Jakarta, 9 March 2023 – Solar energy has the potential to be developed massively in Indonesia. The Institute for Essential Services Reform in its report entitled “Beyond 207GW” states that the technical potential of solar energy in Indonesia reaches 20,000 GW. Unfortunately, the use of solar energy is still minimal. It is noted that the installed capacity of new solar energy is around 270.3 MW until 2022.
In the talk show “Bincang Energi Surya”, the collaboration of six institutions namely the Institute for Essential Services Reform (IESR), Solar Scholars Indonesia (SSI), the Indonesian Student Association (PPI) Australia, the Korean Indonesian Research Association (APIK), the New Generation Solar Energy Institute (Insygnia) ), and Solarin, Anindita Satria Surya, Vice President of Energy Transition and Climate Change of PT PLN stated that the development of solar energy is very necessary for the development of renewable energy.
“The description of the JETP scenario is first, building a large baseload such as hydropower, second, building a strong transmission network, and third, building supporting plants such as PLTS,” he explained, explaining the big picture of PLN’s plans to build renewable energy generators in the next few years.
In addition to a comprehensive investment plan for implementing the Just Energy Transition Partnership program, the development of renewable energy generators is also guided by the RUPTL. In the 2021-2030 RUPTL, it is planned that Indonesia will have more than 50% of the energy used come from renewable energy sources. Solar energy itself is planned to increase by 4.6 GW until 2030.
Widi Nugroho, Sub-Coordinator of Supervision of Various New and Renewable Energy Businesses, Ministry of Energy and Mineral Resources emphasized that to pursue the target of a renewable energy mix of 23% by 2025, fulfillment will be prioritized with solar energy.
“For the development of NRE generators, priority is given according to the 2021-2030 RUPTL where solar will increase by 4.6 GW in 2030,” he explained.
Based on the government’s plan, solar energy will be the main pillar of Indonesia’s electricity system with a capacity of 461 GW in 2060. As Indonesia receives the Just Energy Transition Partnership (JETP) funding, it opens up various funding opportunities for renewable energy projects and technology research.
On the same occasion, Muhamad Rosyid Jazuli, Policy Researcher, Paramadina Public Policy Institute, stated that currently there is one main challenge from the policy side, namely the accumulation of a number of commitments that are not accompanied by derivative regulations so that progress towards achieving the promised commitments does not run smoothly.
“The high dominance of coal in Indonesia’s electricity system and the price of coal which is considered relatively cheaper is one of the challenges in developing renewable energy, especially solar,” explained Rosyid.
Rosyid also added that in addition to policies, public perceptions need to be developed in relation to renewable energy and low-carbon technologies so that behavior changes can occur. At present, renewable energy or other low-carbon technologies, such as electric vehicles or rooftop PV, have not become the people’s first choice. Limited information related to technology and prices that are still relatively expensive are some of the aggravating factors in society.
Bincang Energy Surya is a series of public dissemination events about solar energy. Solar energy thematic dissemination will be held regularly, every two weeks until June 2023, covering topics; Indonesia’s solar energy landscape, current policies, technology, industry, socio-economic and human resource readiness to support the Just Energy Transition Partnership (JETP) and Net Zero Emission (NZE) targets.
Jakarta, March 6, 2023 – The Clean, Affordable and Secure Energy (CASE) Program of Indonesia alongside the Ministry of Planning and National Development/National Development Planning Agency (Kementerian PPN/Bappenas) launched a series of multi stakeholder discussions ahead of the Indonesian Sustainable Energy Week (ISEW) that will be hold on October 2023. The discussions were kicked off under the theme of “Emerging New Technologies to Support Energy Transition in Indonesia”, where different experts address the Indonesian context of technologies for renewable energy and the challenges faced to implement them.
Devi Laksmi, Coordinator of Conservation Energy Development Working Group of the Ministry of Energy and Mineral Resources (MEMR), stated the renewable energy target of Indonesia which should reach around 23% by 2025 and how the country still has massive gaps to achieve this said target. MEMR is currently developing its strategy to maximize RE potentials.
Moving forward with the discussion, Mentari Pujantoro, Project Managerof Agora Energiewende said the global carbon emission has reached its historical peak in 2022 which is caused by fossil fuels and energy consumption. Renewables, Energy Efficiency and Renewable-based Electrification can contribute to 70% of worldwide emission reduction.
“Indonesia needs to identify the existing technologies and their roles first before moving on to new technologies,” said Mentari.
Badariah Yosiana, Programme Officer the International Renewable Energy Agency (IRENA) explained the opportunities of renewable energy utilization towards Indonesian economic growth. Energy technologies could benefit the industry sector.
“For example green hydrogen could be utilized as a clean energy source and as a producer of Nickel, Indonesia could become a battery producer and exporter which would contribute to the integrated electric vehicle (EV) supply chain and solar PV manufacturing,” stated Badariah.
Beni Suryadi, Manager of ASEAN Centre for Energy stated that although renewable energy such as wind and solar will dominate the energy mix in Indonesia starting from 2031, however not a single country can reach 100% net zero emission just from utilizing both energy.
“In other parts of the world, there have been debates on the possibility of Nuclear as a secure and reliable option to replace coal. However, some still deemed this clean source of energy inflexible due to the safety requirements,” said Beni.
After three panelists presented different technologies and their feasibility, Prof. Dr. Ir. Suwarno, M.T., Lecturer of Bandung Institute of Technology, Professor of School of Electro Engineering and Informatics addressed a critical question of the country’s readiness of these technologies. He raises an issue about human resources, acceptance, awareness and regulations that would contribute heavily to the process of energy transition in Indonesia. As an academic himself, he pointed out that education and research institutes will play massive roles in preparing the skilled human resources needed to succeed.
Mr Zainal Arifin as the Executive Vice President of Engineering and Technology, State Electricity Company (PLN), said the challenges faced by Indonesia: over capacity and the trilemma of energy to ensure affordability, reliability and sustainability. Until now, the only energy source which could cover all three is hydro power according to PLN. He pointed out that in developing strategies for energy technologies, flexibility and adaptability have important roles as it is not a linear process and will be implemented in the long run.
Finally, Mr. Agus Tampubolon as the Program Manager of CASE wrapped up the discussion and presented the timeline of discussions, which will be held four times with different topics.
“These next discussions will focus on one topic at a time for a deeper conversation and all the findings will be presented at Indonesia Sustainable Energy Week (ISEW) in October 2023”, said Agus.
Jakarta, 21 February 2023 – The transportation sector contributes almost a quarter of the energy sector’s emissions in 2021. Most of the transportation sector’s emissions come from fuel, of which 52% comes from imported fuel. Given the Indonesian government’s target of achieving net-zero emission status by 2060 or sooner, it is important to decarbonize the transportation sector.
Adapting the ASI approach, i.e: Avoid – Shift – Improve, the Institute for Essential Services Reform (IESR) is looking at one of the decarbonization strategies for the transportation sector, namely electric vehicles. Explained by Fabby Tumiwa, Executive Director of IESR during the launch report of the Indonesia Electric Vehicle Outlook 2023, that the number of electric vehicles in Indonesia has continued to increase in the last 5 years, but the market share is still low.
“However, the electric vehicle market share is only 1% of total vehicle sales in Indonesia per year. Several factors still make potential buyers reluctant, such as the high initial price, and supporting ecosystems such as charging stations which are still limited in number,” he explained.
As one of the supporting ecosystems for electric vehicles, charging stations, both Public Charging Stations (SPKLU) and Public Battery Swapping Stations (SPBKLU) have an important role in accelerating the adoption of electric vehicles. Psychologically, the number of charging stations influences the decision of potential EV consumers.
“In numbers, the number of SPKLUs actually continues to grow. But currently it is still concentrated in Java and Bali. Only 12% of SPKLU are located outside Java – Bali,” explained Faris Adnan, IESR Power System researcher.
In addition to the number of charging stations, Faris stated a few more things, including the type of charging system, which currently most of the SPKLU is slow charging type one. It is necessary to look for a comprehensive location to determine the type of charging used. Office areas and shopping centers where people will stay around can use medium or slow charging. However, for places such as public charging on roads, it must use the fast-charging type.
Standardization of charging ports is also one of the discussions in this report. Faris explained that currently there are 3 types of charging ports for four-wheeled electric vehicles. This is one of the obstacles for prospective SPKLU investors because the obligation to provide these three types of ports has an impact on the investment capital that must be provided.
“If the government manages to standardize port charging, the investment value for SPKLU will be more attractive,” explained Faris.
Ilham Fahreza Surya, IESR environmental policy researcher, who is also the author of IEVO 2023 added that the government’s discourse to provide price incentives for electric vehicles should focus specifically on public transportation, logistics vehicles, and two-wheeled vehicles.
“We recommend that the government give priority to two-wheeled vehicles to get incentives to cut prices, and also combine this incentive plan with TKDN rules. So those who are entitled to receive incentives are motorbikes that come from manufacturers who have complied with TKDN regulations,” explained Ilham.
From an industrial standpoint, electric vehicle assembly is the most advanced industry compared to the other supporting electric vehicles component industry. One of the highlights is Indonesia’s plan to downstream nickel into batteries.
Pintoko Aji, IESR’s renewable energy researcher, sees that the Indonesian government’s plan can be utilized by the electric vehicle industry that intends to operate a factory in Indonesia.
“With the existence of a domestic battery industry, domestic electric vehicle manufacturers can use domestically produced batteries in their vehicles as a strategy for fulfilling TKDN components,” explained Pintoko.
In a panel discussion following the presentation of the Indonesia Energy Transition Outlook 2023 report, Wildan Fujiansah, Coordinator of Electricity Technical Feasibility, the Ministry of Energy and Mineral Resources explained that, to answer several issues in the provision of electric vehicle ecosystems in Indonesia, they issued a MEMR ministerial regulation No.1/2023 which regulates one of them regarding standardization charging port, power and battery size.
“Ministerial Regulation No. 1/2023 also regulates SPKLU investment, which previously had to provide 3 charging ports, now only 1 is enough. One of the objectives of this regulation is indeed to boost SPKLU investment,” explained Wildan.
Riza, Senior Researcher for Electric Vehicle Charging Infrastructure, BRIN stated that from a technical point of view the electric vehicle charging process is not just a device with a certain technology.
“In its development, the charging process must match the battery features while the EV continues to develop, “said Riza.
From the user side, two-wheeled electric vehicles are currently widely used by ride hailing companies for their driver partners. However, to increase the confidence of potential users to switch to using electric vehicles, the number of supporting infrastructure, especially battery swapping stations, needs to be increased.
Rivana Mezaya, Director of Digital and Sustainability Grab Indonesia emphasized that from an industrial point of view, electric vehicle users can explore various efforts to own electric vehicle units, but support is needed regarding the availability of supporting infrastructure such as battery swapping stations.
“This collaboration with various parties will encourage the general public to be able to take part in the energy transition in Indonesia,” said Meza.
In addition to collaboration to create an ecosystem that supports electric vehicles from upstream to downstream, dissemination of comprehensive, easily accessible and discoverable information is very important to encourage changes in people’s behavior. This was said by Indira Darmoyono, Chairperson of the Environmental and Energy Transportation Forum, Indonesian Transportation Society.
“Good practices in using electric vehicles and important information such as where conversion workshops are certified, conversion costs, incentives in various forms must be widely publicized so that people have sufficient information and are motivated to switch to electric vehicles,” concluded Indira.
The Indonesia Electric Vehicle Outlook report is one of the main IESR reports, and can be read through https://iesr.or.id/pustaka/indonesia-electric-vehicle-outlook-ievo-2023
Jakarta, December 15, 2022 – The Institute for Essential Service Reform (IESR) launched the Indonesia Energy Transition Outlook (IETO) 2023 report. IETO 2023 is the 6th edition; previously, this report was titled Indonesia Clean Energy Outlook in 2017 but changed its name in 2020. Its transformation widens the analysis from initially focusing solely on clean energy developments to analyzing the energy system, including its funding system.
Deon Arinaldo, Manager of the Energy Transformation Program, IESR, stated that Indonesia’s energy transition had entered a new phase. It’s reflected in several published policies supporting adopting low-carbon and low-emission technologies, such as Presidential Decree 112/2022. In addition, the achievement of funding commitments for the energy transition Just Energy Transition Partnership (JETP) and infrastructure projects resulted from the G20 Summit. IESR also reviewed this topic in the IETO 2023 report.
“Funding is one of the keys to a successful energy transition in Indonesia. Furthermore, we also highlight the role of solar power in the energy transition and the development of electric vehicles,” he said.
Fabby Tumiwa, Executive Director of IESR, presented at the report’s launch and discussed the Indonesia Energy Transition Outlook (IETO) 2023 organized by IESR with the support of Bloomberg Philanthropies, explained that the earth’s temperature has increased by at least 1.1°C. Without intervention, the temperatures can reach 2.8°C. Furthermore, Fabby emphasized that a transition to renewable energy is crucial to limiting the increase in the earth’s temperature to more than 1.5°C.
“The IESR study shows that solar PV is coupled with a storage capacity of 50% and 100%, so renewable energy will be cheaper than operating a coal-fired power plant (CFPP) after 2032. That is, when we still maintain fossil power plants in the energy system, we will face an increase in much more expensive energy costs,” explained Fabby Tumiwa.
The Executive Director of IESR, Fabby Tumiwa attended the launch and discussion of the Indonesia Energy Transition Outlook 2023
Fabby continued that enlarging the portion of renewable energy in Indonesia’s energy system is far more profitable than utilizing fossil energy or maintaining fossil energy with carbon capture technology, such as carbon capture and storage (CCS). However, 87% of the electricity consumed by Indonesia still comes from fossil energy and only 13% from renewable energy. For this reason, Fabby said three things needed to be done to encourage the energy transition.
“First, make the most of Indonesia’s renewable energy potential for the electricity, transportation, industrial and other sectors. Based on the latest ESDM study, Indonesia has far more than enough renewable energy potential to achieve 100% renewable energy to achieve net zero emissions (NZE). By increasing renewable energy, we also have to reduce coal power plants. Second, boost investment for the energy transition,” said Fabby.
The IESR study assesses that Indonesia will need USD 25-30 billion in investment from now until 2030 to support the achievement of net-zero emissions (NZE) by 2060 or sooner. A no-regrets policy is required to obtain investment, or once there is a policy, it cannot be revoked or terminated. Second, it is necessary to reform policies that hinder renewable energy. Thus, said Fabby, the government must review the domestic market obligation (DMO) for coal mining because this policy contradicts Indonesia’s efforts to promote renewable energy. Third, managing the energy transition process. The energy transition is a risky action because it will cause an increase in costs in the short term, and at the same time, we are still dependent on coal energy. Moreover, the energy transition process needs to be managed effectively so that the energy transition process will be smooth.
On the same occasion, the Secretary General of the Ministry of Energy and Mineral Resources (ESDM), Rida Mulyana, explained that the energy transition is one of the priority issues at the G20 Indonesia Presidency in 2022. It can be seen by the Bali Compact agreement, which can serve as a guide to achieving the NZE 2060 or faster. Furthermore, Indonesia already has a road map for the transition of new renewable energy (NRE) to net zero emission in 2060, created by the Ministry of Energy and Mineral Resources.
Secretary General of the Energy and Mineral Resources (ESDM) Ministry, Rida Mulyana, attended the launch and discussion of the Indonesia Energy Transition Outlook 2023
“Indonesia plans to build massive solar PV starting in 2030, followed by onshore and offshore wind power plants starting in 2027, and geothermal will also be maximized. Indonesia will optimize hydroelectric power plants, we will send the electricity to load centers on other islands, and nuclear power plants will operate in 2039,” said Rida Mulyana.
Akbar Bagaskara, IESR Electricity System Researcher, stated the electricity system is low-hanging fruit to reach NZE. The electricity system contributes 250 MtCO2 emissions, or about 40% of emissions in the energy sector. Renewable energy status in the energy mix is 12.67%, while the 2025 target is 23%. Thus, said Akbar, Indonesia needs to reduce its fossil capacity and seek alternative energy sources to achieve this target.
“At least Indonesia can use renewable energy that has not been maximized, such as solar and wind. Then, the transmission network (grid) must also be made flexible. However, regulations are needed regarding guidelines for operational systems and negotiations for generating units,” said Akbar.
In line with Akbar, Raditya Yudha Wiranegara, IESR Senior Researcher, explained that what can be done to provide renewable energy penetration is to operate CFPP flexibly. Technically, this operation requires changes in the main components of the CFPP.
“Flexible operation will require flexibility regarding power purchase agreements and fuel supply contracts. According to the IEA, by making these contracts more ‘flexible,’ there will be savings of 5% of the total operating costs for a year, or the equivalent of USD 0.8 billion. Grid Code should also be made more detailed. This is also necessary so that operators have guidelines for operating regulations in a flexible manner,” stated Raditya.
Julius Christian, IESR Clean Fuel Specialist Researcher, explained that until now, fossil energy consumption in transportation had reached 87%, the industry has reached 56%, and buildings have reached 41%. In the transportation sector, using electric vehicles is a crucial strategy for a low-carbon transportation system because it has higher energy efficiency and uses renewable energy. Julius explained that up to now, 199 buildings had been certified as green buildings in Indonesia, even though large buildings should already have green building certification.
“We need to focus on four things to accelerate the energy transition; 1) regulations encourage people and industries to switch to carbon-efficient technologies; 2) the government needs to socialize more to increase public awareness to switch to low-carbon; 3) incentives and financing schemes are also worth considering; 4) preparing the supporting ecosystem,” said Julius.
On the other hand, Martha Jessica, IESR Social and Economic Researcher, said the importance of collaboration between the central government and local governments to promote the energy transition and achieve NZE. Currently, 71.05% of provinces in Indonesia have established Regional Energy General Plans (RUED), in which each region sets its energy mix targets.
“One province that has shown a commitment to the development of renewable energy is Central Java. Interestingly, there is a new commitment to green recovery this year. This is defined as using public budgets to target the site level, especially for renewable energy development. Approximately IDR 8.9 billion has been budgeted for this commitment. This development has succeeded in increasing the income of its users by 2-3 times, where farmers get an easier water source through solar water pumps,” said Martha.
Handriyanti Puspitarini, the IESR Senior Researcher, said several essential things in Indonesia’s energy transition status, namely, fossil energy use, had increased this year due to the increasingly vibrant economy. Still, this condition is sure to change due to the large amount of foreign assistance to reduce emissions, especially in the electricity sector. She considered that regulations supporting renewable energy penetration need to be available. She gave an example that limiting the capacity of a rooftop solar PV by 15% would reduce people’s interest in utilizing it and suppress community participation regarding the renewable energy mix on a national scale.
“Thus, changes are needed, such as increasing financial support for rooftop solar PV project developers, clarifying tariff schemes and licensing processes, and increasing developer access to capital with lower interest rates. Implementation of President Regulation112/2022 also needs to be observed next year. Some people also think that this is the time for Indonesia to do an energy transition and utilize other energy sources such as solar, water, and wind,” said Handriyanti.
Jakarta, 15 December 2022 – Various global geopolitical events throughout 2022 have affected the increase in the price of fossil energy commodities. As a sector that influences and drives other sectors, the energy sector plays an important role in various aspects ranging from socio-economic to political. The global energy crisis in 2022 can be an opportunity for Indonesia to take advantage to accelerate the energy transition.
Indonesia’s energy market, which still relies heavily on subsidies, has made Indonesia feel less impacted by the global energy crisis due to soaring fossil commodity prices. However, it cannot be denied that the government’s fiscal capacity is no longer as large as the past 2-3 years considering that so many energy subsidies have been issued.
This was conveyed by Dannif Danusaputro, President Director of PT Pertamina New & Renewable Energy at the launch of the Indonesia Energy Transition Outlook 2023 report, by the Institute for Essential Services Reform (IESR), Thursday 15 December 2022.
“The increasingly narrow fiscal space will inevitably force the government to adopt unpopular policies and this can be captured as a momentum for accelerating renewable energy,” explained Dannif.
It is not only the global energy crisis that can become a momentum for accelerating renewable energy, but also the commitment to finance the energy transition in Indonesia. At the G20 Summit in November 2022, Indonesia received US$20 billion in energy transition funding through the Just Energy Transition Partnership (JETP) scheme. This fund is disbursed by the International Partners Group which consists of the G7 countries plus Denmark and Norway.
Suzanty Sitorus, Executive Director of Viriya ENB, said that JETP’s funds are not sufficient to finance the energy transition process in Indonesia, but that does not mean that its role is not important.
“What is more important is what (these funds) are intended for. Will the USD 20 billion lay the foundations for us to have a faster transition or not,” said Suzanty.
She added that it is important for Indonesia to learn from South Africa (a previous recipient of JETP funding), about an investment plan that suits the needs of the recipient country.
Harris, Director of Geothermal, Directorate General of Electricity at the Ministry of Energy and Mineral Resources, stated that since the G20 Summit, the interest of entrepreneurs to invest in renewable energy, especially geothermal, has increased. This is a good thing for pursuing renewable energy targets in RUPTL.
“I don’t think the current RUPTL needs to increase the target, but we have to make sure that the existing target of 51% renewable (around 20.9 GW) is actually achieved,” said Harris.
He added that it was important to ensure that the RUPTL target was achieved because several times the government did not achieve the RUPTL target.
In addition to adding the installed capacity of renewable energy, energy efficiency is also one of the strategies to achieve net-zero emission status, especially in the industrial sector. Octavianus Bramantya, a member of the Net Zero Hub daily work team, KADIN, explained that the industrial sector is quite aware of the need to transition to cleaner energy sources, but they are still waiting for regulatory certainty.
“There has been an explosion of net-zero pledges from companies. Companies are no longer competing through price and product quality, but because there is a carbon footprint assessment for exports, companies have started to be motivated to think about their carbon footprint,” said Bramantya.
Companies engaged in foreign markets have considered this. Local companies still see this carbon calculation as an obstacle, so it is a challenge for KADIN Net-Zero Hub to help restructure capex values and show that low carbon development is actually profitable.
Semarang, December 8, 2022 – Indonesia is setting a target to achieve a renewable energy mix of 23% in 2025. In order to encourage the energy transition in Central Java, the Institute for Essential Services Reform (IESR) and the Central Java Provincial Government are holding the Central Java Stakeholder Gathering 2022 with the theme ‘Energy Transition for Development of Low Carbon Areas’ which takes place annually via hybrid.
Achmad Husein, The Regent of Banyumas, stated that he had closed the two most giant landfills in Banyumas to reduce carbon. Garbage will be sorted into useful, non-organic and organic waste.
“In managing waste, Banyumas uses technological solutions divided into two types, first downstream (community), by using a waste bank. Second, an app initiative to reduce plastic waste upstream, by buying all plastic from the community (various types of plastic). Then, there is also an application for people to sort organic waste and get paid. Each kilogram of organic waste is paid Rp. 100, “explained Achmad Husein.
Tavip Rubiyanto, Head of Sub-Division of Energy and Mineral Resources, Directorate of Synchronization of Regional Government Affairs I, Directorate General of Regional Development, Ministry of Home Affairs, explained the importance of regional development, which can make a significant contribution to national development. However, several cities still need to prepare a Regional Energy General Plan (RUED), so assistance from the Central Government is required in its design. The problem is that regions can only contribute as much as the authority they hold.
“Regional authority for energy transition is relatively small, so its contribution is also relatively small. For this reason, the Ministry of Home Affairs will draft a Presidential Decree for Strengthening Regional Roles. Consequently, the regions need to revise the RUED according to the new authority/budget to support the energy transition target,” Tavip explained.
In line with Tavip, Djoko Siswanto, Secretary General of the National Energy Council (DEN) hopes that there will be better coordination and cooperation between local governments in Indonesia to achieve renewable energy goals. For example, the Central Government can instruct local governments to use electric vehicles in implementing RUED. Even so, there are still obstacles in increasing energy utilization in accordance with regional potential, most importantly funding.
“On the other hand, we need international support to face the funding challenges in the energy transition. For this reason, regional regulations can become a basis for investors in developing renewable energy in the region. It could be with the cooperation of region-owned business entities, the private sector, and international parties,” said Djoko.
To support the acceleration of the energy transition in the region, Muhammad Firdaus, Deputy Head of Bank Indonesia Representative for Central Java Province, explained that green financing (green economy) in Central Java is significant o support a sustainable economy. The green economy is projected to deliver benefits such as job creation, and help ease export barriers. Thus the reduction in production costs is only a maximum of 10%, making it less attractive for companies to implement a circular economy.
“Bank Indonesia is trying to encourage banks to extend credit to the green economy sector. One of the projects that has been carried out is Green Loan to Value Ratio (LTV) 0% (without down payment) and allows buying green bonds to meet the Macroprudential Inclusive Financing Ratio (RPIM),” he said.
Meanwhile, Ignasius Iswanto, General Manager Engineering, PT Djarum OASIS Kretek Factory stated that Djarum had made efforts towards sustainability. For example, Djarum already has a carbon footprint report, water resources management, energy saving, and composting. Furthermore, PT Djarum uses a biomass boiler with wood chip fuel on boilers. Emissions reduced from planting rain trees (trembesi) in the Djarum Bakti Lingkungan Program amount to 4,457,400 million tonnes of CO2e. He also explained that through his efforts to make Djarum an environmentally friendly company, he discovered another energy producing source using wastewater, namely plasma energy.
“Plasma energy should also be considered as a source of renewable energy, where liquid waste can be broken down by plasma into electricity and clean water. However, its use is more suitable for industrial complexes,” said Ignasius.
Semarang, December 8, 2022 – The energy transition has become urgent as the world responds to the challenge of building a more resilient energy system. Thus, there needs to be synergy between the government and the private sector. The Institute for Essential Services Reform (IESR) and the Central Java Provincial Government held the Central Java Stakeholder Gathering 2022 with the theme’ energy transition for low-carbon regional development’ to encourage the energy transition in Central Java.
Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR) explained, Central Java has an important role as a beacon of energy transition in Indonesia. Fabby said that the rapid development of the energy transition in Central Java could be a lesson for other regions that leadership, regional innovation and collaboration are the keys to the success of the energy transition’s success toward low-carbon development.
“Overcoming the threat of the climate crisis is very relevant to what is happening in Central Java. Various practices of using renewable energy in Central Java have occurred and illustrate how the community is able to encourage the energy transition with their own efforts supported by the government to make innovations. This is what we call the Gotong Royong Energy Transition,” said Fabby Tumiwa.
Moreover, the Deputy Governor of Central Java, Taj Yasin Maimoen, stated that Central Java had made a Regional Energy General Plan (RUED) as a guideline for energy development. It has been implemented through Regional Regulation (Perda) Number 12/2018, stipulated on December 19, 2018. This regulation regulates energy conservation, conservation of energy sources, and energy diversification. The government is also pushing for energy autonomy in the villages and utilizing the energy potential in each town.
Deputy Governor of Central Java Taj Yasin Maimoen attended the Central Java Stakeholder Gathering 2022 on Thursday (8/12/2022). Dok. Central Java Provincial Government.
“In one village in Magelang, we saw a huge potential for renewable energy. It is impossible for the provincial government to work without the paradigm of its people. In their case, the farm has been centralized, owned by the community and made into one place. There are hundreds of goats whose feces need to be processed. Not only as fertilizer but can also be made as renewable energy,” said Taj Yasin.
Sujarwanto Dwiatmoko, Head of the ESDM Office for Central Java Province, explained that Central Java has made innovations related to renewable energy through projects such as Central Java Solar Province. This program is expected to help Central Java achieve an energy mix level of 23.32% in 2025.
“The most notable impact of Central Java Solar Province is the increase of capacity in rooftop solar power plants in Central Java from 0,1 MWp in 2019 to 22 MWp in 2022,” said Sujarwanto.
On the other hand, Widi Hartanto, Head of the Central Java Province Environment and Forestry Service (DLHK), his party is currently studying the reusability of wastewater and waste into new, renewable energy.
“This program aims to survey the characteristics of wastewater and garbage and hold focus group discussions related to waste management into renewable energy in cities such as Pati, Sukoharjo, Boyolali, Kab. Semarang, Karanganyar, Grobogan, Kab. Magelang, Magelang City, Temanggung, Klaten, Semarang City, Kab. Semarang, Kab. Karanganyar, Boyolali, Salatiga, and Kudus,” explains Widi.
To realize low-carbon development, M Arif Sambodo, head of the Department of Industry and Commerce in Central Java, emphasized that the industrial sector is the most significant contributor to carbon emissions. Thus, his party plans to strengthen partnerships with the local steel industry to supply solar panel production to reduce greenhouse gas (GHG) emissions.
“Currently, there are demands from consumers for the industry to start using new and renewable energy (NRE) so that it demands the industry to use NRE in its production process,” said Arif.
Meanwhile, Muhammad Iqbal, President Director of Jateng Petro Energi (JPEN) explained three strategies to support the energy transition: strengthening ecosystem institutions, solarpreneurship (creation of green jobs), and capacity building.
“JPEN is committed to encouraging a more massive energy transition, such as floating Solar PV, rooftop Solar PV, Solar PV training, carbon trading, and the construction of public electric vehicle charging stations (SPKLU) which are important parts of the electric vehicle ecosystem,” explained Iqbal.
Jakarta, December 6, 2022 – Nowadays, climate change in the world affects increasing the intensity of climate disasters and threatens human life and biodiversity. Thus, government commitment and concrete targets are needed to reduce emissions, like setting a more ambitious target in the Enhanced Nationally Determined Contributions (NDCs) document, which Indonesia submitted in September 2022. Its document contains an increase in the target for reducing greenhouse gas (GHG) emissions by around 2%.
Based on the latest NDC document, Indonesia will reduce emissions with an unconditional scenario of 31.8% and international assistance (conditional) of 43.2% in 2030. However, based on an assessment of Indonesia’s climate targets and ambitions by the Institute for Essential Services Reform (IESR) which is a member of the Climate Action Tracker (CAT), a consortium of three think tanks that monitors and assesses climate change policies in 39 countries and the European Union. IESR and CAT estimate that Indonesia’s NDC has not been linear, with a target of 1.5°C. It’s more robust numerically but still not driving further climate action. Indonesia is likely to achieve its targets (except forestry) without additional effort, while its emissions are almost double today. For this reason, Indonesia needs to update the Business-As-Usual Scenario (BAU) so that it is linear with more vital targets.
“Indonesia contributes to global warming. We need a more ambitious greenhouse gas (GHG) reduction target. The later we block GHG, the greater the risk of climate disaster. For example, floods and tornadoes indicate that the costs to deal with these situations are also higher, and an appropriate solution is needed. For this reason, we need to calculate the environmental costs for climate change mitigation and adaptation,” explained the Executive Director of IESR, Fabby Tumiwa, at the launch of the results of the CAT assessment of Indonesia’s climate action and policies.
Shahnaz Nur Firdausi, Energy, and Climate Researcher, IESR, stated renewable energy only account for 13.5% of the power generation mix in 2021. Indonesia needs to make substantial progress in meeting the 23% renewable energy target by 2025. Several studies have shown how Indonesia can increase its renewable energy potential far beyond current plans and supply 100% of its electricity from renewable sources by 2050.
“Although coal still plays a major role in Indonesia’s electricity system, the government has planned to discontinue the PLTU. However, to meet the temperature limit of 1.5°C, coal use in Indonesia must decrease by 10% by 2030 and be phased out by 2040. Indonesia will need significant financial support to plan for the retirement of PLTU under the Paris Agreement,” Shanaz explained.
Deputy Director for Environmental Law Enforcement at National Development Planning Agency (Bappenas), Erik Armundito, emphasized that his party has a low-carbon development policy. It’s integrated with the national priorities of the 2020-2024 RPJMN, complemented by strategy indicators and clear targets every year.
“The macro indicators mean percentage of potential GHG reduction with a target of 27.3% in 2024 and the percentage of reduction in GHG intensity with 31.6% in 2024. Setting this target is Indonesia’s step forward in environmental preservation. In addition, Bappenas has the AKSARA application for monitoring, evaluating, and controlling the reduction of GHG emissions resulting from low-carbon development,” explained Erik.
Madani Foundation Executive Director Nadia Hadad said collaboration between various parties is needed to encourage the achievement of the 1.5°C targets. Various parties must have a role and contribute.
“We all have a role. This CAT report is not to criticize but to encourage better steps. Everything we have done to save the earth; for this, we need accountability and transparency,” said Nadia Hadad.
Mahawan Karuniasa, Chair of the Indonesian Network of Climate Change and Forestry Experts (APIKI), said carbon emissions produced by all countries in the world are projected to be no more than 33 gigatonnes in 2030 to keep the earth’s temperature no more than 1.5°C. However, the estimated carbon emissions produced reach 58 gigatonnes.
“If there is NDC implementation in all countries, then the estimated emissions can decrease to 53-56 gigatonnes in 2030. It means there is still a huge gap between 20-23 gigatonnes. When all countries, including Indonesia, cannot fill this gap, we can reach above 1.5°C,” said Mahawan.
Sonny Mumbunan, an economist and researcher from the Research Center for Climate Change at the University of Indonesia, believes it is also necessary to discuss the climate finance section in depth in the Climate Action Tracker report.
“When Indonesia became a member of the G20 with the narrative of having high economic growth, this became a dilemma for Indonesia. Remember, Indonesia also still needs funds from other countries. It also affects how we approach the energy sector, the land-based sector as well as the loss and damage sector. It seems that Indonesia needs a different approach based on its profile, which is between developed and developing countries,” said Sonny.
Climate Action Tracker is an independent scientific analysis initiative that tracks countries’ climate actions and measures them against the globally agreed Paris Agreement goal of holding warming well below 2°C and pursuing efforts to limit warming to 1.5°C. CAT has provided an independent analysis of around 40 countries since 2009. CAT members include Climate Analytics, the New Climate Institute, and the Institute for Essential Services Reform (IESR), which joined as partners in 2022.
Surabaya, November 25, 2022 – Electrical energy is one of the human needs that integrates into daily needs. Increasing access to electricity through 100 percent electricity ratio also needs to be coupled by providing energy sources that are more environmentally friendly.
Akbar Bagaskara, Electricity System Researcher, Institute for Essential Services Reform (IESR), in a public discussion forum with the theme “Stakeholder Synergy in Efforts to Increase Electrification and Per Capita Electricity Consumption in Indonesia” organized by the Directorate General of Electricity, Ministry of Energy and Mineral Resources, stated that there are five countries in ASEAN that have not achieved a 100% electrification ratio, such as Cambodia, Laos, Myanmar, Indonesia, and the Philippines.
“Based on data from the ASEAN Center of Energy as of 2021, Indonesia has an electrification ratio of 99%, followed by the Philippines at 97%, Laos at 95%, Cambodia at 81%, and Myanmar at 51%. Indonesia and the Philippines have not yet achieved a 100% electrification ratio due to the condition of the archipelagic countries. This condition is a challenge compared to other ASEAN countries, which are mainland, therefore, it is easier to distribute electricity, “explained Akbar.
Observing the electrification ratio must be connected to electricity consumption in Indonesia. Akbar said that the majority of electricity consumption in the household sector is used for lighting. As for cooking, they still use liquefied petroleum gas (LPG), with a ratio of total energy consumption in the household sector of up to 49%.
“The existence of these conditions creates the potential to electrify stoves used by the household sector, replacing LPG,” said Akbar.
In addition, based on data from the Ministry of Energy and Mineral Resources, said Akbar, electrification in the transportation sector still tends to be low, around only 1%. According to him, the Indonesian Government’s program to promote electric cars is crucial to increasing the adoption of electric vehicles.
“Full utilization of electrification potential will create opportunities to increase electricity consumption in the transportation and household sectors,” said Akbar.
Furthermore, Akbar explained that electrical energy use in Indonesia and other ASEAN countries is still only around 20%. It can be seen based on energy consumption data per capita for 2018-2021. On the other hand, based on the MEMR 2020-2024 Strategic Plan (RENSTRA), Indonesia’s electricity consumption target per capita is 1,408 kWh. Meanwhile, the average electricity consumption in ASEAN itself is around 3,672 kWh per capita.
Head of the Electricity Sector at the East Java ESDM Office, Waziruddin, stated that based on an electrification ratio of 99.32% in the third quarter of 2022, there are households that have not had electricity connections. This can also be seen from the number of low-income families (RTM) in East Java that do not have electricity, around 126,708. However, his party has budgeted around IDR 12 billion in house installation grants in 2023 and various other assistance to provide access to electricity for these households. In addition, Waziruddin stated that the East Java Provincial Government continues to push for an energy transition policy to increase energy security.
“For example, using geothermal as a substitute for coal energy in power plants, considering that East Java is rich in geothermal potential. In addition, several industries in East Java have also installed rooftop solar power plants, developed biomass power plants, and utilized biofuels,” said Waziruddin.
Edy Pratiknyo, Sub-Coordinator of Business Commercial Relations Facilitation, Ministry of Energy and Mineral Resources, stated that the Directorate General of Electricity is pushing for an accelerated increase in electricity consumption.
“With the program to increase electricity consumption, the government is pushing through accelerating permits for charging infrastructure for Battery-Based Electric Motorized Vehicles (KBLBB),” Edy concluded.
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