Semarang, July 4, 2023 – Recognizing that renewable energy investments play a crucial role in addressing climate change and achieving the Paris Agreement, the Institute for Essential Services Reform (IESR), in collaboration with the Government of Central Java Province, held the ‘Central Java Renewable Energy Investment Forum 2023’ event. This activity is a platform to promote the potential of renewable energy investments in Central Java to achieve the target of a 21.82% renewable energy mix in Central Java Province by 2025. Exceeding the target with a renewable energy mix of 15.76% in 2022 has encouraged the Government of Central Java Province to proactively open doors for renewable energy investments to achieve the set targets and maintain regional economic competitiveness.
Fabby Tumiwa, Executive Director of IESR, explained that Central Java has abundant potential for renewable energy, particularly solar energy. According to IESR’s study, if 9 million residential buildings install rooftop solar power systems, it could generate 100,000 megawatts (MW). Additionally, if the 35 regent and mayor offices throughout Central Java install rooftop solar power systems, it would generate around 5 megawatts (MW) of solar energy. Fabby emphasized that the renewable energy potential in Central Java, including wind power plants, micro-hydro power plants, biomass power plants, and geothermal power plants outside of Central Java, reaches 198 megawatts (MW).
“The availability of renewable energy is now a key factor in attracting investments. Therefore, if we want to enhance investment competitiveness in Central Java, it is necessary to increase the availability of green energy supply. This becomes a new indicator for investors. The vast potential of renewable energy sources cannot be realized without funding for their development,” explained Fabby Tumiwa.
Vice Governor of Central Java Province, Taj Yasin Maimoen, explained that Central Java has abundant solar energy potential that is yet to be fully utilized. Therefore, the use of solar power plants needs to be accelerated. Since 2019, the Provincial Government of Central Java, through the Department of Energy and Mineral Resources, has installed solar power plants in every regional organization office, including the Central Java Regional Council and several educational institutions. The use of solar power plants is aimed at reducing carbon emissions and has economic benefits, such as reducing electricity expenses by around 30-40%.
“Central Java has competitive potential, including infrastructure support, workforce, and a strong commitment to investment. The renewable energy sector presents a new investment opportunity in Central Java, considering the growing needs of the manufacturing ecosystem, which requires alternative energy sources to meet its production. This potential needs to be managed together,” said Taj Yasin.
Sakina Rosellasari, Head of the Investment and Integrated One-Stop Service Agency (DPMPTSP) of Central Java Province, stated that Central Java has a general investment plan, to promote environmentally conscious investment policies (green investment). According to DPMPTSP records, there are 690 permits for self-supply electricity providers (IUPTLS), and the number of rooftop and steam IUPTLS is approximately 17 as of June 2023.
“There are several projects ready to be offered in the renewable energy sector in Central Java, including the development of mini hydropower plants in Banjaran and Logawa, Banyumas Regency, the construction of floating solar power plants in Wadaslintang Reservoir, the development of geothermal power plants in Candi Umbul Telomoyo and Baturaden, Banyumas Regency. Realizing investments in Central Java is expected to increase community income and provide employment opportunities,” stated Sakina.
Cahyo Purnomo, Director of Promotion for East Asia, South Asia, the Middle East, and Africa at the Ministry of Investment/BKPM, stated that the energy transition process cannot happen overnight; it requires time and commitment. The development of renewable energy is one of the efforts toward a low-carbon economy, and so creating a conducive investment climate is necessary.
“For example, in formulating regulations, predictability is essential for investors. We encourage direct investment based on a long-term perspective, not just for 1-2 years. Therefore, it is important to have a stable investment climate, and the formulation of regulations should involve all stakeholders; there should be no mere spectators,” said Cahyo.
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