RFP – Economic and Development Assessment in Coal – Producing Region (Lahat)

Institute for Essential Services Reform (IESR) is a think-tank in the field of energy and environment. IESR encourages transformation into a low-carbon energy system by advocating a public policy that rests on data-driven and scientific studies, conducting capacity development assistance, and establishing strategic partnerships with non-governmental actors. As part of IESR effort to increase public and government awareness and carry out studies to the decision maker, currently, IESR is conducting social and economic research in the coal region in Indonesia. This study aims to provide recommendations to the government on other potential economic sectors besides coal and natural resources in order to create new green employment.

In order to have a comprehensive analysis of the economic sector, IESR sees the opportunity to develop other sectors that support low-carbon economic growth at the sub-national level. The implication of global coal decline is predicted to impact the economic system, not only at the local but also at the provincial level. Determining potential sectors to be developed needs accurate calculation and analysis to decide which one suits the most with the local characteristics and government plans. Thus, IESR needs a comprehensive assessment of the effect of energy transition on the local economy and the opportunity presented particularly in promoting renewable energy development and circular economy.

Proposals will be accepted until 24:00 Indonesian Western Standard Time (WIB, GMT+07) on Wednesday,  27 September 2023. Any proposal received after the deadline will be regarded as inadmissible. Please kindly send the proposal to Program Manager Sustainable Energy Access IESR, Marlistya Citraningrum, at citra@iesr.or.id and cc: rizqi@iesr.or.id for inquiries and submissions.  Please include “RFP Response – Economic and Development Assessment (Lahat)” in the email subject.

 

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RFP-Economic-and-Development-Assessment-in-Lahat-Sept-2023

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Energy Transition in the Midst of Coal Mining Siege

Samarinda, 7 September 2023 – The energy transition is an unavoidable inevitability. Current world trends show that the earth is getting hotter and to limit the rise in earth’s temperature, structured solutions are needed, including the energy transition, which involves various sectors and multi-stakeholders.

Society and communities are one of the key actors in the energy transition who can initiate the development of renewable energy to answer their energy needs. 

The Institute for Essential Services Reform (IESR) in collaboration with the Clean Affordable and Secure Energy for Southeast Asia (CASE) project and the Department of Energy and Mineral Resources (ESDM) of East Kalimantan Province held the ‘Jelajah Energi Kaltim’ activity to see directly and closer to the development of various initiatives for using renewable energy in East Kalimantan Province.

This series of activity began with a workshop, followed by visits to a number of places. On the first day of the visit, the group saw PV installation at the Pertamina Hulu Mahakam office, TPAS Manggar, and Kariangau Coal plants in Teluk Balikpapan.

The “Jelajah Energi Kaltim” trip continued on the second day starting with a visit to Mulawarman Village to see how the community uses livestock manure to make biogas. The biogas in Mulawarman village is home-sized biogas digester aid from the East Kalimantan Province Energy and Mineral Resources Service.

Mulawarman Village is in Tenggarong Seberang District, Kutai Kertanegara Regency, East Kalimantan. Coal mines surround Mulawarman Village. This condition made the residents of Mulawarman village ask to be relocated.

The East Kalimantan Regional Government is starting to pay attention to Mulawarman village to help the economy of Mulawarman village residents, one of which is by developing livestock groups and providing assistance with biogas installations.

In 2021, the East Kalimantan ESDM Service provided biogas installation assistance to stock farmer group (which had been surveyed) in the village, totaling 20 farmers. This means that people do not have to pay monthly fees for using this biogas.

People who use biogas immediately feel positive impacts, such as savings in costs for cooking fuel. Zaenal Abidin, a resident of Mulawarman Village, who is also a beneficiary of the biogas installation assistance, said that previously, to meet their cooking needs, their family could use up to 4 pieces of 3 kg LPG in one month. Now, he can cut his LPG needs to just 1 piece of 3 kg LPG.

“For everyday cooking (biogas, ed.) is enough. But if there are social events such as recitations, we still have to use LPG gas,” said Zaenal Abidin.

Zaenal also added that the cooking process using biogas fuel takes a little longer than using LPG. This biogas installation assistance is also accompanied by the transfer of knowledge about technology to the stock farmers. So that they can detect technical obstacles that could potentially arise from using this home biogas installation.

The Group continued their journey to Menamang Kanan Village, Muara Kaman District, Kutai Kartanegara Regency. The journey to Menamang Kanan Village takes almost 3 hours with heavy dusty road conditions which result in very limited visibility.

In the past year, residents of Menamang Kanan Village have succeeded in enjoying electricity from a centralized PV installation assisted by the East Kalimantan Energy and Mineral Office with a capacity of 87 kWp. This solar PV supplies basic electricity needs for 600 families in Menamang Kanan Village.

Previously, the residents of Menamang Kanan Village depended on the electricity supply from the diesel generator provided by one of the company’s CSR programs operating around the village. For the operation of this diesel generator, 70 liters of fuel is needed every day to provide electricity for 4 hours.

Zapir, Village Secretary of Menamang Kanan, explained that although electricity from solar PV has increased access to electricity in Menamang Kanan Village, its utilization is still limited to lighting and basic electronic equipment.

“So, it’s just for lighting, and maximumly a fan. It’s still not possible for TVs or refrigerators,” said Zapir.

Zapir hopes that the capacity of this communal solar PV can be increased in the future so that village residents can use electricity for productive activities that have the potential to bring economic value. Not limited to just lighting.

New Hope in Menamang Kanan

Samarinda, 7 September 2023 – Menamang Kanan Village is located in Muara Kaman District, Kutai Kartanegara Regency. It takes around 4 hours to travel from the city of Samarinda via road to reach this village. Until 2022, the people of Menamang Kanan rely on diesel generators from a company’s CSR (Corporate Social Responsibilities) program to fulfill their access to electricity. Diesel will light up and be a source of lighting for residents for 4 hours every day.

The hope of having longer and better quality access to electricity is slowly starting to come to light in 2022. Through the East Kalimantan Regional Revenue and Expenditure Budget (APBD), Menamang Kanan village received centralized solar PV installation of 87 kWp. Electricity from this PV is distributed to 600 families.

Even though we already have other energy sources, unfortunately the quality of electricity produced is only sufficient for lighting and basic electronics.

“Because we only produce 700 watts/day and it has to be used communally, so it can only be used for lights and fans at most, It can’t be used for TV or cooking rice, let alone the refrigerator,” explained Zapir, Menamang Kanan Village Secretary.

Zapir added that the people of Menamang Kanan hope to increase the electricity capacity they receive so that people can use electricity for other, more productive activities. Not limited to lighting.

The Institute for Essential Services Reform (IESR) believes that the quality of electricity received by society needs to improve because if the electricity they receive is of low quality, society will not be able to carry out productive activities that can improve the economy. Decentralized power plants such as solar PV need to increase massively to supply electricity in rural areas.

Regional governments can utilize their authority in developing renewable energy as regulated in Presidential Decree Number 11 of 2023, in order to improve the quality of people’s access to electricity.

“This additional authority certainly needs to be followed by local government initiatives to design programs that also address the need to provide energy access, especially with local renewable energy. This principle of energy decentralization enables independent energy efforts with the involvement of many parties and is expected to improve community welfare with sustainable energy access,” explained Marlistya Citraningrum, Sustainable Energy Access Program Manager, Institute for Essential Services Reform (IESR) in the webinar “Energy Transition in Equity National Electrification”.

Decentralization of energy by utilizing renewable energy sources will open up opportunities for wider and participatory exploration of utilization so as to facilitate access to electricity and increase the reliability of its quality.

Renewable Energy Becomes Attraction for Investors

Semarang, 4 July 2023 – Electricity is not only the essential need for households, but also drives economic activity to a large industrial scale. In addition to the need for a reliable electricity supply, large-scale industries are starting to pay attention to the source of the electricity supply. In fact, for export-oriented industries, the production process needs to be carried out with minimal emissions in advance since the implementation of carbon footprint calculations on products exported to certain countries. This means that goods or components of goods produced n from fossil energy generation will receive a higher carbon tax.

Central Java Province, which is currently developing a number of regional industries, pays close attention to the development of alternative energy sources other than fossils. This was said by the Deputy Governor of Central Java, Taj Yasin Maimoen, in his remarks at the Central Java Renewable Energy Investment Forum 2023 which was organized by the Institute for Essential Services Reform (IESR) in collaboration with the Central Java Energy and Mineral Resources Provincial Office, Tuesday 4 July 2023.

“The growth of industrial infrastructure is accompanied by high growth in energy needs. Currently it is not just energy, but energy that comes from new, renewable energy,” said Taj Yasin.

Taj Yasin added that Central Java has abundant potential for renewable energy, but its utilization has not been optimal. To drive the use of renewable energy, the Provincial Government of Central Java is promoting the installation of PV rooftops on government buildings.

“From the installation of rooftop PV in government buildings, it shows that there are 30-40% savings on electricity bills for the institutions that install them,” he said.

Previously, the Executive Director of IESR, Fabby Tumiwa, said that the availability of electricity from clean energy is the main attraction for investors to invest in one country.

“If we want to increase investment competitiveness, we must increase the availability of green energy. The supply of electricity from renewable energy is a new indicator for investors to invest their capital,” said Fabby.

Sakina Rosellasari, Head of the Central Java Investment and One-Stop Service Office (DPMPTSP), stated that Central Java is currently designing 23 projects to be offered to investors. Part of the project is related to the development of renewable energy.

“Investment interest is already approaching pre-pandemic times. We hope this meeting will improve communication and encourage investment realization in Central Java,” she said.

This trend is in line with the Indonesian Low Carbon Development study, that efforts to reduce GHG emissions must be carried out in an integrated manner in development plans to push Indonesia out of the middle-income country trap by ensuring economic growth of 5%.

Introducing Rooftop PV and Its Related Aspects to Students of SMK Negeri 7 Semarang

Semarang, 6 June 2023 – The Energy and Mineral Resources Office of Central Java Province is holding technical training on the construction and installation of rooftop solar PV in order to increase human capital in the electricity sector, new and renewable energy, energy conservation, especially for PV installations. The rooftop PV training was attended by 30 representatives of the third grade students from the Electrical Engineering major, SMK Negeri 7 Semarang.

The Head of SMK Negeri 7 Semarang, Haris Wahyudi, warmly welcomed this initiative and believed that the training was the right skill for his students.

“This training is a contextual skill to equip our students, whether they are going to do internships or join the labor forces. This competence is very necessary and very appropriate, we are grateful and grateful for being given the opportunity and having this activity at SMK Negeri 7 Semarang,” he said.

Haris hoped that this training could be motivating and useful, so that in the future there would be high opportunities for rooftop PV – related jobs to be filled by one of his students with good skills and provisions.

This rooftop PV training activity is one of the efforts made by the Provincial Government of Central Java through the ESDM Office to increase the knowledge and skills of the younger generation, so that they are able to take part in facing the energy transition.

Boedyo Dharmawan, Plt. Head of the Energy and Mineral Resources Office of Central Java Province in his remarks said that Central Java has abundant potential for new and renewable energy (NRE), many NRE practices have been built and utilized by the people of Central Java. He hopes that the younger generations will be able to understand and be ready to face the changes in the energy transition that will continue to occur in the future.

“Thirty-five districts/cities in Central Java Province have a lot of PV energy potential, and in the future, we will gradually abandon fossil energy because its availability continues to decrease, this is inevitable, we need to be prepared and ready to face it,” he said.

“Hopefully with this PV rooftop training, youths can build and take good care of PV management. Because if we only continue to encourage and massive development of solar energy, but the maintenance and maintenance is lacking, in the future this can become an opportunity and job opportunities for younger siblings in the future,” he continued.

In addition, Dharmawan also hopes that NRE programs can be supported by all parties, including the educational communities in Central Java Province.

“We really hope that the Education and Culture Office will encourage renewable energy development programs, so that State Vocational High School students in Central Java are ready to face energy transition,” he added.

Rizqi M Prasetyo, regional program officer of, Sustainable Energy Access, Institute for Essential Services Reform (IESR) participated as one of the speakers in the rooftop PV technical training, with the theme “The Green Superheroes: Solar Team is Saving the Planet!”. The presentation of the material began with a quiz on future PV – related job opportunities, which was enthusiastically followed by the participants.

“The material presented is clear, the delivery method is more exciting, so we don’t get bored listening, it combined with quizzes via cell phones, so the material is easy to understand, because the delivery method is so good,” said Aditya Arya Permata, one of the students.

Rizqi also gave descriptions of current and future climate conditions and employment opportunities. It is hoped that the training participants will be literate and have a high awareness that the development of renewable energy, especially solar energy, can open new jobs that are environmentally friendly.

“We hope that the solar PV training at this school can encourage and motivate the younger generation to become a generation that is environmentally conscious and understands the importance of the energy transition, so that in the future they will be able to contribute, innovate, and lead the process of transforming into a low-carbon economy through solar energy,” said Rizqi.

Apart from IESR, training materials were also delivered by the Energy and Mineral Resources Office of Central Java Province and PPSDM EBTKE. This training takes place from 6 – 9 June 2023 with materials covering Rooftop PV Policy and Development in Central Java, PV Regulations and Safety Procedures, PV Systems and Components and ends with the practice of installing rooftop PV.

Understanding the Context of Just Transition in Coal Region

Jakarta, 10 May 2023 – the global effort to move away from fossil-based power resources will lead to a transition away from coal. This transition not only brings a drastic change to coal production, but also the livelihoods and economic activity in the coal producing regions. 

Srestha Banerjee, director of the Just Transition program iForest India, during the webinar called “The Just Transition Toolbox for Coal Regions — Knowledge needs in the South-East-Asian context” emphasized that the transition issue is more of a political issue rather than a technical one. 

“India has appointed a task force to design a people centric solution for coal transition. Besides digging up community needs through dialogue and discussion, we need an example of good transition practices to boost people’s confidence,” Srestha explained.

Indonesia, the biggest coal exporter, experiences uncertainties in the coal transition supporting the just energy transition agenda. As the global price of coal soared last year, Indonesia faced a dilemma of whether to reduce coal production or stay in business as usual. 

Marlistya Citraningrum, program manager of Sustainable Energy Access, Institute for Essential Services Reform said that since last year, the Indonesian government has started to rely more on renewable energy in the PLN electricity planning, yet the implementation still faces challenges.

“Leaving coal altogether is seen as a much more difficult option as it directly impacts the economic situation and income of the region,” she said.

Citra, as she has always been called, added that during the planning phase, the government needs to understand the context of the transitions and its impact on the social economic aspect. Active listening is necessary to gain a more comprehensive understanding. 

Chalie Charoenlarpnopparut, associate professor, Sirindhorn International Institute of Technology, Thammasat University Thailand agreed that dialogue will be the key to bridging the gap between the needs to reach the emission reduction target and the social economic impact of leaving coal.

“We need to tell the communities that the disruption is going to happen no matter what, and we need to be prepared or else we will experience the more negative impact of the coal transition,” Charlie said.

Realizing that energy transition and coal transition in particular is a technically heavy and technocratic issue, gender mainstreaming during the process becomes more noteworthy. Chalie added that in Thailand, women’s involvement in the transition has started to be seen.

“Women have more of a sense of sustainability, so they are more eager to be involved during some action. While men are more involved in the research and academic side of the transition,” he said.

Inspiring the Youth: CASE Indonesia Teaches the Importance of Energy Transition in Sekolah Bogor Raya

Bogor, 4 April 2023 – Project Clean, Affordable and Secure Energy for Southeast Asia (CASE) together with Sekolah Bogor Raya kicked off the long-awaited Teaching for the Future (T4F) Program which focuses on the importance of energy transition as a subject in formal education.

CASE Teaching for the Future Program visited Sekolah Bogor Raya as we launched the T4F program, after our great and inspiring experience Sekolah Santa Ursula BSD in 2022. This year, T4F has a completely different agenda, as the students from grades 7, 8 and 11, totaling 150 participants, were involved in active learning, with 15 mentors facilitating, to increase the understanding and challenge them to find solutions towards problems faced by Indonesia in transitioning to clean energy. 

There were 5 different topics facilitated by the mentors, including sustainable energy access, energy efficiency, just energy transition, sustainable transportation and sustainable agriculture. By the end of the session, all students were given a task to create a campaign/project proposal on each specific topic. These ideas/proposals will be presented by the students on 14th April 2023 during Sekolah Bogor Raya Earth Day’s Exhibition.

Dominic, one of the participants of the program mentioned, “One thing that I learned from the session is about the drought in Danau Toba. I critically think of how the drought impacted the communities, especially in acquiring clean water. Education like this is very important for us, to raise awareness and improve our understanding about sustainable energy.”

Agus Tampubolon, CASE Indonesia Project Manager, emphasized the importance of energy transition as a subject in formal education. 

“Education about climate change and clean energy should be informed to the younger generations, as they are the ones who will make energy transition in Indonesia succeed in the future,” said Agus.

Aditya Rao, the Curriculum Coordinator of Sekolah Bogor Raya, told us that most subjects taught in SBR are integrated with the principles of Sustainable Development Goals (SDGs), and since elementary school, the students have already learned about climate change and energy transition. He further mentioned that through this project, SBR hopes its students will be able to understand the theoretical cases of energy transition and climate change in Indonesia in a more practical way and could be inspired to find solutions. 

Note: CASE for Southeast Asia is a collaboration project between the Institute of Essential Services Reform (IESR), GIZ Indonesia and the Ministry of Development Planning (Bappenas) with a mandate of shifting the narrative of energy transition in Indonesia that focuses on decarbonization on the power sector, upscaling renewable energy and energy efficiency, achieving just energy transition and sustainable finance.