Central Java Stakeholder Gathering 2022

Background

Since 2019, IESR and the Provincial Government of Central Java have continued to work together in the energy transition sector. There is a significant positive impact from the cooperation that has been carried out, in 2022, IESR and the Provincial Government of Central Java will renew their collaboration which is marked by the signing of a Joint Agreement on the Development of Renewable Energy for the Energy Transition. This is a form of multistakeholder institutional action to encourage Indonesia’s decarbonization system.

The contribution of religious parties, especially local governments, in supporting development that is oriented towards low carbon development and a green economy needs to be increased through various instruments, such as; policies and regulations, incentives, and some other supporting instruments to guarantee a just energy transition process. In addition, IESR also sees that regional policymakers and the general public have an important role in the smooth energy transition. Therefore, it is hoped that with the renewal and expansion of the scope of cooperation between IESR and the Provincial Government of Central Java, it is hoped that various policy stakeholders can work together in supporting the energy transition and regional decarbonization.

The expansion of the scope of cooperation as outlined in the joint agreement document (KSB) covers the energy, industrial and environmental sectors. The energy sector together with the Department of Energy and Mineral Resources (ESDM) on increasing the mix of renewable energy, especially solar energy. The industrial sector together with the Industry and Trade Service (Disperindag) to increase the implementation of renewable energy in the industrial sector. The environmental sector together with the Environment and Forestry Service (DLHK) reduces greenhouse gas emissions through the management of waste and waste into renewable energy. In addition, the expansion of the scope of cooperation also involves Regional Owned Enterprises (BUMD), and Central Java Petro Energi (JPEN) to accelerate the construction of PLTS in Central Java.

IESR work plans and programs with each Regional Apparatus Organization (OPD) of Central Java Province have been prepared and compiled in the 2022 KSB update. Several approaches and initial studies have been carried out and discussed together to obtain an up-to-date picture of the energy transition landscape in the regions to develop a plan of directed action and an equitable transition at the local level.

Considering the continuity and smoothness of plans and work programs on renewing cooperation between IESR and OPD of Central Java Province, it requires a strong commitment from various parties as a manifestation of the contribution of the role of local government in integrating energy transition issues into regional development plans. input, collaboration, and participation from various parties are widely open to push the energy transition agenda in the regions.

Therefore, IESR in collaboration with the Provincial Government of Central Java will carry out dialogue and public dissemination with related stakeholders under the title “Central Java Stakeholder Gathering 2022” to strengthen commitment, roles and joint responsibilities for implementing work plans and programs as well as a form of dissemination local government in encouraging community participation in the energy transition.

Objectives

  1. Presentation of the progress of the cooperation between IESR and OPD Central Java Provincial Government.
  2. Presentation of activity plans in collaboration with IESR and OPD Central Java Provincial Government in 2023.
  3. Dissemination of local government commitments and best practices on energy transition by various parties and stakeholders.

Significant Roles of Subnational Governments to Lead the Decentralization of Energy Transition

press release

Bali, 30 August 2022The post-pandemic economic recovery by staying focused on making ambitious climate mitigation efforts through low-carbon development is a step that needs to be taken by local governments. The success of low-carbon development is also inseparable from planning for a just energy transition. The commitment of various parties, including local governments and communities to promoting the energy transition, is crucial considering that decentralization of the energy transition will have multiple impacts.

The Governor of Central Java, Ganjar Pranowo, said that through the Central Java Energy and Mineral Resources Office, he was actively pushing for energy transition efforts in his region. Energy transition policy instruments such as governor’s circular letters, regional secretaries, and various initiatives such as the declaration of Central Java to become a solar province in 2019, are ways to attract the private sector and the public to utilize renewable energy through the adoption of rooftop solar. Until Q2 2022, the total installed PLTS capacity in Central Java Province reached 22 MWp. The Central Java Provincial Government also supports the use of other renewable energy that is abundantly available, such as livestock manure biogas and micro hydro power plant(MHP), with government programs or encouraging community collaboration.

“Asymmetric decentralization by inclusion with (treatment-red) specifically in every location. With collective awareness, the potential for renewable energy in the area is checked and stimulated,” said Ganjar. This, according to Ganjar, will encourage a faster transformation.

Central Java’s climate commitment is also shown by starting to use electric vehicles as provincial government official vehicles.

Togap Simangunsong, Expert Staff of the Minister of Home Affairs for Social Affairs and Inter-Institutional Relations, Ministry of Home Affairs appreciated the good practices carried out by the Central Java Provincial government. He said that his party and the Ministry of Energy and Mineral Resources are currently drafting a Presidential Regulation that strengthens the authority of regional/provincial governments in the administration of government affairs in the field of energy, mineral resources, and sub-sector of new and renewable energy.

“Through this, it is hoped that local governments can provide support in efforts to achieve the target of the new renewable energy mix as an effort to reduce greenhouse gas emissions so that local government commitments are made to accelerate energy justice following their authority,” said Togap representing the Minister of Home Affairs, Tito Karnavian in a webinar entitled “Energy Transitional Decentralization: Increasing the role of communities and local government” organized by the Institute for Essential Services Reform (IESR) and the Central Java Provincial Government.

In addition, Chrisnawan Anditya, Head of the Planning Bureau, Ministry of Energy and Mineral Resources said that the utilization of renewable energy potential will open up opportunities in building a green national economy and as an effort to recover the economy after the pandemic under the G20 Presidency’s theme, “Recover Together, Recover Stronger”.

“Each region has a special new renewable energy potential that can be used to improve the welfare of local communities. The difference in the potential for new and renewable energy between regions is a technical challenge, as well as a great opportunity for our energy system. This condition allows the sharing of energy based on new and renewable energy when the area experiences energy abundance or scarcity. For this to happen, an integrated electric power system (smart grid and super grid) is needed,” explained Chrisnawan on the same occasion.

Furthermore, strong leadership at the regional level will be able to mobilize the community to make the cooperation of energy transition. This was stated by Fabby Tumiwa, Executive Director of IESR. He said the initiative and leadership of the local government will be able to answer the problem of access and security of energy supply by utilizing the abundant renewable energy potential in the area.

“Indonesia’s energy transition requires the construction of hundreds or even thousands of gigawatts, renewable energy generation, transmission and distribution infrastructure and energy storage systems. But by starting to divide it into small units, the big problems can be more easily solved and carried out by more parties,” said Fabby.

He added, based on the IESR study, that the decarbonization of the energy system in Indonesia will cost USD 1.3 trillion by 2050, with an average investment requirement of USD 30-50 billion per year. This amount is 150%-200% of the current total investment in the entire energy sector.

“This investment need is costly and cannot be borne solely by the government and SOEs. But this large investment can be met if we take into account the potential of the contribution and innovation power of the community as well as the capabilities of local governments. Citizens’ contributions and innovations can mobilize funding from the government, local government and village governments, as well as funding from the private sector and non-governmental institutions,” he added.

Bali is the first province in Indonesia to have a special governor regulation for clean energy and electric vehicles. In the Governor’s Regulation on Bali Clean Energy, the Governor of Bali encourages the use of renewable energy for various sectors, especially rooftop solar power plants. This effort is carried out to realize the vision of low carbon development in Bali and concrete steps for sustainable tourism.

“Due to the pandemic, Bali’s tourism has stumbled, after the pandemic, Bali has started to rise. Several tips have been implemented, such as the governor’s regulations and circulars regarding the adoption of rooftop solar power plants. Actually, the main target is tourism, but first, do a pilot in the government,” said Ida Ayu, Expert Staff to the Governor of Bali.

The plans and steps for achieving renewable energy targets in the Regional Energy General Plan (RUED) are also carried out by the Jambi Provincial government. The Governor of Jambi, Al Haris, through the Deputy Governor of Jambi, Abdullah Sani, emphasized his commitment to work together with the central and private parties to develop regional energy transitions because the resources they have are very sufficient, only to use and transform natural resources into energy that can be enjoyed by the Jambi community in particular.

The Jambi Provincial Government through the Department of Energy and Mineral Resources has also collaborated with IESR for the implementation of RUED and energy conservation efforts within the local government. Currently, the Governor of Jambi is in the process of issuing a governor regulation for the use of PV mini-grid as a substitute for energy subsidies.

Central Java Provincial Government Boosts Utilization of Rooftop PLTS in Local Government Environments

JAKARTA – Located in the Equator area with the sun shining almost all year round, the utilization of solar energy in Indonesia is not very encouraging. Having solar energy potential of up to 3 – 20 GW, Indonesia has only utilized about 400 MW of solar energy based on land suitability. At the same time, the Government of Indonesia is racing against time to increase its renewable energy mix to achieve the target of 23% renewable energy in the national energy mix by 2025.

Several steps to fulfill the renewable energy mix target of 23% by 2025 have been carried out, such as Regulation No. 26 of 2021 concerning Rooftop Solar Power Plants (PLTS) issued by the Ministry of Energy and Mineral Resources (ESDM). This regulation emphasizes that rooftop solar power plants can be a strategy for increasing the national energy mix. Local governments have a strategic role in accelerating renewable energy by making strategic policies to develop renewable energy in their regions. As the first solar province in Indonesia, Central Java recorded a renewable energy mix of 13.38% in 2021. The Central Java provincial government also encourages the expansion of rooftop solar power plants (PLTS) within the local government as a commitment from the Central Java Solar Province initiative, cooperation between the Department of Energy and Mineral Resources Central Java and IESR.

In his remarks by the Director-General of Bina Bangda, Ministry of Home Affairs, Teguh Setyabudi, delivered by the Director of SUPD I, Ministry of Home Affairs, Edison Siagian, said regional development is part of national development. Specifically, regional energy transition policies are also the authority of local governments in setting standards and achievements targets. However, until now, the provincial government’s authority is still very limited, and the steps in developing renewable energy are also limited.

“The Central Java Provincial Government’s steps in continuing to develop programs and activities should be appreciated. Especially in the limited authority possessed by the provincial government, Central Java has involved elements of the regional secretary who have the function of coordinating, overseeing the implementation, and reducing the role of energy conservation across various OPDs to continue to innovate,” he said in the ‘Implementation of Rooftop Solar Power Plants in Local Government Environments’ on April 13, 2022, which was organized by the Ministry of Energy and Mineral Resources (ESDM) in collaboration with the Institute for Essential Services Reform (IESR).

Various resource persons were also presented to see how local government learning can participate in the implementation of renewable energy. Ir. Tedjo Prabowo, a representative of the Bappeda of the Central Java Provincial Government, revealed that the provincial government’s commitment had been stated in the 2018 to 2050 Regional Regulation RUED with a target of a new renewable energy mix 2025 is expected to reach 21.32%. “The challenge in achieving the EBT target is still the same, namely easier access to fossil energy. And as stated by the Ministry of Home Affairs, the regional authority in the administration of government affairs in the energy and mineral resources sector is still limited. However, the commitment to realizing energy sovereignty will continue to be supported by all sectors, including the Environment, Private and Community Services,” he said.

Marlistya Citraningrum, Manager of Access to Sustainable Energy at IESR, also said that through the RUED, a circular letter from the governor of Central Java and a circular letter from the regional secretary was issued to implement independently in the Regent’s office or DPRD for the development of PLTS in the social and productive sectors for green economic recovery. “Although there are challenges in the limited government budget, innovation is needed using various financing schemes such as leasing, ESCO, and third party financing (installment schemes). In line with this, the priority of development in their respective regions and the understanding of policymakers within the local government regarding rooftop solar power plants must be improved, “said Citra.

 

The use of solar energy mentioned by Citra regarding its application to rooftop PV mini-grid was also mentioned by Hevearita Rahayu, Deputy Mayor of Semarang. He has also started the first step as a commitment to new and renewable energy in the city of Semarang. “In 2019, through Bappeda, the Semarang City Government has conducted a study on the potential for RE development and became Perda No. 6 of 2022, which later became the vision of the RPJMD for 2021-2026. In 2020 there will also be a grant process from the Ministry of Energy and Mineral Resources, at which time we will also construct a new parking building to place 75kWp Solar PV. The result is savings in electricity bills of up to nearly 60 percent. The submission of grants by MEMR will also continue in 2021 to implement the RPJMN 2021-2026 priority program instructions. In the 2022 RPJMD, Semarang is currently compiling a feasibility study for solar panels to be built at city halls, offices, and schools. The target for 2023-2026 will be to carry out physical development in stages in all Semarang government offices,” he said.

 

The Head of the Central Java ESDM Office, Sujarwanto, also gave his opinion on energy policy and a joint commitment. “There needs to be enthusiasm to reduce the rate of CO2 emissions or build without excess carbon emissions. Central Java has had a commitment to the Regional Action Plan for Greenhouse Gas Control since five years ago. Therefore, government institutions must be examples of low carbon development. Together with a stronger commitment to the global, Indonesia is committed to the energy sector. Many districts/cities have budgeted for this program. This year there will be a budget refocusing. It is hoped that the regional budget will prioritize solar energy this year because the control of Covid-19 has improved. The Department of Energy and Mineral Resources is ready to provide assistance starting from choosing technology, managing energy in the office, and a consultation room with IESR,” he said.

Support for the application of rooftop solar power plants must continue as well as information on policies and implementation in Central Java Province will always be echoed. So that if all parties can collaborate well, then the implementation of the energy transition, which is the national development mandate, will be able to be implemented and benefit the people of Central Java. Furthermore, Central Java has contributed significantly to achieving the national renewable energy target.

Solar PV Answers Industrial and Commercial Needs to Provide Green Products

Semarang, October 06, 2021 – The Commercial and Industry sectors are potential partners to accelerate the penetration of renewable energy. The increasingly strong market demands for green products encourage the commercial and industrial sectors to switch to environmentally friendly technologies in order to maintain their existence in the global market. Solar PV is a strategic choice for the commercial and business sectors considering its relatively fast installation, as well as the availability of solar energy sources that are evenly distributed throughout Indonesia. In addition, investing in solar PV can reduce production costs.

Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR) explained that currently in line with efforts to reduce greenhouse gas (GHG) emissions, the industrial sector is faced with the obligation of the economic value of carbon. Especially for goods that are exported such as to European countries, America and Japan. The carbon footprint of a product that exceeds the specified maximum will be taxed. In addition, public awareness about sustainability issues is increasing, as stated by a survey by WWF and The Economist which found that searches on search engines with the keyword ‘sustainability’ increased by more than 71% during 2016-2020.

“Shareholders of companies have asked that all these companies commit to use 100% renewable energy. So if we want Central Java to become an industrial center, access to renewable energy must be facilitated,” said Fabby at a webinar organized by IESR with the Central Java Government entitled “Rooftop Solar Energy for the Commercial and Industrial Sector in Central Java” (6/10/2021).

In general, in terms of adoption, the number of rooftop solar PV users in Indonesia is increasing. Based on data from the Directorate General of EBTKE, until last August 2021, there were 4,133 rooftop solar PV customers in Indonesia, with a total installed capacity of 36.74 MWp. Judging from the capacity of rooftop PV by region, Central Java and DIY were ranked third with a rooftop solarcapacity of 5.83 MWp.

Chrisnawan Anditya, Director of Aneka EBT at the Ministry of Energy and Mineral Resources, explained that the government has given priority to the development of rooftop solar power plants considering its huge potential, fast installation, and very competitive prices.

“The medium-term strategy that is being pushed for the development of PV is rooftop solar which is targeted at 3.6 GW by 2025. In addition, we also continue to encourage utility-scale PV,” explained Chrisnawan on the same occasion.

To support infrastructure and services towards the energy transition, PLN must also improve on preparing grid adaptations and adapting to a business model that accommodates large amounts of renewable energy.

“This rooftop PV has an impact on the current PLN grid due to its intermittent nature. So PLN must provide a standby unit to supply electricity when the power generated by the PV rooftop cannot meet the existing electricity needs,” explained M. Irwansyah Putra, General Manager PLN Central Java – DIY.

Irwan also explained that in supporting the carbon tax mechanism, PLN has issued an REC (Renewable Energy Certificate). By purchasing this certificate, PLN will distribute electricity obtained from clean energy to the industry.

Questioning policies to encourage renewable energy in Central Java Province, the Head of the Central Java Province ESDM Office said that his party had prepared various policies. However, according to him, to encourage certain changes, in this case the transition from fossil energy to renewable energy (Solar PV-ed), policy support alone is not enough.

“Change will happen more quickly if it is driven by a market driven mechanism, so it’s not just complying with certain rules. The Central Java ESDM Office has tried to make policy packages that cover this market aspect with input from various parties such as the government, universities, and NGOs,” explained Sujarwanto.

The Central Java Regional Government also provides assistance to the commercial and industrial sectors in Central Java which are transitioning to green industries. “There are several steps taken to implement the green industry, i.e. training, facilitating certification for the green industry as well as awarding the green industry. Several companies in Central Java received this award,” explained M. Arif Sambodo, Head of the Industry and Trade Office of Central Java Province.

Opportunities for the commercial and industrial sectors to adopt solar PV are getting wider with the availability of various Solar PV investment schemes such as installments and leases. Anggita Pradipta, Head of Marketing for SUN Energy, said that there are three schemes offered by SUN Energy for prospective rooftop solar PV customers, namely Solar purchase, Performance Based Rental, and Solar Leasing.

“For the commercial and industrial sectors who want to install solar panels but are constrained by the initial installation cost, we recommend taking a performance based rental scheme. With this scheme, the customer will be bound by a contract for 15-25 years, where all the costs of maintaining the solar PV unit will be borne by SUN Energy, after the contract ends, the assets will become the property of the customer,” explained Anggi.