The investment cooperation for energy transition, Just Energy Transition Partnership (JETP), launched at the G20 Indonesia Summit, will not fund Carbon Capture Utilization and Storage (CCUS) technology projects.
Read more on Kumparan.
Unlike most other countries, the energy structure in Indonesia is very government-centered; in this case, it is controlled by the Ministry of Energy and Mineral Resources with execution by PLN.
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The government is preparing a roadmap for the early termination of a coal-fired power plant or PLTU operation. The draft document contains, among other things, a list of PLTUs with a total capacity of 4.8 gigawatts which will accelerate their active life in 2030.
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The Institute for Essential Services Reform (IESR) states that funding to execute the energy transition in Indonesia requires significant funds. If using the Just Energy Transition Partnership (JETP) scheme, according to IESR calculations, at least the expected portion of the grant is 10% -15% or US$ 1.5 billion to US$ 2 billion.
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The Institute for Essential Services Reform (IESR) encourages the government to increase the portion of the Just Energy Transition Partnership or JETP energy transition funding grant to a minimum of 10% or approximately US$ 2 billion of the total JETP funding commitment of US$ 20 billion.
Read more on Kata Data.
ASEAN countries are estimated to need up to US$ 987 billion to achieve the short-term energy transition target in 2030 to achieve a net zero scenario in 2050.
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Public funding through state securities or SBN issuance can be an alternative to realizing the energy transition. The government has issued several sustainable bonds with specific objectives or thematic bonds, which can be an option for energy transition funding allocations.
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Akbar Bagaskara, Electricity System Researcher, said from the analysis conducted in this report that the cancellation of coal-fired power plants coupled with early retirement for power plants could help achieve the peak emission target agreed upon in the Just Energy Transition Partnership (JETP).
Read more on KONTAN.
The Institute for Essential Services Reform (IESR) proposes the government to cut room for negotiating a power purchase agreement (PPA) that is too long between PT Perusahaan Listrik Negara (Persero) or PLN and developers of private new renewable energy (EBT) generators with power capacity equivalent to or below 25 megawatts (MW).
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The Institute for Essential Services Reform (IESR) said the ASEAN network interconnection project through the ASEAN Power Grid (APG) could be a starting point for ASEAN countries to be able to increase renewable energy capacity in the electricity sector.
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As the chairman of ASEAN 2023, Indonesia can play a strategic role. In the development of renewable energy, assurance of energy supply security and affordability must be ensured.
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Successfully realized investment from within and outside the country for downstream mining products needs to be ensured in line with the strengthening of the domestic market.
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