Report Launch and Discussion: Analysis of Flexible Coal-Fired Power Plant Operation for Renewable Energy Integration in Wednesday 15 June 2022. Open to the public.
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Indonesia Needs not only Energy Transition, but The Accelerated One
Jakarta, May 31, 2022 – The geopolitical conflicts that have occurred in the last few months have affected a number of global situations, one of which is the condition of energy supply. European Union countries that feel the impact of the disruption in energy supply have begun to look for various alternatives, both in the short and long term. As a long-term solution, the European Union issued a new energy policy entitled “REpower EU”. Under this policy, the European Union plans to increase its renewable energy capacity to 740 GWdc by 2030 to reduce their dependence on Russia’s fossil energy and ensure its energy security.
Fabby Tumiwa, Executive Director of IESR, at the MGN Media Summit on Tuesday, May 31, 2022, stated that the current global geopolitical situation is indeed not favorable for the energy transition not only in Indonesia but in various countries in the world. However, after several months of ongoing geopolitical tensions, a number of countries have begun to use this momentum to break away from dependence on fossil energy and accelerate their renewable energy. Indonesia should also be able to do the same thing for instance by ensuring that the regulations made to support the acceleration of renewable energy such as the Minister of Energy and Mineral Resources Decree number 26/2021 are implemented.
“The weakness of this country is that the plan has been made but its implementation and enforcement is still weak, for example the Minister of Energy and Mineral Resources Regulation 26/2021 regarding rooftop PV,” Fabby explained.
Fabby explained that the MEMR Ministerial Regulation number 26/2021 had not yet been implemented by PLN because several issues were still hampered, one of which was the Ministry of Finance’s compensation for PLN, whose regulations had not yet been made.
“Then maybe the DPR RI can summon the Minister of Finance and the Minister of Energy and Mineral Resources to explain the situation and ask them to immediately design a compensation scheme for PLN,” he added.
The energy transition situation in Indonesia itself is not very encouraging. Having a renewables mix target of 23% in 2025, data from the Ministry of Energy and Mineral Resources in February 2022 shows that the target has only been achieved around 11.5%. Sugeng Suparwoto, Chairman of Commission VII DPR RI which handles energy, admitted that it was difficult to pursue the renewable energy mix target, but that did not mean it was impossible.
“I have to admit this is hard, but with our extra hard work together, I am still optimistic that we can achieve it,” explained Sugeng.
PLN as a key actor, especially in accelerating renewable energy, stated that apart from providing energy, the demand side for energy must also be ensured.
“We also need to ensure that the demand for renewable energy is available. PLN itself will rely heavily on existing technology to pursue net-zero emission (NZE) and energy mix targets,” Cita Dewi, EVP Planning & Engineering for EBT at PT PLN (Persero), explained.
Cita added that his party cannot work alone to execute the acceleration of renewable energy on its own. It takes collaboration of various parties to ensure this energy transition runs.
Daniel Purba, Senior Vice President, Strategy & Investment, PT Pertamina (Persero) stated that our fossil reserves are not as large as they used to be. In terms of consumption, even though at this time fossils still dominate, in the future it will definitely change.
“Even though now, for example, fuel dominates people’s consumption, in the future electric vehicles and alternative fuels such as hydrogen will be widely used,” he said.
With this phenomenon, corporations have a need to diversify and even transform their business so that the company can be sustainable, and gain the trust of both investors and consumers.
“Pertamina itself has started to diversify its business by starting to develop hydrogen and using solar power in our operational offices,” added Daniel.
Highlighting energy policy in Indonesia, Djoko Siswanto, Secretary General of the National Energy Council, stated that Indonesia has quite complete policy instruments, starting from road maps, targets, and plans. However, according to him, it is important to measure whether we are on the right path of the various policy instruments that exist in Indonesia and if Indonesia energy security is resilient.
“Various policy schemes that currently exist put our energy security index in the ‘resistant’ category. We haven’t been able to reach the ‘very resilient’ category because of several things, including our energy (oil) imports are still high, our energy infrastructure (grid) still needs to be improved, and our NRE mix is still low,” Djoko explained.
Djoko added that the government needs to resolve these issues to ensure Indonesia’s energy security and to reduce GHG emissions from the energy sector. In this way, Indonesia’s commitments to various international agreements are fulfilled.
Approved! The New Revised Solar Rooftop Regulation Targets the development of 3.6 GW of Rooftop Solar by 2025
The issue of government policies of the Minister of Energy and Mineral Resources Regulation No. 49/2018 in terms of rooftop solar in Indonesia since 2018 has proven to have increased the adoption of PV mini-grid roofs from initially only 609 customers in 2018 to 4,262 customers in 2021. In 2021, the Minister of Energy and Mineral Resources (MEMR) revised regulation No. 49/2018 to Regulation No. 26 of 2021.
“The implementation of the MEMR Regulation No. 26 of 2021 is expected to boost the development of the rooftop solar PV market, especially with the stipulation of a target of 3.6 GW of rooftop solar power in the National Strategic Project (PSN),” said Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR) in the Indonesia Solar Week 2022 (10/2/2022). He is also the Chairman of the Indonesian Solar Energy Association (AESI).
The MEMR Regulation No. 26 of 2021 is the third revision of MEMR No. 49/2018. The Minister of Energy and Mineral Resources Regulation No. 26 of 2021 has been issued since August 20, 2021. After experiencing a delay in ministerial approval finally, it was agreed to be implemented on January 18, 2022. The following is a comparison of the improvement in the provisions of the three MEMR Regulations:
| Revision | Rooftop Solar MEMR Regulation |
||
|---|---|---|---|
| No. 49/2018 | No. 16/2019 | No. 26/ 2021 | |
| Electricity export | 65% | As in MEMR Ministerial Regulation No.49/2018 | 100% |
| Availability of export-import kWh meters | Max. 15 business days after SLO (Operation Worthiness Certificate) received by PLN | Max. 15 business days after SLO (Operation Worthiness Certificate) received by PLN | |
| Period for setoff of the unused credit | Max. 3 months | 6 months | |
| Timeline for solar rooftop Application | Max.15 days | 5 business days without an adjustment to the Electricity Sale and Purchase Agreement (PJBL) and 12 days with an adjustment to the PJBL | |
| Costumer | Only PLN’s Customer | PLN customers and customers in non-PLN Business Areas (IUPTLU holders). | |
| Industrial Customer | Subject to capacity charge and emergency electricity purchase with the formula: Capacity cost = total inverter capacity (kW) x 40 (minimum load limit of electricity in one month) hours x electricity tariff. then multiplied by the electricity tariff. | Subject to capacity charge with formula : Capacity cost = total inverter capacity (kW) x 5 (five) hours x electricity tariff. | Subject to capacity charge with formula : Capacity cost = total inverter capacity (kW) x 5 (five) hours x electricity tariff. |
| Online reporting | NA | NA | Availability of submitting the application, reports , and supervision of the solar rooftop program; |
| Complaint Center | NA | NA | Available |
| Others | the possibility for trading carbon credits generated from solar PV systems | ||
The government hopes that the improvement of the rooftop solar regulation will encourage the achievement of the target of 3.6 GW of PV mini-grid by 2025. The target of 3.6 GW of rooftop solar is the MEMR proposal that is included in the National Strategic Project as stated in the Coordinating Ministry for Economic Affairs Regulation No. 7 of 2021. The potential positive impacts of the projected growth of 3.6 GW Rooftop PLTS include absorbing 121,500 workers and reducing Greenhouse Gas (GHG) emissions by 4.58 Million Tons of CO2e.
As part of the implementation of the MEMR Ministerial Regulation No. 26/202, Fabby encouraged the government to immediately establish a solar rooftop Customer Center per article 26 of the MEMR Ministerial Regulation. In addition, Fabby hopes that the solar rooftop application process and permits are clear and concise following the latest provisions. On the other hand, problems that are often faced by potential customers such as the length of time to obtain an Exim meter can also be overcome, thereby increasing the installation of rooftop solar power plants in the future.
Katadata | Coal Dependency Holds Back Indonesia’s Energy Transition
Then the hydropower energy, the potential which is up to 94.5 GW, but only 6.1 GW has been utilized. In addition, according to research by the Institute for Essential Services Reform (IESR), Indonesia’s geothermal energy potential is 29.5 GW, but only 2.3 GW of which has been exploited.
Read more at Katadata
PLN Should Follow Global Transformation to a Cleaner Energy
Kendari, 7 February 2022 – The world is facing major changes in response to the increase in the earth’s temperature which has increased by 1.1 degrees Celsius since the pre-industrial era. Various global commitments have been agreed to limit the increase in the earth’s temperature to no more than 2 degrees Celsius by the middle of this century. The rise of the global temperature is caused by carbon emissions produced by burning fossil fuels, one of which is in the energy sector.
Indonesia is committed to reducing its emissions by 29% with its own efforts and 41% with foreign assistance, and achieving net-zero emissions by 2060 or sooner.
Dr. Kuntoro Mangkusubroto, senior energy observer, during the “Seminar Pertambangan” – mining seminar, celebrating Indonesia’s National Press Day, said that the energy sector plays a crucial role in reducing greenhouse gas emissions.
“But keep in mind, it doesn’t mean that the net-zero emission issue will only become a burden for PLN because it is related to energy issues. It needs collaboration from various parties to ensure that the 2060 target is achieved,” he concluded, ending his keynote speech.
PLN has a big role in creating a market for renewable energy. To achieve the target of renewable energy, the involvement of the private sector is needed. Therefore, policies and a conducive investment climate need to be orchestrated.
Dadan Kusdiana, Director General of EBTKE at the Ministry of Energy and Mineral Resources said that Indonesia is still aligned and on track to meet the international agreement commitments, but there are options for various accelerations.
“We have compiled a national roadmap to achieve net-zero emissions by 2060, and we keep looking for possible options to accelerate existing targets,” he stressed.
Specifically from the electricity sector, Evy Haryadi, Director of Corporate Planning at PLN, stated that his party was currently in a dilemma. On one hand, currently available power plants at affordable prices are fossil generators (coal power) that produce high emissions, replacing them with renewable energy plants requires a huge investment.
“We see a declining trend in electricity prices from renewable energy such as solar and wind currently ranging from 18-21 cents per kWh, compared to coal (6-8 cents/kWh) for now electricity from renewable energy is still more expensive.”
Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR), reminded that PLN needs to be careful in looking at investment trends in the electricity sector. The commercial and industrial sectors make clean energy the main need and prerequisite for investing in a country.
“Coal-fired power plants are not the cheapest power plants. Government subsidies through the DMO (Domestic Market Obligation) scheme keep coal prices at USD 70/ton, making the price of electricity from PLTU look cheap. Even though the price of coal in the market currently reaches USD 150/ton,” he explained.
Fabby continued, if the coal price of USD 150/ton is transferred to PLTU, the cost of electricity generation will increase by 32% – 61%.
Energy system disruption is happening all over the world. To ensure the reliability, affordability and sustainability of Indonesia’s energy system, PLN must carry out a transformation. This transformation will also reduce the risk of stranded assets for PLN and IPP (Independent Power Producer). As technology develops, it is estimated that in the next few years the cost of installing solar PV and batteries will be cheaper than the operating costs of a coal-fired power plant.
To achieve the common goal of achieving net-zero emissions by 2060 or sooner, increasing the capacity of renewable energy must be carried out. The currently operating coal power plant needs to be managed wisely and gradually reduced. The Indonesian government’s plan to phase down 9.2 GW of coal-fired power plants through the Energy Transition Mechanism scheme is the right step, but the government has the opportunity to take more aggressive steps.
Indonesia Needs Inter-island Electricity Interconnection for 100 Percent Renewable Energy Development
Jakarta, 26 January 2022 – The energy sector which is dominated by fossil energy accounts for ⅔ of global emissions. In order to reduce greenhouse gas (GHG) emissions exponentially, massive use of renewable energy is an important thing to do. One of the efforts to empower 100 percent of the technical potential of renewable energy, which is widely spread across all provinces in Indonesia, is the construction of an interconnection of the archipelago’s electricity network.
Jisman Hutajulu, Director of Electricity Program Development at the Ministry of Energy and Mineral Resources, in the HK Experts webinar (26/1/2022), stated that the government through the Ministry of Energy and Mineral Resources has plans to connect the grid system between islands in Indonesia.
“This is to support the 2060 net-zero emission plan. One of the things we want to encourage is the use of NRE, but many NRE sources are far from the many demand sources in Java. So we have to transmit that energy to our load center,” Jisman explained.
Jisman said that his party encouraged PLN to complete interconnections within major islands in Indonesia, which is expected to be fully completed in 2024, later to be connected between islands gradually.
Jisman admits that building this transmission system takes a lot of investment. So the ministry is making a study about priority, to analyze and determine which transmission will be built first. Furthermore, Jisman also mentioned the potential inclusion of this transmission development plan in the Problem Inventory Draft (DIM) of the NRE Bill to ensure the priority of the work.
On the same occasion, Fabby Tumiwa, Executive Director of IESR, believes that this interconnection system should be seen as an investment, not a burden from the choice of shifting to clean energy.
“According to IESR, Indonesia has abundant renewable energy potential. For solar alone, the potential can reach 7,700 GW with the largest potential based on land suitability, located in East Kalimantan, Central Kalimantan, and South Kalimantan,” said Fabby.
Fabby also revealed that the initial investment needed for grid interconnection development until 2030 is still relatively small, around USD 3.3 billion because there is no inter-island integration yet. However, the required investment will increase in 2040 and 2050, respectively at USD 34.8 billion and USD 53.9 billion.
Other benefits that Indonesia can enjoy from inter-island grid interconnection include increased reliability and concentrated power reserves.
“For instance, excessive power reserves in Sumatra can be sent to Bangka, and vice versa,” said Fabby.
In addition, an integrated inter-island network can reduce investment requirements for developing new power generation. According to him again, the interconnection of the grid will create a diversity of generation mix and supply security, which is different from fossil energy systems that only come from one energy source. Furthermore, Fabby explained that if this interconnection system is already running, the cost of generating renewable energy will decrease by 18% – 46% by 2030.
Overseeing the Indonesia Government’s Strategy in Energy Transition in 2022
Jakarta, 18 January 2022 – Entering 2022, the Ministry of Energy and Mineral Resources shared Indonesia’s energy transition strategy in the “Press Conference on 2021 Performance Achievements and the 2022 Work Plan for Energy and Mineral Resources and the EBTKE Subsector”. The Institute for Essential Services Reform (IESR) views that even though the direction of the energy transition is becoming more evident, it is crucial to speed up the energy transition to reduce GHG emissions and align with Paris Agreement pathways to limit the earth temperature well below 1.5 degree Celsius. Moreover, some overlapping strategies need to develop in a more focused roadmap, such as Dimethyl Ether (DME) utilization, gas grids, and induction cooktops to meet household energy needs.
In the 2021-2030 Energy Transition Roadmap, the government focuses on new and renewable energy power plants’ construction which reach 20.9 GW, while the solar rooftop is targeted at 3.6 GW. The solar rooftop construction will be massive in 2031-2050 with a total amount of 279.2 GW.
Based on the IESR study entitled “Deep Decarbonization of Indonesia’s Energy System”, the construction of renewable energy power plants should be accelerated in the 2021-2030 period to achieve the renewable energy mix target, and reach peak emissions in the electricity sector before 2030. In addition, there is a need for at least a 14-fold increase in the total renewable energy capacity in 2020, with around 117 GW coming from solar rooftops and 23 GW from other renewable energy plants.
The government’s report on the achievement of new and renewable energy power generation capacity until 2021 reaches 11,152 MW. Fabby Tumiwa, Executive Director of IESR, feels that the target for adding renewable energy generating capacity has always been below the government’s target since 2019 and is not on track with the renewable energy mix target of 24 GW by 2025.
“The reasons for the low obtainment of renewable energy plants are structural. For instance, the Minister of Energy and Mineral Resources No. 50/2017 makes renewable energy projects unbankable, PLN does not carry out the regular and on schedule basis of the procurement of renewable energy plants, the lack of competitive domestic financing support, and the delay in project realization due to the pandemic,” said Fabby Tumiwa, Executive Director IESR.
Highlighting the investment target for the new and renewable energy sector in 2022, the government has set an investment entry of USD 3.9 billion, up 2.6 times from the previous investment achievement of USD 1.51 billion in 2021. Deon Arinaldo, Program Manager of Energy Transformation, IESR, thought that although the target has almost tripled, it is a small amount to fund efforts to decarbonize Indonesia’s energy system.
“Based on the study of the Indonesia Energy Transition Outlook 2022, investment in renewable energy for the electricity sector alone requires 11.1 billion USD per year for the next decade. Several renewable energy policies and regulations that should have been released last year, need to be finalized immediately to increase investor confidence and the renewable energy investment climate. Renewable energy investments outside of PLN’s RUPTL (National Electricity Supply Business Plan), such as solar rooftop, also need to be fully supported to attract investment from the beginning of this year, “added Deon.
Furthermore, the government’s strategy to maintain fossil energy subsidies will slow down the pace of energy transition in Indonesia. As well as increasing the burden on the state, it is also an easy trap for Indonesia to get into the fossil energy crisis.
“Reflecting on the coal energy crisis earlier this year, it can be seen that the use of fossil energy such as coal and subsidized support (in the form of DMO) also does not guarantee the country’s energy security, but instead creates distortions in the price of electricity generation. The price of electricity generation from coal-fired power plants looks cheaper than it should be and does not create a level playing field for renewable energy,” said Deon.
The government’s strategy to accelerate the national energy transition is constrained by the fact that the Minister of Finance has not yet approved the Draft Presidential Decree for the Purchase of Renewable Energy. Deon believes that there needs to be strategic coordination between ministries to support the acceleration of achieving the carbon-neutral target so that regulatory support that is considered critical should be issued immediately and run effectively.
“Apart from issuing regulations, effective implementation is important, but this is the opposite. For example, Ministerial Regulation 26/2021 regarding rooftop solar power plants, which should be able to support the achievement of the 900 MW rooftop solar power plant target in 2022 according to the MEMR target, however, was delayed earlier this year,” said Deon.
Besides the regulatory perspective, IESR sees the synergy of inter-ministerial carbon neutral targets as important. Reviewing the targets and realization of electric vehicles in 2022, the Indonesia Energy Transition Outlook 2022 found two different targets in the two ministries. The Ministry of Industry plans to produce 750,000 units of LCEV (low carbon emission vehicle), consisting of electric cars and 2.45 million units of electric motorcycles by 2030. Meanwhile, the Ministry of Energy and Mineral Resources (ESDM) targets 2 million cars, electric vehicles and 13 million electric motorcycles by 2030. Different targets and roadmaps in the development of electric vehicles will make it difficult to see a coherent and consistent effort by the government to increase the penetration of electric vehicles in the country.
“An integrated and well-designed national electric vehicle roadmap must be created. Alignment between the electric vehicle (EV) roadmap of the Ministry of Industry and the Ministry of Energy and Mineral Resources, for example, will increase the confidence of EV players. It also will maximize economic benefits for Indonesia in the form of an industrial value chain formed from the transition process from internal combustion engine (ICE) vehicles to EVs,” closed Deon.
Indonesia’s Energy Transition Overshadowed by Government Uncertainty
Jakarta, December 21, 2021 – Closing 2021, the Institute for Essential Services Reform (IESR) has launched its annual report entitled Indonesia Energy Transition Outlook (IETO) 2022. Since 2017, IETO – previously called Indonesia Clean Energy Outlook (ICEO), has consistently explained the development of the energy transition in Indonesia in various sectors as well as provided projections of Indonesia’s energy transition in 2022. For the second year in a row, IETO has specifically analyzed Indonesia’s energy transition readiness.
At a global level, 2021 was marked by some important events such as the Climate Summit hosted by the US president, Joe Biden, who called for the whole world to take more ambitious steps to tackle the climate crisis. The G20 Summit and COP 26 reiterated that the commitments and actions to mitigate the climate crisis of all countries are still not sufficient to suppress the increase in the global average temperature of 1.5 degrees Celsius. More ambitious and aggressive climate mitigation actions are needed.
Although not yet in line with the Paris Agreement, Indonesia has begun to show a quite progressive political commitment by setting a net-zero target by 2060 or earlier, plans to retire 9.2 GW coal-fired power plants early, and the issuance of a new RUPTL which gives the share of renewable energy up to 51.6%. According to IESR, this commitment can be seen as a breath of fresh air for the development of renewable energy in Indonesia. However, this still has not been able to accelerate Indonesia’s energy transition, and achieve the Paris Agreement target of achieving carbon neutrality by the middle of this century.
Julius Cristian, the lead author of the IETO 2022 report, saw some uncertainty from the government.
“For example, although the latest RUPTL has accommodated about 50% of renewable energy or around 20 GW when compared to the need for decarbonization which reaches 130 GW, this plan is certainly far from what is needed. In addition, the government is still relying on strategies that we think are not feasible, such as the use of nuclear and CCS which are more expensive than renewable energy,” he explained.
The IETO 2022 assesses that Indonesia is capable of achieving net-zero by 2050. To achieve this, Indonesia must reach peak emissions before 2030, and after that start reducing them. One of the implications of this is that Indonesia is no longer allowed to build CFPPs and must immediately start retiring old CFPPs.
Considering the potential and availability of resources, solar PV will be the backbone of Indonesia’s decarbonization. However, its growth in 2021 was only around 18 MW, even though the demand will reach 108 GW in 2030, or an average increase of 10 GW per year.
Handriyanti Diah Puspitarini added that there has been a slight improvement in terms of policy quality and social (public acceptance) regarding the energy transition, but commitment from the government and the renewable energy investment climate still needs a lot of improvement.
“We need to see how the implementation of various regulations that will come and have been issued will be implemented. The government must also realize that the public has begun to be aware of this issue and support the energy transition, so the government should also support this already high public support,” explained Handriyanti.
Herman Darnel Ibrahim, a member of the National Energy Council (DEN), stressed the importance of renewable energy to grow exponentially to meet electricity demand and meet international agreement targets. Although throughout 2021 there is a momentum for growing awareness to transition Indonesia’s policy direction, it is still uncertain where it will go.
“For example, RUED, although the regions already have RUED, the authority to execute is centralized in PLN and Pertamina, so these regions have RUED but cannot affect the results,” said Herman.
Faela Sufa, Southeast Asia Director of ITDP, sees that the transportation sector can be one of the drivers of the renewable energy ecosystem in Indonesia.
“For example, for the electrification of public transportation, we need to synchronize together and identify what incentives need to be given so that it can be more tangible in energy use and coordination with various sectors related to renewable energy for electrification,” explained Faela.
Yusrizki, Chairman of the Standing Committee of the Indonesian Chamber of Commerce (KADIN) for New and Renewable Energy, said that KADIN has declared it will become a net-zero organization in 2060 and is actively encouraging its members to have a-net zero target.
“In the 2022 G20 summit, we are expected to have 100 Indonesian companies that have pledged a net-zero target and this is a very ambitious target. We start from education, assisting -helping them to make their agenda-, to pledge their commitment,” Yusrizki explained.
Meanwhile, Arief Sugiyanto, Vice President of PLN’s RUPTL Control, explained that his party is currently trying to meet the energy mix target of 23% by 2025.
“The target of 23% NRE in 2025 is indeed a formidable challenge. One of PLN’s strategies is to change diesel power generators in isolated areas gradually with NRE generators available in those locations,” said Arief.
Net-Zero Emission Agenda Private Sector Opportunity to Increase Competitiveness
Jakarta, 14 December 2021 – 2021 is considered as a progressive period marked by a number of important events and the birth of various commitments aimed to reduce the impact of climate change. A number of heads of state in the world are competing to show their leadership in dealing with climate change. This is not surprising because according to the report from the Intergovernmental Panel on Climate Change (IPCC) AR6, in August 2021, it was stated that the time for us to repress the increased global temperature below 1.5 degrees Celsius is less than a decade. Our climate action in a couple years to go will determine whether we will succeed in achieving the climate target under the Paris Agreement, which is to achieve net-zero emissions by the mid of this century.
To explore perspectives and encourage collaboration from various parties, the Indonesia Business Council for Sustainable Development (IBCSD) held a webinar titled “What Net Zero Emission Means for the Private Sector” on Tuesday, December 14, 2021.
Indonesia through the Ministry of Environment and Forestry has updated its NDC and equipped it with a strategic document, Long Term Strategy – Low Carbon Climate Resilience aligned with the Paris Agreement (LTS – LCCR). Indonesia also announced net-zero emissions by 2060 (or sooner). With climate change increasingly critical, the Government of Indonesia is urged to accelerate its net-zero emission target.
Laksmi Dewanthi, Director General of Climate Change Control at the Ministry of Environment and Forestry, said that the government is aware of the need to accelerate net-zero emissions.
“So, if we want to achieve net-zero faster, we ask all stakeholders to take more roles in Indonesia’s net-zero plan,” she said.
Medrilzam, Director of the Environment at National Development Agency (Bappenas) added, collaboration and concrete actions from all parties will be the key to achieve the net-zero emission target in Indonesia. “The government needs to prepare enabling conditions so that cooperation with the private sector and other parties can run well,” he said.
Medrilzam also emphasized that based on the Bappenas study, low carbon development results in higher economic benefits than business as usual.
Not only for the government, there are various benefits for corporations if they have a net-zero emission target.
“Aligning to climate science is good for business. Because apart from being in line with the government’s agenda, implementing climate commitments also increases the competitiveness of companies. Companies are expected to continue to seize such opportunities,” explained Amelie Tan, Regional Lead for the Carbon Disclosure Project.
On the same occasion, the Executive Director of IESR, Fabby Tumiwa, emphasized that the government needs to intervene in at least four areas to encourage private sectors to move towards low-carbon businesses. The four sectors include (1)policies and regulations, (2) low-carbon technology and infrastructure, (3) innovation, and (4) raising market and consumer awareness to choose low-carbon products.
“Our study shows that the energy system in Indonesia can technically and economically achieve zero emission by 2050 with 4 strategies, namely increasing renewable energy capacity, reducing fossil fuels, electrification, and using clean fuels,” he said.
Fabby also added the importance of carbon emission disclosure for corporations who are committed to reducing their emissions so that the wider community knows which companies have commitments to control climate change.
