Indonesia Faces Hot Temperature: Health Threats and the Urgency of Climate Crisis Mitigation

Cuaca Panas di Indonesia
Cuaca Panas di Indonesia
Indonesia Faces Hot Temperature. Dok Freepik

Jakarta, May 22, 2024 – Indonesia recently experienced a hot air phenomenon. The Meteorology, Climatology, and Geophysics Agency (BMKG) confirmed this was not a heatwave. However, Climate Action Tracker (CAT) data shows that current policies worldwide will lead to a warming of around 2.7°C above pre-industrial levels. This underscores the urgent need for climate crisis mitigation efforts in all countries.

Wira A Swadana, Program Manager of Green Economy, Institute for Essential Services Reform (IESR), explained, citing CAT data, climate actions and policies for emission reduction in Indonesia are categorized as critically insufficient. This means the government’s efforts to reduce global warming are still far from limiting the Earth’s temperature below 1.5˚C in the 2015 Paris Agreement.

“The CAT study also shows two reasons for Indonesia’s low rating. First, the increase in coal burning for coal-fired power plants (CFPPs) operating in 2022 resulted in Indonesia’s emissions increasing by about 21% within a year. Second, power plants operating outside PT PLN’s plans and networks are often called captive power plants, which supply electricity to many factories,” said Wira in X Space, entitledHot Weather, What Can We Do?” on Wednesday (22/4/2024). 

Furthermore, Wira mentioned that a temperature rise of 1.5˚ to 2˚C could change much of life on Earth. The Intergovernmental Panel on Climate Change (IPCC) study found that when the temperature increases by 1.5°C, nearly 14 percent of the world’s population will be exposed to severe heat waves. However, if there is a 2°C increase, 37 percent of the world’s population will be affected by severe heat waves. Due to this, Wira emphasized the need for the Government of Indonesia to enhance its commitment to mitigating and adapting to the climate crisis.

“Unfortunately, this commitment has not been maximized. This can be seen from the Government, through the National Energy Council (DEN), changing the renewable energy mix target in 2025 to 17-19%, which is lower than the previous target of 23%. This move sends the wrong signal to the private sector looking to invest in renewable energy in Indonesia, for example. In addition, the government also needs to look at funding commitments because Indonesia’s achievement to date has not exceeded 60%,” said Wira. 

Wira emphasized the need for cooperation among various parties, including the executive, legislative, and private sectors, to promote the use of renewable energy. Several studies have demonstrated Indonesia’s significant potential for renewable energy sources such as solar, wind, hydro, bioenergy, and geothermal.

Meanwhile, Clarissa Magdalena, Policy and Advocacy Manager, Center for Indonesia’s Strategic Development Initiatives (CISDI), emphasized that the hot weather causes humans to sweat more quickly, leading to a higher risk of prickly heat and itching. If the body cannot adapt to the heat, its internal temperature will rise to match the environmental temperature, resulting in fatigue, headaches, and nausea.

“The hot temperature phenomenon has a severe impact on the health of vulnerable people, such as the elderly, pregnant women, and children, due to dehydration. In these vulnerable groups, the hot weather can cause heat stroke, an emergency medical condition when the body temperature rises above 40 degrees Celsius. Symptoms of heatstroke include confusion, seizures, and loss of consciousness,” said Clarissa. 

Clarissa suggests that vulnerable groups consume at least eight glasses or two liters of water daily to minimize the impact. To replenish body fluids, they should eat fruits and vegetables such as watermelon, melon, spinach, and cucumber. It’s essential to avoid excessive alcohol and caffeine as they can worsen dehydration.

Power Wheeling Will Open Renewable Energy Investment Opportunities in Indonesia

press release
Fabby Tumiwa, Direktur Eksekutif IESR
Fabby Tumiwa, Direktur Eksekutif IESR

Jakarta, May 20, 2024– The government is again pushing for the power wheeling scheme to be included in the Draft New and Renewable Energy Bill (RUU EBET). This scheme will fulfill New and Renewable Energy (NRE) supply Articles 29A and 47A in network utilization cooperation (open access). 

The power wheeling scheme is the joint use of the electricity network. In this scheme, power producers can distribute electricity directly to end users using transmission and distribution networks owned by license holders. 

The Institute for Essential Services Reform (IESR) supports the inclusion of power wheeling in the EBET Bill. IESR believes that the implementation of power wheeling will create opportunities for developing more comprehensive renewable energy sources and utilization to support the energy transition towards net-zero emission (NZE) set by the government.

The existence of power wheeling will impact the growing supply and demand for renewable energy, particularly industrial electrification solutions, thus stimulating increased investment. Power wheeling also enhances communities’ and businesses’ access to renewable energy.

Fabby Tumiwa, Executive Director of IESR, mentioned that the reliance on demand and the procurement process from the State Electricity Company (PLN) presents a rapid challenge to developing renewable energy in Indonesia. The fact that PLN is the sole off-taker (energy buyer/provider) leads to suboptimal development of renewable energy resources. Tumiwa suggested that implementing a power wheeling scheme would encourage the participation of other state-owned and private electricity producers in the development of renewable energy, consequently accelerating the increase of Indonesia’s renewable energy mix.

Fabby assessed that concerns considering power wheeling as a form of electricity privatization are inappropriate. The transmission network was not sold to the private sector and is still owned by PLN as a state-owned enterprise. Instead, this scheme can optimize the utilization of PLN’s transmission network assets to increase PLN’s revenue from network rental fees, which can be used to strengthen PLN’s investment in the network. 

IESR highlights several things that need to be considered when implementing power wheeling. First, this power wheeling scheme should be a mechanism that promotes renewable energy. Therefore, renewable power wheeling must be mentioned explicitly in the bill. Second, implementing power wheeling should not compromise the reliability of the electricity supply. Third, power wheeling must be regulated so as not to harm the network owner. Therefore, the tariff for using the shared electricity network (wheeling charge) must reflect the costs required to maintain and improve system reliability and ancillary services and cover investment costs for network reinforcement. Fourth, the government or regulator sets the tariff formula for using the shared electricity network, and fifth, to clarify the implementation, it is necessary to make more detailed derivative rules regarding power wheeling.

“The EBET Bill can require more detailed and technical power wheeling rules to be included in the implementing regulations of the law, in the form of Government Regulations (PP). Technical regulations and details will be regulated through ministerial regulations of ESDM,” Fabby explained.

Furthermore, Fabby revealed that implementing power wheeling can create a renewable energy market and positively impact industrial investment in Indonesia.

“The industry is currently focused on developing a sustainable approach. Many industry associations are advocating for this, including those participating in the RE100 initiative, which aims to transition to renewable energy by 2030. The power wheeling scheme will simplify the process for industries to access electricity from renewable sources, helping to reduce their carbon footprint, meet sustainability goals, and present a positive environmental image to customers. This is a positive step towards improving the investment climate in Indonesia,” added Fabby.

IESR hopes that the DPR and the government will consider broader national interests and benefits when establishing the power-wheeling clause in the New Energy Renewable Energy (EBET) Bill.

Taxonomy for Indonesian Sustainable Finance Opportunities and Gaps to Support Energy Transition Financing

press release

Jakarta, May 17, 2024—The Financial Services Authority (OJK) has updated the sustainable finance market guidance from the Indonesian Green Taxonomy (THI) to the Indonesian Taxonomy for Sustainable Finance (TKBI) in February 2024. This taxonomy’s objectives include attracting more sustainable finance to various sectors, including the energy sector, and achieving the net zero emission (NZE) target by 2060 or earlier.

The Institute for Essential Services Reform (IESR) believes that while the renewal of the green taxonomy through TKBI is a step forward, there are still gaps that could make it less effective. First, the labeling system provides opportunities for fossil energy activities to receive sustainable financing. In TKBI, the classification of economic activities is no longer labeled with traffic light colors (“red”, “yellow”, “and green”), but rather “does not meet classification” and “transition” for activities that are not yet in line with the Paris Agreement but reduce emissions significantly within a specific timeframe, and “green” is in line with the Paris Agreement and considering NZE 2060 or sooner.

TKBI includes in the ‘transition’ category the activities of existing Coal-Fired Power Plants (CFPP) and the construction of new CFPPs established before Presidential Regulation (Perpres) No. 112 of 2022 or new CFPPs integrated with industry. There needs to be more consistency in categorizing CFPP with other power plants. From the aspect of emission mitigation, different plants, such as gas, hydro, geothermal, and so on, will get the “transition” category if the plant’s life cycle emissions are between 100-500 grams of carbon dioxide equivalent per kWh and the “green” category if the life cycle emissions are below 100 grams of carbon dioxide equivalent per kWh. However, for all CFPPs, the comparison is not life cycle emissions; instead, they must meet the requirements of reducing GHG emissions by at least 35 percent within ten years and stop operating by 2050. 

Deon Arinaldo, Program Manager of Energy Transformation, IESR, considers the emission reduction indicator for CFPP to be insufficient. He notes that CFPPs have operational emissions reaching 900-1200 grams of carbon dioxide equivalent per kWh, and even higher when considering life cycle emissions. Therefore, assigning a transition or ‘green’ label with an indicator of a 35 percent emission reduction after 10 years is inappropriate and contradicts the general principles of climate crisis mitigation, which aim to keep global temperature rise below 2 degrees Celsius and strive to limit it to 1.5 degrees Celsius.

“If we want to be consistent with 1.5 degrees Celsius, emissions from national coal-fired power plants should have peaked before 2030, approach zero by 2040, and no more emissions from power plants by 2045. The indicator used for green categorization should be for financial support that allows coal-fired power plants to reduce emissions before 2030 and stop operating before 2045,” said Deon. 

In addition, mining and mineral extraction activities that support energy transition industries, such as copper, nickel, and tin, are also included in the ‘transition’ category. IESR finds that a clear description has not accompanied this labeling to ensure that all mining and quarrying activities consistently support the energy transition.

Farah Vianda, Coordinator of Sustainable Finance at IESR, mentioned that this loophole allows greenwashing practices to gain sustainable financing.

“Regular updates and tightening of criteria are important. In addition, there needs to be a third party to ensure that the labeling category of an activity is in accordance with TKBI, not just an assessment carried out internally,” said Farah.

Meanwhile, Wira A Swadana, Program Manager of Green Economy, IESR, said that TKBI could be a reference for funding to support the achievement of Indonesia’s Nationally Determined Contribution (NDC) target in the future. 

“TKBI needs to ensure that there are clear rules that must be followed by the use of technologies that are proven to be efficient and effective for emission reduction so that TKBI can also be a technical reference to support the preparation of a comprehensive Second NDC,” said Wira. 

Kompas | Subsidies and Compensation in the Electricity Sector Tend to Increase

Reform of electricity market governance is considered to need to be seen more broadly, as part of efforts to reduce the state’s financial burden. The reason is that currently, through subsidies and compensation to PT Perusahaan Pendidikan Negara (Persero), electricity is still very dependent on the state budget. Reform is needed to get electricity prices that are correct and economically appropriate.

Read more on Kompas.

Workshop and Capacity Building for Media Phase 1

Background

Indonesia, the world’s largest archipelago, is faced with two major crises: climate change and the energy crisis. The impact of climate change is increasingly felt with the increasing frequency of natural disasters, such as floods, landslides and droughts. On the other hand, the energy crisis is characterized by a high dependence on fossil fuels that are depleting and not environmentally friendly.

An energy transition towards renewable energy or clean energy is the solution to overcome both crises. Renewable energy such as solar, wind and water have great potential to meet Indonesia’s energy needs, while reducing greenhouse gas emissions and the impacts of climate change.

Civil Society Organizations (CSOs) and the media have an important role in encouraging the government to achieve clean energy targets in Indonesia. CSOs can act as agents of advocacy, education, and community mobilization to support clean energy. Although CSOs have an important role, there are still capacity gaps in understanding and communicating energy transition issues. Meanwhile, mass media can act as agents of education and persuasion to support clean energy. Although the mass media has an important role, there is still a capacity gap in understanding and communicating energy transition issues, especially in local mass media. This is due to the complexity of energy transition issues that require in-depth knowledge and understanding. Moreover, there are many differences of opinion and challenges on new renewable energy (NRE) as a solution for clean energy sources in the future.

To achieve the impact of CSO pressure on government policies in line with the Net Zero Emission (NZE) target in 2060 or sooner, it is important to increase CSO capacity so that advocacy and information dissemination are more targeted. To that end, IESR created a capacity building program designed to increase the capacity of CSOs in understanding and communicating energy transition issues in Indonesia.

The capacity building program is expected to benefit CSOs in improving their ability to promote energy transition through advocacy, education, and community mobilization. This capacity building program is an important step to improve the capacity of CSOs in supporting the energy transition in Indonesia. By increasing the capacity of CSOs, it is expected that the energy transition in Indonesia can be implemented more effectively and sustainably.

Prior to the capacity building program, IESR has conducted an in-depth analysis of the condition of mass media coverage in Indonesia and conducted mass media mapping. These results were used to create a capacity building concept that adapts to the needs. Needs that IESR considers important enough to be followed up will be selected as the basis for the capacity building concept.

The capacity building program will be held in two phases in 2024. In the workshop that will be held at the end of May 2024 (stage 1), climate change, the introduction of energy transition, and also the energy transition roadmap in Indonesia will be presented. Regarding climate change, it will be presented how the condition of Indonesia with current government policies will impact the NZE target. It will also explain how Indonesia’s environmental conditions and the effect of carbon emissions on climate change are occurring. The introduction to energy transition is given with material that is already structured and relevant to current conditions. The general public can access it freely and learn about the energy transition more easily. As well as the energy transition roadmap that needs joint commitment so that the NZE target can be achieved. Phase 2 will discuss more technical issues such as solar and wind power generation technologies as well as nuclear and CSS technologies. This phase will be conducted at the end of June or sooner.

About Climate Action Tracker (CAT)

The Climate Action Tracker (CAT) is an independent scientific analysis that assesses a country’s climate action and measures its conformity with the Paris Agreement to pursue efforts to limit global temperature rise to 1.5oC.

CAT is the product of a consortium of two organizations, Climate Analytics and New Climate Institute, in collaboration with several other institutions. CAT has been providing its independent analysis to policymakers since 2009.

In 2022, the Institute for Essential Services Reform (IESR) officially joined as a collaborator in CAT. IESR provides assessments of other countries’ mitigation targets, policies and actions and reviews Climate Analytics’ assessments of Indonesia’s mitigation targets, policies and actions.

About the Energy Transition Academy

The Energy Transition Academy by transisienergi.id is a digital learning portal on energy transition. The materials provided in this program are reliable and up to date sources. Also relevant to Indonesia’s current conditions.

The Energy Transition Academy is an educational solution for students, civil society organizations, journalists to deepen their understanding of energy transformation in Indonesia and the world. In addition, the Energy Transition Academy also targets and develops skill building, so that the younger generation can contribute and be active in the energy transition process.

Objective

  1. Providing knowledge related to energy transition issues and renewable energy in Indonesia
  2. Understand the complexity of energy transition issues that occur
  3. Can identify and analyze energy transition policies
  4. Develop effective advocacy and communication strategies
  5. Build a common perception among mass media in the field of climate change or renewable energy in encouraging the energy transition
  6. Build networks and cooperation with various parties

Workshop and Capacity Building for Civil Society Organizations (CSO) Phase 1

Background

Indonesia, the world’s largest archipelago, is faced with two major crises: climate change and the energy crisis. The impact of climate change is increasingly felt with the increasing frequency of natural disasters, such as floods, landslides and droughts. On the other hand, the energy crisis is characterized by a high dependence on fossil fuels that are depleting and not environmentally friendly.

An energy transition towards renewable energy or clean energy is the solution to overcome both crises. Renewable energy such as solar, wind and water have great potential to meet Indonesia’s energy needs, while reducing greenhouse gas emissions and the impacts of climate change.

Civil Society Organizations (CSOs) and the media have an important role in encouraging the government to achieve clean energy targets in Indonesia. CSOs can act as agents of advocacy, education, and community mobilization to support clean energy. Although CSOs have an important role, there are still capacity gaps in understanding and communicating energy transition issues. Meanwhile, mass media can act as agents of education and persuasion to support clean energy. Although the mass media has an important role, there is still a capacity gap in understanding and communicating energy transition issues, especially in local mass media. This is due to the complexity of energy transition issues that require in-depth knowledge and understanding. Moreover, there are many differences of opinion and challenges on new renewable energy (NRE) as a solution for clean energy sources in the future.

To achieve the impact of CSO pressure on government policies in line with the Net Zero Emission (NZE) target in 2060 or sooner, it is important to increase CSO capacity so that advocacy and information dissemination are more targeted. To that end, IESR created a capacity building program designed to increase the capacity of CSOs in understanding and communicating energy transition issues in Indonesia.

The capacity building program is expected to benefit CSOs in improving their ability to promote energy transition through advocacy, education, and community mobilization. This capacity building program is an important step to improve the capacity of CSOs in supporting the energy transition in Indonesia. By increasing the capacity of CSOs, it is expected that the energy transition in Indonesia can be implemented more effectively and sustainably.

Prior to the capacity building program, IESR has conducted an in-depth analysis of the condition of mass media coverage in Indonesia and conducted mass media mapping. These results were used to create a capacity building concept that adapts to the needs. Needs that IESR considers important enough to be followed up will be selected as the basis for the capacity building concept.

The capacity building program will be held in two phases in 2024. In the workshop that will be held at the end of May 2024 (stage 1), climate change, the introduction of energy transition, and also the energy transition roadmap in Indonesia will be presented. Regarding climate change, it will be presented how the condition of Indonesia with current government policies will impact the NZE target. It will also explain how Indonesia’s environmental conditions and the effect of carbon emissions on climate change are occurring. The introduction to energy transition is given with material that is already structured and relevant to current conditions. The general public can access it freely and learn about the energy transition more easily. As well as the energy transition roadmap that needs joint commitment so that the NZE target can be achieved. Phase 2 will discuss more technical issues such as solar and wind power generation technologies as well as nuclear and CSS technologies. This phase will be conducted at the end of June or sooner.

About Climate Action Tracker (CAT)

The Climate Action Tracker (CAT) is an independent scientific analysis that assesses a country’s climate action and measures its conformity with the Paris Agreement to pursue efforts to limit global temperature rise to 1.5oC.

CAT is the product of a consortium of two organizations, Climate Analytics and New Climate Institute, in collaboration with several other institutions. CAT has been providing its independent analysis to policymakers since 2009.

In 2022, the Institute for Essential Services Reform (IESR) officially joined as a collaborator in CAT. IESR provides assessments of other countries’ mitigation targets, policies and actions and reviews Climate Analytics’ assessments of Indonesia’s mitigation targets, policies and actions.

About the Energy Transition Academy

The Energy Transition Academy by transisienergi.id is a digital learning portal on energy transition. The materials provided in this program are reliable and up to date sources. Also relevant to Indonesia’s current conditions.

The Energy Transition Academy is an educational solution for students, civil society organizations, journalists to deepen their understanding of energy transformation in Indonesia and the world. In addition, the Energy Transition Academy also targets and develops skill building, so that the younger generation can contribute and be active in the energy transition process.

Objective

  1. Providing knowledge related to energy transition issues and renewable energy in Indonesia
  2. Understand the complexity of energy transition issues that occur
  3. Can identify and analyze energy transition policies
  4. Develop effective advocacy and communication strategies
  5. Build a common perception among mass media in the field of climate change or renewable energy in encouraging the energy transition
  6. Build networks and cooperation with various parties

Identify Funding Needs for the Just Transition

Jakarta, 30 April 2024 – The energy transition process is entering a new phase with the Just Energy Transition Partnership (JETP) funding which was agreed in 2022. The availability of affordable funding is a real challenge for the energy transition process. In the latest study, Identifying Finance Needs for a Just Transformation of Indonesia’s Power Sector, conducted by the Institute for Essential Services Reform (IESR) and the New Climate Institute (NCI), underscoring Indonesia’s funding needs for the energy transition reached USD 2.4 billion.

Wira Agung Swadana, Green Economy Program Manager, IESR, emphasized that without financing, transformation will not occur. It is also important to build community resilience at the site level so that communities do not experience negative impacts from the ongoing energy transition process.

“Transitional changes need to be made in society, apart from the fact that we will not be dependent on fossil energy, but we need to see the economic transformation in the area, especially coal producing area,” said Wira.

Reena Skribbe, Climate Policy Analyst, New Climate Institute, explained that based on this released report, ending coal operations according to the JETP target scenario would have the potential to avoid health costs of USD 150 billion, and the potential to avoid premature deaths due to air pollution of up to 240 thousand people in 2050.

“There are two scenarios that we use in this study. First, the JETP scenario is in line with the JETP emission reduction target of 290 metric tons of CO2, and JETP+ is in line with the Paris Agreement target,” explained Reena.

The results of the JETP+ scenario of ending coal operations will be able to secure health costs of around USD 230 billion and avoid a total of 360 thousand premature deaths from air pollution by mid-century.

Farah Vianda, Sustainable Finance Coordinator, IESR, added that the fate of workers currently working in the mining sector needs to be considered so that they do not lose their livelihood.

“To prepare for the transition process, especially in coal-producing areas, strong government institutional capacity is needed. So, it is important to increase government capacity and establish formal institutions that focus on managing a just transition,” said Farah.