Magnifying the Ambitious Climate Action from Business Sector

Direktur Eksekutif IESR

Jakarta, November 30, 2022 –  The Indonesian government needs to show strong attention to climate mitigation efforts by increasing commitment and may significantly reduce greenhouse gas emissions. The Executive Director of the Institute for Essential Services Reform (IESR), Fabby Tumiwa, stated that rising global temperatures are worsening the climate crisis. He conveyed his speech at the Astra Green Energy Summit 2022 with the theme “Real of Action on the Energy Transition Journey Towards a Sustainable Environment.”

“Since the United Nations Framework on Climate Change Conference (UNFCCC) document was agreed upon in 1992, most countries ratified its documents in 1994. Thus, all climate change negotiations are directed at preventing the earth’s global surface temperature increase,” said Fabby Tumiwa.

Quoting Climate Action Tracker 2022 data, said Fabby, Indonesia’s climate policies in the energy sector are deemed insufficient to withstand the increase in the average global temperature below 1.5°C as agreed at the COP 26 Summit in Glasgow in 2021. For this reason, Fabby argues that global greenhouse gas (GHG) emissions must peak in 2030 and then decline if Indonesia wants to prevent a rising temperature above 2°C, which has far-reaching implications.

“This means ambitious action is needed, especially for G20 states responsible for global greenhouse gas emissions (GHG). Reducing GHG emissions must also be carried out by economic actors. If it is only the government’s responsibility for its reduction, I think it will be difficult,” explained Fabby Tumiwa.

Fabby explained that the decarbonization process needs to be carried out comprehensively because it is related to Indonesia’s energy supply structure. Indonesia’s primary energy supply for electricity generation is mainly based on fossil fuel. The increase in fuel consumption was also relatively high, marked by the rise in motorized vehicles.

“Since the last ten years, Indonesia has replaced fossil fuels with biofuels. Until 2021, the proportion of fuel substituted for biofuels has reached 14%. Thus, the use of low-carbon fuels needs to be increased to 40-60% in 2040. This means we need to encourage the use of synthetic fuels other than biofuels,” said Fabby Tumiwa.

Energy and Mineral Resources Minister, Arifin Tasrif, said business entities are expected to be involved in accelerating the energy transition. For example, they apply energy efficiency throughout the business chain and develop technological innovations and clean industries. They are also expected to mitigate the impact of the energy transition in the business sector and supply chain.

“To overcome the obstacles to the energy transition, synergy between stakeholders, the government, the media, NGOs, and the private sector is needed to achieve zero emissions,” said Arifin.

Critical Review on the Biofuel Development Policy in Indonesia

Progress and developments related to biofuels in Indonesia are specifically studied by the Institute for Essential Services Reform (IESR) through a report entitled Critical Review on the Biofuel Development Policy in Indonesia. This study itself is intended to review the current development of Indonesia’s biofuel policy and its implications from an economic, social and environmental perspective. This report is also expected to provide input and recommendations, especially to policymakers, in order to ensure the direction of biofuel policy development by taking into account the aspects of sustainability and minimizing problems that may arise.

Therefore, IESR organized this activity in order to launch the study and convey and discuss the findings and recommendations of the study to policymakers and related stakeholders.

Get information about:

An overview of the development of biofuels in Indonesia and their role in the energy transition
Results and recommendations from the studies conducted; and Information, views, and input from various policy and decision-makers, as well as other stakeholders related to the development of biofuels in Indonesia and its relation to the energy transition


Presentation of Findings and Study Recommendations

Critical Review on the Biofuel Development Policy in Indonesia

Julius Christian A, IESR Clean Fuels Researcher and report author

Panel discussion
  • Andriah Feby Misna, Director of Bioenergy, Ministry of Energy and Mineral Resources
  • Djoko Siswanto, Secretary General of the National Energy Council
  • Tatang Hernas Soerawidjaja, Chairman of the Indonesian Bioenergy Expert Association
  • Tommy Pratama, Executive Director of Traction Energy Asia