Between Low Renewable Energy Target and High Economic Growth Ambitions

Jakarta, 20 February 2024 – Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR) assesses the steps taken by the National Energy Council (DEN) to adjust the renewable energy mix target in the Draft of Government Regulation on National Energy Policy (RPP KEN)  from the original 23 percent to 17-19 percent 2030 is a backward step because it is not in line with the stated goal of reducing emissions and achieving Indonesia’s net-zero emissions target by 2060 or sooner.

Fabby also highlighted the energy transition agenda carried by each pair of presidential candidates in the 2024 election, which includes a number of renewable energy mix targets until 2030 in an interview with the Squawk Box program.

According to him, each candidate has an energy transition agenda, one of which is the desire to pursue the same renewable energy mix target as the current National Energy Policy, ranging from 27-30 percent by 2030. Apart from that, each candidate also has a commitment to limit the operation of coal power plants.

“For candidate number 02, what is clearly visible is the increase in the use of biofuel to replace or reduce fuel subsidies as stated during the campaign,” said Fabby. They (presidential and vice-presidential candidates’ number two) are targeting a biofuel blend percentage of 50 percent by 2029, as well as ethanol utilization of 10-20 percent.

Furthermore, Fabby emphasized that for the electricity sector, the aim of ending coal plant operations early must be accompanied by adding a larger portion of renewable energy. Apart from replacing the electrical power that was initially supplied by coal-fired power plants, renewable energy generation must also meet the projected electricity growth needs in the future. Moreover, Indonesia has the ambition to pursue economic growth of up to, for example, 6-7 percent, so electricity demand is projected to grow even greater.

“Based on IESR’s calculations, to achieve these various targets, the renewable energy mix in 2030 must reach 40 percent, this is somewhat different from the target adjustments made by DEN currently,” explained Fabby.

Fabby added that the new government’s homework related to the energy sector will be to accelerate the development of renewable energy, especially in the electricity and liquid fuel sub-sectors.

Mangroves for the Community

Cirebon, 26 January 2024 – South Kesunean is one of the coastal areas in the Kasepuhan Village area, Lemahwungkuk District, Cirebon City. Located on the coast, the South Kesunean area experiences threats in the form of abrasion or tidal flooding. Realizing this, people of Kesunean Selatan started planting mangroves to prevent this abrasion.

The need to maintain mangroves is not running smoothly considering that some of the local people have a habit of piling up rubbish and turning it into waste land. Emerging land is a phenomenon where residents deliberately collect rubbish, then pile it up on the coast until it becomes solid and forms new land to be used as a residential area.

Considering its location on the coast, a number of residents who are members of the RW 09 Kesunean Selatan mangrove Working Group (Pokja) have made various efforts, including educating local residents not to pile up rubbish and make land emerge again in the area around the mangrove forest. Even though public awareness is starting to awaken to no longer hoarding rubbish, there are still people who cut down mangrove trees for firewood, and step on small mangrove trees when going to sea.

Pepep Nurhadi, Chair of RW 09 South Kesunean and administrator of the Kesunean Mangrove Working Group, hopes that the South Kesunean mangrove forest can survive and even develop further.

“We hope that this mangrove can develop into a kind of ecotourism site so that the surrounding community can directly benefit socio-economically,” said Pepep.

For this reason, the South Kesunean Mangrove Working Group is open to collaboration and assistance from various parties. Since 2023, the Institute for Essential Services Reform (IESR) through the Generasi Energi Bersih (GEB) community has carried out collaborative observations and assessments that can be carried out with the residents of South Kesunean.

After discussions with the local community, several things were identified, namely planting mangrove seedlings and caring for them, making a mangrove track (a kind of bridge) so that fishermen going to sea no longer step on mangrove seedlings, as well as increasing the capacity of local residents through training in ecoprint batik with dyes, mainly natural mangroves resourced.

To invite the involvement of more people, the Generasi Energi Bersih community is opening donations for the development of the South Kesunean mangrove area to become an ecotourism area via the following page.

Half-hearted Indonesian Climate Policy and Action

Jakarta, 30 January 2024 – The World Meteorological Organization (WMO) has declared 2023 as the hottest year. Historical records show that the earth’s temperature continues to increase from year to year. To keep the earth’s temperature rise to no more than 1.5 degrees, experts have recommended ensuring the world reaches peak global emissions in 2030 and must fall in the following years.

The use of fossil energy is one of the largest contributors to emissions in the world. Executive Director of the Institute for Essential Services Reform (IESR), Fabby Tumiwa, said that Indonesia needs measurable and real action for transitioning away from fossil energy.

“Based on the Climate Action Tracker (CAT) assessment, Indonesia has not shown a reduction in emissions, in fact it will experience an increase in emissions in 2022 and one of the causes is an increase in coal consumption used for down streaming. Indonesia’s rating even dropped from ‘highly insufficient’ to ‘critically insufficient’. The most important thing is real steps to accelerate the transition in this decade,” emphasized Fabby.

Indonesia, as one of the top 10 emitting countries in the world, actually received a bad record with Indonesia’s climate ranking dropping to the lowest level according to the Climate Action Tracker (CAT) assessment framework.

Delima Ramadhani, IESR Climate Policy Project Coordinator, said at the launch of the Climate Action Tracker report that throughout 2023, Indonesia has delivered a number of initiatives and policies that normatively support the acceleration of the energy transition, but this does not have implications for efforts to reduce emissions.

“Indonesia’s rating dropped from ‘highly insufficient’ to ‘critically insufficient’. ‘Critically insufficient’ means that if countries have climate commitments like Indonesia, the rate of global warming will be at the level of 4 degrees,” said Delima.

Mustaba Ari Suryoko, Intermediate Policy Analyst, Coordinator of the Aneka EBT Program Preparation Working Group, responded that the assessment of emissions reduction efforts is a reminder for all parties to continue working to achieve emissions reduction targets.

“Achievement number figures are an accumulation of various variables, so we hope that in planning we will not only determine ambitious targets but also make efforts to achieve them,” he said.

Anna Amalia, Functional Intermediate Planner at the Ministry of National Development Planning (Bappenas), said that to pursue Indonesia’s more ambitious climate targets there are several opportunities.

“The government is starting to move progressively, in the next 20 years we will have a RPJP (National Long Term Development Plan-ed) which focuses on reducing GHG emissions, how we encourage economic growth through low emission corridors and of course other policies will follow,” Anna said.

The annual Climate Transparency report also includes an Implementation Check Report to see the effectiveness of climate policy implementation.

Akbar Bagaskara, IESR’s Power Sector Analyst, explained that Indonesia’s electricity sector is in the medium category because the implementation of policies that support the transition in the electricity sector has not been effective.

“Historically, in the last five years we never achieved our annual renewable energy target. We need to strengthen policies to strengthen Indonesia’s renewable energy enabling environment, as well as involving various groups in the planning, procurement and evaluation processes,” explained Akbar.

Yosi Amelia, Forest & Climate Program Officer, Yayasan Madani Berkelanjutan, highlighted the lack of synchronization of strategies across ministries and government agencies which created unclear documents that should be treated as guidelines.

“There are inconsistencies between documents, for example regarding Indonesia’s deforestation quota. In the FOLU Net Sink 2030 strategy, there are no longer deforestation quotas, while the E-NDC still provides deforestation quotas,” said Yosi.

Communities Build Sustainability-Based Businesses

Cirebon, 26 January 2024 – On the fourth day, the West Java Energy Exploration team continued their journey to Cirebon. Precisely in South Kesunean, Kasepuhan Village, Lemahwungkuk District. There, the group moved towards the shoreline to plant mangroves. South Kesunean has one problem, namely the emerging soil phenomenon. This raised land appears due to the accumulation of rubbish on the shoreline which is compacted to form new land.

This habit of residents threatens a mangrove ecosystem which functions to resist sea abrasion. For approximately one year, a group of Kesunean residents took the initiative to form a Working Group (Pokja) to care for the mangrove area located in their area.

The West Java Energy Exploration group visited the Kesunean mangrove area to participate in planting mangroves as an effort to restore mangrove forests.

Pepep Nurhadi, Chair of RW 09 South Kesunean, as well as chair of the South Kesunean Mangrove Working Group (Pokja), said that the presence of mangroves in South Kesunean plays an important role in preventing flooding and abrasion as well as protecting coastal ecosystems.

“For this reason, we thank all parties who have supported us in this mangrove planting effort. “We hope that in the future our area can become an ecotourism area so that it can be more beneficial for local residents,” he said.

 

Karya Nugraha Jaya Cooperative Pioneers Sustainable Dairy Farm:

People and communities continue to look for ways to use renewable energy technology. In the landscape of micro businesses and cooperatives, community groups such as the Karya Nugraha Jaya Producers Cooperative strive to ensure that livestock operational processes can be clean and sustainable.

The Karya Nugraha Jaya Cooperative is a dairy farming cooperative located in Cipari Village, Cigugur District, Kuningan Regency, West Java, founded in 2004 and has around 4000 cows with a cooperative membership of 100 farmers. This cooperative is motivated to organize clean and sustainable livestock farming.

Iding Karnadi, Chairman of the Karya Nugraha Jaya Cooperative, said that the first thing that was initiated was the installation of a biogas reactor to process cow dung waste.

“Initially, dairy cow dung was an environmental problem, apart from being dirty, it also smelled bad. Finally, we collaborated with ITB to create this biogas installation,” he said.

The biogas installation was finally installed with a production capacity of 100 m3 of gas per day. The gas produced is used for electricity needs for water heating on farms. It doesn’t stop there, the Karya Nugraha Jaya Cooperative also installed hybrid solar panel installations on farms and feed factories amounting to 56 kWp.

“For the feed factory, we currently fully use electricity from PLTS amounting to 40 kWp, no longer using electricity from PLN,” said Iding.

Iding then continued that his party continues to look at other opportunities to make its livestock cooperatives more advanced and adopt more sustainable practices. Currently, the party is collaborating with ITB to treat livestock wastewater. In the future, the management of this cooperative hopes that the location of this cooperative will become an educational tourist attraction about Sustainable Dairy Farms.

The Decline of Indonesia’s Climate Policy and Action Rating in 2023

Delima Ramadhani, Climate Policy Project Coordinator, IESR presents the results of the CAT assessment of Indonesia’s climate policies, targets and actions

Jakarta, January 31, 2024 – According to the Climate Action Tracker (CAT) report, the climate policies, actions, and targets outlined in Indonesia’s 2023 Nationally Determined Contribution (NDC) document as “critically insufficient” to limit global temperatures  to below 1.5 degrees Celsius. This represents a decline from 2022 when Indonesia was rated as “highly insufficient.”

The Institute for Essential Services Reform (IESR), a collaborator with CAT, has disclosed that Indonesia, rated as “critically insufficient” under the Enhanced NDC target, could potentially release greenhouse gas emissions of 1,800 million tons of carbon dioxide equivalent for the unconditional target and 1,700 million tons of carbon dioxide equivalent for the conditional target by 2030. This estimation excludes emissions from the forestry and land sectors.

Fabby Tumiwa, Executive Director of IESR, attributed Indonesia’s downgrade to “critically insufficient” to the escalating use of coal in downstream mining. He stressed that the lowest CAT rating implies that the existing climate targets and policies would result in global emissions surges surpassing 4 degrees Celsius.

“Indonesia requires concrete and measurable actions to transition from fossil energy and expedite the shift to renewable energy in the coming decade,” Fabby stated during his remarks at the launch of the Climate Action Tracker Assessment Indonesia and Climate Transparency Implementation Check reports, organized by IESR on January 30. 

Throughout the 2022-2023 period, the Indonesian government has made progress in climate mitigation actions, notably by promoting the development of renewable energy through Presidential Regulation (Perpres) No. 112/2022 concerning the Acceleration of Renewable Energy Development for Electricity Supply. Additionally, the government has made positive commitments to achieving the 2030 net zero and FOLU net sink targets. Ambitious policies are needed to realize them.

The rise in emissions in 2022 amounts to approximately 200 million tons of carbon dioxide equivalent, with increased coal consumption being a contributing factor. Emissions from captive power plants, those operated by utility companies outside of PLN, are anticipated to contribute to a further increase of around 100 million tons by 2030. Indonesia’s current climate policy would result in the country reaching an emissions level of 1,487-1,628 MtCO2e (excluding the forest and land sector) by 2030.

Moreover, Indonesia has committed to the Just Energy Transition Partnership (JETP), aiming for a renewable energy mix exceeding 34% by 2030. However, it is noted that the JETP falls short of aligning Indonesia with the targets set in the Paris Agreement.

Delima Ramadhani, Climate Policy Project Coordinator at IESR, explained that to meet the Paris Agreement standards, emissions from the electricity sector must decrease to 140-150 million tons of carbon dioxide equivalent by 2030, ultimately reaching zero emissions by 2040.

“Indonesia needs to adopt key reforms as outlined in the comprehensive investment planning and policy (CIPP) document of the Just Energy Transition Partnership (JETP) and formulate and implement an ambitious decarbonization pathway for off-grid (captive) power plants,” explained Delima.

Considering the significance of the electricity sector and its potential for strategic decarbonization, IESR also assessed the implementation of the National Electricity General Plan (RUKN) policy. This policy serves as Indonesia’s primary reference for domestic electricity development and can be utilized for monitoring and evaluating renewable energy progress. Akbar Bagaskara, IESR’s Electricity System Analyst, explained that the overall assessment of the RUKN is “medium,” indicating that while it has a clear legal basis, namely MEMR Regulation No. 143/2019, there are numerous implementation challenges, including the consistent failure to achieve the annual renewable energy mix target.

“Indonesia’s challenges in meeting the annual targets for the renewable energy mix should prompt the government to conduct a thorough evaluation and address this issue with a sense of urgency. It is crucial for the government to formulate progressive strategies and innovations aligned with the Paris Agreement,” stated Akbar.

He elaborated on several actions the government should take to enhance the implementation of renewable energy development in Indonesia. Firstly, there is a need to increase the presence of supportive laws to foster a more conducive environment. Secondly, clear and comprehensive instruments should be provided, covering the entire spectrum from planning and procurement to reporting processes, especially for entities beyond PLN. Thirdly, a new revenue model for PLN should be established. Lastly, there is a necessity to refine PLN’s sustainable finance framework to attract a broader range of financing sources.

Kompas | Decarbonize Away Grills from Fire

Starting from 2019, the global average temperature has increased by 1.1 degrees Celsius, which is hotter than the pre-industrial period of the 1850s. The increase in temperature on the earth’s surface is an indication of an increase in the concentration of greenhouse gases, including carbon dioxide (CO2), methane (CH4), and nitrogen monoxide (N2O), which is trapped in the atmosphere.

Read more on Kompas.

Increase Collaboration and Investment for Renewable Energy Utilization in Central Java

 

 Fabby Tumiwa, Direktur Eksekutif IESR dalam acara Forum Akselerasi Energi Terbarukan Jawa Tengah (19/12).
Fabby Tumiwa, Direktur Eksekutif IESR dalam acara Forum Akselerasi Energi Terbarukan Jawa Tengah (19/12)

Semarang, December 19, 2023 – The Central Java Provincial Government is seeking to encourage collaboration and synergy to accelerate the energy transition and achieve the target of a 21.32% renewable energy mix in the region by 2025, as set in its Regional Energy General Plan (RUED). However, the renewable energy mix in the region only reached 15.76% in 2022, according to data from the Central Java Energy and Mineral Resources Agency (ESDM). With only two years left to achieve the target, the Central Java Provincial Government must pursue the remaining 5.56% of the renewable energy mix.

The Institute for Essential Services Reform (IESR) has been collaborating with Central Java since 2019 to speed up the implementation of renewable energy in the region. To accelerate the transition towards renewable energy and attain the RUED target, it is necessary to establish supportive conditions such as regulations, community initiatives, public-private partnerships, and foster investment. IESR believes that the regional funding capability must be enhanced to achieve the RUED target and attract more renewable energy investment.

“Central Java has a vast potential for renewable energy, including 194 GW of solar energy and 3.5 MW of wind energy. To accelerate the utilization of these resources, several measures need to be taken, such as disseminating information and building capacity related to renewable energy development, promoting investment ecosystems that prioritize green funding, and setting up monitoring, reporting, and evaluation platforms to encourage public participation,” said Fabby Tumiwa, Executive Director of IESR at the Central Java Renewable Energy Acceleration Forum (19/12).  

During the same event, IESR announced a partnership with the Central Java Province Investment and One Stop Integrated Service (DPMPTSP) Office to promote green investment, especially in renewable energy in Central Java.

IESR meresmikan kerja sama dengan Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu (DPMPTSP) Provinsi Jawa Tengah untuk mendorong investasi hijau dan khususnya energi terbarukan di Jawa Tengah

Sakina Rosellasari, the Head of Investment and One-Stop Integrated Service (DPMPTSP) in Central Java Province, has recently announced that her office has been actively promoting green investment in the region. To achieve this, they have taken several measures, such as compiling a list of investment-ready projects (known as Investment Project Ready to Offer or IPRO) that focus on circular economy projects such as waste treatment, mini-hydro, sustainable product processing, and waste processing into refused derived fuel (RDF). The DPMPTSP has also created promotional videos, met with various stakeholders, and signed cooperation agreements to encourage green investment in Central Java.

“The preparation of IPRO is important to attract potential investors and provide confidence that Central Java Province is the right location to invest. The IPRO in Central Java covers three sectors: infrastructure, agriculture, and tourism. Within the infrastructure sector is the construction of the Banjaran and Logawa mini hydro power plants in Banyumas Regency and the Tegal city B3 medical waste treatment and industrial development,” Sakina said.

The central government has issued Presidential Regulation No.11/2023 through the Ministry of Home Affairs. This regulation empowers local governments to manage and provide biomass, biogas, and new renewable energy. District and city governments have been granted the authority to support renewable energy development through Kepmendagri 900.1.15.5-1317 of 2023. Some examples of the district and city governments’ authority include waste management, provision of road equipment on district/city roads, empowerment of small fishermen in district/city areas, and provision of electrical/lighting installation components in office buildings.

Tavip Rubiyanto, an Associate Expert Policy Analyst for Energy and Mineral Resources Substance at the Directorate SUPD I of the Directorate General of Regional Development for the Ministry of Home Affairs, states that the development of renewable energy by regions is crucial to achieving the national renewable energy mix target of 23% by 2025.

Tavip explained that the rules regarding the discretion of regional authority in the management of new renewable energy will be effective from 2024. He hoped the regions would start budgeting to achieve these targets. Matters related to regional authority will be financed through the APBD.

To achieve the renewable energy targets at the regional level, Boedyo Dharmawan, Head of the Energy and Mineral Resources Office of Central Java Province, emphasized the need for cooperation between sectors. Coordination between the ESDM, environment, transportation, and planning agencies must be strengthened.

Boedyo Dharmawan also shared Central Java’s achievements in renewable energy, exceeding the annual target of 2022. These achievements include PLTS with a total capacity of around 25 MW, 6 MW micro hydropower plants (PLTMH), 31 MW mini hydro power plants (PLTM), and 322 MW hydropower plants (PLTA).

“Not only in terms of regulation, the government is also committed at the implementation level. To succeed in the energy transition towards the renewable energy era, the provincial government is also trying to control greenhouse gas emissions through the battery-based electric motor vehicle program,” said Boedyo.

Community initiatives that adopt renewable energy can significantly contribute to increasing the renewable energy mix in the region. This initiative can play an essential role in advancing the community’s welfare. Yanto, Head of Banyuroto Village, Sawangan District, Magelang Regency, and an Energy Independent Village, recognizes this fact.

Yanto explained that with a population of 930 cows and the assistance of various parties from the government, community, and non-governmental organizations, his village had developed around 34 biogas processing units from 2023 to 2027. This biogas helps to save the kitchen needs of 44 households in his village. Additionally, biogas can be used to fuel lighting lamps (petromak). The solid and liquid waste from cow dung is also helpful for organic fertilizer, which can fertilize agricultural soil.