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.

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.

Energy Crisis Or Fossil Energy Crisis?

Jakarta, October 11, 2021 – In recent months, many media have reported on the energy crisis in Europe. In the UK, for example, many electric and gas utility companies went bankrupt and were forced to close. People are also seen queuing at gas stations to buy fuel. This phenomenon shows us that even countries with strong economies are still quite vulnerable to energy security issues.

CASE for Southeast Asia Project held a discussion entitled “Energy Crisis in UK and Europe: Lessons Learned for Indonesia’s Energy Transition” which invited speakers from the UK and Europe (11/10/2021). In this discussion, the public in Indonesia is involved in the discussion to find out various important facts and findings related to the issue of the energy crisis that is currently happening in the UK and Europe.

In the UK the, industrial and household sectors are quite dependent on natural gas. With the winter season is approaching, the demand for gas is increasing as the need to warm homes also increases. This condition, when a country relies heavily on energy sources that are vulnerable to global markets, does raise a question: is this really an energy crisis, or is it a fossil energy crisis?

William Derbyshire, Director of Economic Consulting Associates (ECA), UK, on this occasion gave an explanation regarding the fact that the primary energy mix in the UK relies on natural gas as much as 42%. Furthermore, William also showed data that illustrates that since 2017, the price of natural gas has gradually increased until 2021, which has resulted in an increase in the selling price of electricity.

“If high fossil fuel prices are the problem, then the answer is reducing dependence on coal and gas, not adding more fossil fuels,” William said.

Based on this conclusion, renewable energy is a good solution to reduce dependence on fossil energy. But not without challenges, the UK, which has 16% of wind power plants in its power generation mix, has several important points to note. For example, Gareth Davies, Managing Director of Aquatera explained that wind farms in the UK have a fairly high variability scale.

Responding to this challenge, Gareth conveyed the need to conduct spatial analysis and planning related to areas that have sufficient wind gust potential, also taking into account the historical climate data.

“By distributing wind power production over a wider geographic area, it will help improve energy security and balance the UK’s energy supply through renewable energy,” said Gareth.

In line with William’s statement regarding the importance of making an immediate energy transition, Dimitri Pescia, Program Manager Southeast Asia of Agora Energiewende explained the fact, for example, in Germany, the investment cost to build renewable energy power plants is much cheaper than to build fossil power plants. In this context, Dimitri explained that investment in renewable energy can be considered as a hedging strategy to minimize the risk of using fossil energy in the energy transition period over the next few years.

From this discussion, the public is being helped to understand the real situation and the lessons that can be drawn for the energy transition process in Indonesia. Fabby Tumiwa, Executive Director of IESR said that Indonesia needs to quickly adopt the use of renewable energy to minimize the risk of an energy crisis due to dependency on fossil energy. Fabby added that the development of these abundant potentials of renewable energy in Indonesia needs to be accompanied by energy efficiency, development of energy storage technology, as well as inter-island interconnectivity.

“It should be remembered that the current energy crisis is a fossil energy crisis. The volatility of fossil energy prices is very high. The increase of fossil energy prices will have an effect on other aspects,” said Fabby, emphasizing the real cause of the energy crisis in the UK and Europe.

Closing this discussion, Fabby expresses the urgency for the public to know this issue contextually so that there would be no panic in the community. “Indonesia itself does not need to worry about energy crises that occur in Europe, China, Britain, India, because Indonesia has the advantage of a better energy transition planning towards decarbonization way earlier,” concluded Fabby.


Watch again the discussion here: