this mapping can be used as a basis for preparing the General Regional Energy Plan (RUED).

“DEN is currently facilitating the regions to draw up Perda RUED. The results of this mapping will be very useful in drafting Perda RUED which will later become the basis for Regional Governments in developing renewables in their respective regions,” Djoko added.

Still on the same occasion, Chairman of the Indonesian Renewable Energy Society (METI), Surya Darma stressed the importance of always updating data on potential renewable energy on a regular basis.

“The rapid development of technology and the different assumptions used can make the numbers fluctuate, but that’s okay. Our task is to find alternatives so that these potentials can be realized and really utilized,” said Surya Darma.

IESR: Beware of Emissions in the Energy Sector, Special Strategies Are Needed to Reduce Emissions

Jakarta, 21 October 2021 – In the 26th Conference of Parties to be held in Glasgow on 31 October – 10 November 2021, the Government of Indonesia carries four main agendas, namely NDC Implementation, Fulfillment/Completion of the Paris Rule Book, Long Term Strategy 2050, and Net-Zero Emission goal.

On this occasion, Indonesia will highlight the reduced rate of deforestation in the last 5 years and efforts to restore peatlands. In addition, efforts to reduce emissions in the energy sector will also be discussed, such as providing a larger portion of renewable energy in the Electricity Supply Business Plan (RUPTL).

Hari Prabowo, Director of Development, Economy and Environment, Ministry of Foreign Affairs, in the webinar entitled “The Road to COP26 A Climate Superpower Indonesia; Collaborative Efforts to Tackle Climate Crisis” organized by Katadata and Landscape Indonesia, explained that Indonesia will bring a positive and openness to take part in efforts to control climate change.

“Basically, Indonesia is ready to be part of the solution and will be leading by example. We have good achievements in the forestry sector and continue to strive to reduce emissions in various fields,” he explained.

Hari Prabowo emphasized that in overcoming the climate crisis it is time for us to avoid naming and shaming, i.e feeling that our country is better at dealing with climate change than other countries.

“We must show the initiative to play a role in tackling climate change without blaming which party should be more responsible. This climate change requires the collaboration of all parties to ensure that our big goals are achieved,” he concluded.

On the other hand, on the same occasion, the Executive Director of the Institute for Essential Services Reform (IESR), Fabby Tumiwa stated that Indonesia should be more ambitious in setting targets for climate control and emission reduction.

“If we look at the latest NDC document that was submitted to the UNFCCC, Indonesia’s main target for the energy sector is still not ambitious. To suppress the increase in the earth’s temperature to only 1.5 degrees, in 2030 IESR calculates that 70% of the power generation mix must be from renewable energy, if we look at the NDC or other plans such as the RUPTL, it seems that this target has not been achieved, “said Fabby. 

Fabby agreed that the forestry and land use change (AFOLU) sector as the largest emitter (60%) in Indonesia is a priority sector to reduce emissions. However, other sectors such as energy are predicted to produce greater emissions than the AFOLU after 2024-2025, and by 2030 will become the dominant emission source in Indonesia, thus it requires special attention and strategies for reducing emissions in the energy sector.

Fabby also mentioned that the financial need for climate management is huge. In the energy sector alone, it takes USD 30-40 billion per year until 2030. The next period, 2030-2050 investment needs will increase to USD 50-60 billion per year. Indonesia must pursue the commitment of developed countries to provide financial assistance for the climate crisis to developing countries.

Dharsono Hartono, President Director of Rimba Makmur Utama, added that Indonesia has a strategic role in climate crisis control diplomacy. According to him, as a country that has a large tropical rain forest and the largest peatland area, Indonesia’s responsibility in maintaining the increase in the earth’s temperature is very crucial.

“Without Indonesia contributing to global efforts to tackle climate change, the target of the Paris Agreement will not be achieved,” said Dharsono. 

Climate Change: An all aspects of life crisis requires all parties participation

Jakarta, 19 October 2021 – Two weeks before the Conference of the Parties (COP) 26 in Glasgow, climate issues are widely discussed in Indonesia, one of which is to raise public voices and provide input to the Indonesian government, which is planned to be attended by President Joko Widodo to increase Indonesia’s climate ambitions.

Indonesia has renewed its climate commitments through the Nationally Determined Contributions (NDC) document which is complemented by the LTS-LCCR (Long Term Strategy – Low Carbon Climate Resilience) document. In terms of numbers, Indonesia did not raise its ambition any further, namely to stay at 29% with its own efforts and 41% with international assistance. Indonesia is also committed to becoming net-zero emissions by 2060 or sooner. Unfortunately, this effort is not enough to bring Indonesia to keep the earth’s average temperature increase of no more than 1.5 degrees Celsius.

In a webinar entitled “Towards COP26: Climate change and the role of the public in preserving the earth”, Fabby Tumiwa, Executive Director of the Institute of Essential Services Reform (IESR) explained that since the 1880s Indonesia has always been included in the top 10 largest emitting countries (Carbon Brief).

“We should see this responsibility to reduce emissions not as a burden but also as an opportunity to carry out a low-carbon economic transformation. The results of the IESR study show that decarbonization in 2050 will actually bring greater economic benefits, because in addition to creating new industrial opportunities and greater employment, Indonesia’s energy prices will be more affordable as well as social and economic benefits that can be felt such as cleaner air and reduce the threat of hydrometeorological disasters due to climate change,” explained Fabby.

Muhamad Ali Yusuf, Chairman of the Nahdlatul Ulama (NU) Disaster Management and Climate Change Institute, explained that in terms of religious-based community organizations communicating the issue of climate change is challenging because the public in general will care about the problems that are in front of their eyes, so we need down to earths and contextual way to talk about climate change in the community.

“On the other hand, our religious discourse is still far from ecological issues such as climate change. Even if it already exists, it has not become a priority issue. So actually literacy on climate change is also necessary for religious leaders,” he explained.

Executive Secretary for Witness and Integrity of Creation, Communion of Indonesian Churches (PGI), Pastor Jimmy Sormin added that religious leaders and figures have a strategic role to influence the views and behavior of the people and have a significant impact on influencing people’s mindsets and perspectives.

“So you must be creative to convey climate change,” explained Pastor Jimmy.

Information on climate change must be disseminated to the wider community without exception, because when the impacts of climate change such as hydrometeorological disasters appear, all residents will be affected.

Mike Verawati, Secretary General, Indonesian Women’s Coalition, explained that women are the ones most affected by climate change because our policies and systems are not inclusive. Citizens’ needs are seen as neutral needs.

“Climate, infrastructure, and nature issues are usually considered as big narratives or masculine issues, so in the end this issue is considered not a women’s issue even though they know the details and are actively advocating, even though sometimes they can’t explain it scientifically,” explained Mike.

Not only women but young people also need to be involved in policy-making efforts to tackle climate change. As the generation that will live in the future, it is these young people who will bear the impact of the climate crisis that is not taken seriously in the future.

“The Indonesian government already has a commitment to reduce emissions, become net-zero by 2060, and overcome the climate crisis. However, this commitment is not enough to overcome this climate crisis, several policy products issued by the government such as the Minerba Law, Food Estate, and the Omnibus Law are counter-productive to efforts to tackle the climate crisis,” explained Melissa Kowara, Extinction Rebellion Indonesia’s Activist.

Melissa also highlighted the lack of literacy about climate change for the wider community. This makes people seem silent or passive because they do not understand the context.