Jakarta, September 13, 2023 – The Indonesia Clean Energy Forum (ICEF) and the Institute for Essential Services Reform (IESR), in collaboration with the Ministry of Energy and Mineral Resources (ESDM), are once again organizing the Indonesia Energy Transition Dialogue (IETD) 2023 from September 18th to 20th, 2023, with the theme “Empowering the Acceleration of the Transformation of the Electricity Sector in Indonesia.” Both ICEF and IESR agree that the energy transition in Indonesia is inevitable, considering Indonesia’s commitment to contribute globally to emissions reduction through the ratification of the Paris Agreement under Law No. 16/2016.
Fabby Tumiwa, Executive Director of ICEF and IESR, stated during the Media Briefing on “Preparing for Indonesia’s Energy Transition and Anticipating Its Implications, and the Launch of the Indonesia Energy Transition Dialogue (IETD) 2023″, that the theme of IETD 2023 focuses on the electricity sector, which is a strategic sector for transitioning towards renewable energy. He mentioned that the energy transition in the electricity sector is currently supported by technology availability, international funding potential such as the Just Energy Transition Partnership (JETP), and supportive policy frameworks such as Presidential Regulation No. 112/2022.
He emphasized that the energy transition is a complex process with significant implications, requiring multi-stakeholder dialogue to anticipate and mitigate its impact in Indonesia, one of which is through the organization of IETD 2023.
“The Indonesian government is currently reviewing comprehensive planning documents and investment policies from the Just Energy Transition Partnership (JETP), which include several agreed-upon targets, such as a peak electricity emission of 290 million tons of CO2 and a 34% renewable energy mix by 2030, as well as achieving net-zero carbon emissions (NZE) in the electricity sector by 2050. Therefore, we need to ensure that all these plans and targets are achieved through a fair process with the support of all stakeholders,” explained Fabby Tumiwa.
Gigih Udi Atmo, Director of Conservation at the Directorate General of Renewable Energy and Energy Conversion (EBTKE), Ministry of Energy and Mineral Resources (ESDM), highlighted one of the efforts in energy transition, which is the development of renewable energy. According to him, the integration of renewable energy requires an expanded grid network to accommodate renewable energy sources.
“Connectivity through grid expansion that links load centers with renewable energy sources will be crucial in the future. The most feasible step in the near term is the interconnection between Sumatra and Java to enable the evacuation of solar, hydro, and geothermal-based renewable energy from Sumatra to supply the demand in Java. This way, power exchange and energy balance between the two largest grids in Indonesia can be optimized,” stated Gigih.
Gigih added that to achieve the net-zero carbon emissions (NZE) target, international support can accelerate the closure of coal-fired power plants. The type of international support, such as grant financing or soft loans, will determine the process of early cessation of coal-fired power plant operations by utilizing affordable financing to accelerate the investment recovery, allowing coal-fired power plant assets to cease operations earlier without violating existing cooperation agreements.
Deon Arinaldo, Energy Transformation Program Manager at IESR, mentioned that the government’s energy transition plans and strategies need to be supported and critiqued to expedite the process and make it smoother with better strategies and programs. Moreover, decarbonizing the electricity sector will serve as a driver for decarbonization in other sectors.
“In the energy transition process, it is also crucial to provide space for all actors to contribute meaningfully to the development of renewable energy. This means not only large industries but also local governments, small and medium-sized businesses, and communities need to play a role. In this regard, the strategy for ensuring access to renewable energy also deserves attention and should be part of a just transition,” Deon explained.
During the Media Discussion Forum on Indonesia’s Energy Transition, IESR and ICEF also announced the launch of the 6th Indonesia Energy Transition Dialogue (IETD), which will be held from September 18th to 20th. This event serves as a vital platform for discussing, sharing ideas, and generating real solutions to support the energy transition in Indonesia. IETD 2023 will bring together stakeholders, including the government, private sector, academia, and the general public, to discuss the challenges and opportunities in transitioning to cleaner and more sustainable energy.
