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.

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.

Indonesia’s Energy Transformation to Zero Emission

Fabby Tumiwa dalam acara Green Press Community 2023 pada Rabu (8/11/2023).

Jakarta, November 8, 2023 – The global climate crisis is humanity’s biggest challenge in the 21st century. The increase in global temperatures caused by greenhouse gas emissions is causing severe impacts such as extreme weather, increased extreme temperatures, rising sea levels, and harm to ecosystems. Indonesia, as one of the signatories of the Paris Agreement, has committed to reducing emissions. Indonesia has also submitted an Enhanced Nationally Determined Contributions (NDCs) document by increasing the greenhouse gas (GHG) emission reduction target by about 2%. Previously in the Updated NDC, the unconditional emission reduction target was 29% to 31.89% by 2030, and with international assistance (conditional) it rose from 41% to 43.2%.

Reflecting on Indonesia’s latest ENDC, Executive Director of the Institute for Essential Services Reform (IESR), Fabby Tumiwa, explained that Indonesia’s climate target is not compatible with the ambition of the Paris Agreement to maintain the earth’s temperature rise at a level of 1.5C, and does not reflect the urgency of avoiding climate change whose impacts are now sweeping across the world.

“Based on the assessment conducted by Climate Action Tracker (CAT), Indonesia’s greenhouse gas (GHG) emission reduction target is considered highly insufficient, leading to 2.4ºC. To be compatible, Indonesia’s GHG emissions must reach 850 MtCO2 in 2030 and NZE in 2050-2060. To do this, we need to reduce emissions in the energy sector more ambitiously,” explained Fabby Tumiwa at the Green Press Community 2023 event on Wednesday (8/11/2023). 

 

Fabby said that accelerating the use of renewable energy plays a key role in reducing GHG emissions. Based on an IESR study titled Beyond 443 GW Indonesia’s Infinite Renewable Energy Potentials, the technical potential of renewable energy in Indonesia reaches nearly 8,000 GW, with solar energy having the largest potential of around 6,700-7,700 GW. However, the energy transition requires regulatory, techno-economic, investment, and social support.

 

“This huge potential, if utilized optimally, will be able to meet all energy needs in Indonesia. IESR has projected that the country will require 1600 GW of energy capacity by 2050. However, this requirement can be met through 100% renewable energy sources, ultimately leading to zero emissions by 2050,” said Fabby Tumiwa. 

 

The energy transition can increase renewable energy capacity and create new opportunities and an equitable and inclusive energy transformation. Moreover, decarbonization and renewable energy technologies have become cheaper and more affordable. For this reason, Fabby encourages the government to immediately make a more ambitious plan to prevent the climate crisis in Indonesia.

Tracking the Advancements of Indonesia’s Electric Vehicle Battery Industry

Over the present decade, the popularity of electric vehicles (EVs) has witnessed a significant increase with year-over-year sales showing exponential growth. According to reports from Bloomberg New Energy Finance (BNEF), there are already almost 20 million EVs on the road until the end of 2021. To enhance energy efficiency, ensure tailpipe emission reduction, and decrease reliance on oil fuels, EVs have become an attractive choice for both stakeholders and the general public. Taking into account the prevailing trend and several additional benefits, Indonesia, being the largest nickel reserves country, through President Regulation 55/2019 regarding the BEV acceleration program, has taken proactive measures to participate in the global EV industry, particularly in the battery sector. Following this regulation, the Ministry of Industry was established outlining the industry roadmap and local content requirements (LCR) through Ministerial Regulation 20/2020.

As of 2023, the weighting of the Local Content Requirement (LCR) in the Indonesian electric vehicle (EV) industry has adjusted. The assessment of the assembly process, previously at 20%, has been reduced to 12%, with the remaining 8% being reallocated to the calculation of the main components, including the battery (35%), electric motor (12%), and chassis (11%). The importance of LCR in Indonesia is relevant in the context of supplying for government procurement or projects. In support of the growth of the domestic EV industry and attracting investment, the Indonesian government has implemented various initiatives, including the President Instruction 7/2022 for public procurement and subsidies plan for the purchase of LCR-compliant electric vehicles.

The weight of batteries in electric vehicle (EV) industries highlights the importance of utilizing domestically produced batteries for improving the overall LCR. The current state of the battery industry, however, poses challenges for mass production. The Institute for Essential Services Reform (IESR) team sought to understand the gap in technological capabilities within the domestic battery industry. To achieve this objective, the team conducted exclusive interviews across the upstream, midstream, and downstream sectors of the industry. The purpose of these interviews was to evaluate the industry’s preparedness in meeting both government targets and the demands of the EV market. The comprehensive assessment aimed to gain a thorough understanding of the domestic battery industry.

Battery EV production flow

Upstream sector industries

The upstream sector in Indonesia’s EV industry is rapidly growing, ready to meet market demands. The government has reinforced this growth with MEMR Regulation 11/2019, which governs mineral and coal mining and bans nickel ore exports. Despite the controversy, the regulation has led to the construction of two HPAL nickel refineries and 5 more are in the works. According to the Indonesia Nickel Miners Association, there is yearly demand for 50.57 million tons of saprolite and 1.2 million tons of limonite ore for the HPAL plants, expected to produce nearly 1 million MHP/MSP and 316,000 tons of derivative products including 140,000 tons of Cr concentrate, 136,000 tons of Nickel Sulfate, and 19.5 tons of Cobalt Sulfate. One developer has even introduced its refining technology, the Step Temperature Acid Leaching (STAL) process, designed to refine limonite ore with a nickel content of less than 1.6%, yielding MHP as the final product at its prototype plant.

Midstream sector industries

The lithium-based battery sector has seen slow growth due to high investment needs and limited experience. Aside from three major investment plans for battery production (IBC-LG, IBC-CBL, and Indika-Foxconn) that are underway, IESR has gathered information on existing and growing companies. These companies have production capacity for battery cells, ranging from 30 to 1 thousand cells per day. An interesting development is a start-up from Universitas Sebelas Maret that has a partnership with another start-up from the same university for active material and precursor production.

To align with NCM or NCA nickel-based cathodes, the upstream sector’s battery precursor production process needs to be continued domestically. However, local battery companies use LFP for their business due to safety and long life-cycle considerations, even though it has lower energy density compared to nickel-based options. As a result, class 1 nickel production in Indonesia’s upstream sector is not yet sufficient to meet the needs of the cathode or battery cell industry within the country.

Downstream sector

As one of the world’s largest producers of motorcycles, Indonesia has no major obstacles in assembling EVs. The frame or chassis is the most established component to be produced domestically. Meanwhile, some companies have produced electric motors (powertrains) and supplied E2W production for state-owned enterprises.

However, the recycling or reuse of battery cell waste for second-life batteries is yet to be fully developed. But, researchers at Universitas Gadjah Mada have taken the initiative by starting the development at a laboratory scale. Despite limited EV usage in the country, this sector is expected to be promising due to its potential to extract rare materials like lithium and easy access to metals required for battery production.

The Potential Role of the Industry and Community Sectors in Accelerating a Just Energy Transition

Semarang, 10 November 2022 – The energy transition has become the focus of many parties lately. It’s not only the government that has the responsibility to provide clean and affordable energy for the entire community, the industrial sector is also starting to switch to clean energy through various efforts. For companies, today’s global product competitiveness is also determined by how the manufacturing process is carried out efficiently and by using sustainable energy sources. The collaborative action of various sectors in the use of renewable energy will support the acceleration of the energy transition on a national level.

To take a closer look at various initiatives from the industry and community sectors, the Central Java Provincial Energy and Mineral Resources Office in collaboration with the Institute for Essential Services Reform organized the “Jelajah Energi Terbarukan” activity on November 10-11 2022. This activity visits several destinations focused on industries and villages that utilize renewable energy potential. This is the second activity, after last June a similar activity was carried out with a focus on different destinations.

The journey started by visiting CV Jaya Setia Plastik, in Demak, to see how the children’s toy industry saves electricity by installing a 470 kWp on-grid rooftop solar PV.

PLTS Atap di CV Jaya Setia Plastik
PLTS Atap di CV Jaya Setia Plastik

“Currently, what is actually installed on our roof is 1,300 kWp, but we have not used the other 470 kWp connected to PLN because we are currently constrained by regulations that limit the installation of rooftop PLTS to a maximum of 15% of the total installed power,” Wahyu representative of CV Jaya Setia Plastik explained. 

Djarum Kretek Oasis, which is located in Kudus, Central Java, also experienced similar challenges. Having several types of green industry initiatives such as the use of biomass boilers, rooftop PLTS, water storage ponds equipped with wastewater treatment facilities, Djarum is still determined to continue to increase its renewable energy capacity.

“Our roof area can still accommodate more solar PV, but due to regulatory limitations we have not been able to add capacity,” said Suwarno, Deputy General Manager Engineering at PT Djarum.

The limitation of rooftop PV capacity has become a concern of various parties because it has become one of the obstacles for consumers, especially the industrial sector, to install or increase the capacity of their rooftop solar. Currently, the Ministry of Energy and Mineral Resources and PLN are in the process of revising the Minister of Energy and Mineral Resources’ decree no. 26/2021 which regulates the installation of rooftop PV for PLN consumers.

Apart from utilizing solar rooftop, Djarum Oasis has also designed a sustainability scheme for its factory comprehensively covering various aspects, one of which is by utilizing the pruning trees of ‘trembesi’ (Samanea saman) planted on a number of toll roads as part of its CSR, as wood chips for biomass boiler fuel.

The first day’s journey continues towards the waste-to-energy plant Putri Cempo, which is in the Surakarta area. This plant has signed a Power Purchase Agreement (PPA) with PLN and will be on COD at the end of 2022. Elan Suherlan, Director of PT SCMP (Solo Metro Citra Plasma) explained, Putri Cempo waste-to-energy plant exists to overcome the waste problem in Surakarta city which can no longer be accommodated by the Waste Processing Site. PT SMCP, which won the tender for the plant construction, started its construction in 2021.

“Later Putri Cempo waste-to-energy plant will produce 5 MW of electricity and will be distributed to PLN,” said Elan.

What needs to be observed is a clear calculation of the greenhouse gas emissions resulting from this waste-to-energy plant.

The first day of “Jelajah Energi” was closed by visiting Krendowahono Village, which has utilized biogenic shallow gas for 30 households. Biogenic gas is produced from organic compounds such as plants and grasses that decompose with the help of bacteria. Because it comes from residues of organic compounds, biogenic gasses are generally found in shallow soil layers. Since its amount is relatively small and dispersed, biogenic gas must be compressed (increased pressure) so that it is easy to flow and use.

Several villages in Central Java have quite a lot of potential for biogenic gas, including Gabus Village, in Ngrampal District, Sragen, Rajek Village, in Grobogan, Bantar, and Pegundungan Villages in Banjarnegara, which can be used as an alternative energy source for cooking. The biogenic gas utilization installation is also relatively low and can be used communally.

Solihin, head of RT 6, Krendowahono Village, explained that the discovery of swamp gas started with residents who were going to make a well for a water source but when water was found at a certain depth, the water could actually catch fire.

“After we reported it and a team came to check it, turned out that this gas can be used for households,” he said.

Mrs. Uni, one of the beneficiaries of the swamp gas, admitted that by using the swamp gas she could save on cooking fuel quite significantly.

“Usually in a month I can use 4 of 3 kg of LPG gas, now it’s only 1,” she said while showing her kitchen. Uni admits that she still uses LPG gas as a fuel reserve for cooking because the stove from swamp gas only has 1 burner.

Currently the local communities are designing an operational system for the swamp gas network, starting from the operating hours of the machine, the amount of contributions, and maintenance costs.

COP27: The Race to Zero Emissions in 2050

Egypt, November 9, 2022 – The ambition of countries’ climate commitments to achieve their net zero is crucial by the middle of this century. The earth’s temperature has risen significantly to 1.1 degrees Celsius after pre-industrial levels. Measuring the policies and strategies of countries to achieve zero emissions needs to be done to encourage climate mitigation in line with the Paris Agreement.

Energy Transformation Program Manager of the Institute for Essential Services Reform (IESR) , Deon Arinaldo, at the COP27 side event in Sharm El-Sheik, Egypt, with the theme “Net-0 scenarios and How to Get Them Right” organized by the International Network of Energy Transition Think Tanks (INETTT) explained, Indonesia has realized the urgency of the energy transition. It can be seen from the existence of a low-carbon development strategy from the Ministry of National Development Planning of the Republic of Indonesia. The plan will show significant benefits when Indonesia achieves its conditional Nationally Determined Contribution (NDC) target by 2030. It starts with higher economic growth, job creation, and improving the quality of health.

However, Indonesia still provides significant fossil energy subsidies. Deon emphasized that fossil energy subsidy policies differ from efforts to make an energy transition and achieve decarbonization in the middle of this century.

“The Indonesian government’s policy of providing subsidies to shield the public will burden the state budget, especially with rising commodity prices in 2022. Energy subsidies are an “obstacle” to energy transformation, reformulation of energy subsidies is a priority agenda for the government,” said Deon.

This needs to be done by considering the best policy scenario for reducing emissions in the energy system, based on the IESR study entitled “Deep Decarbonization of Indonesia’s Energy System.” Deon recommends three stages of the best policy scenario: bending the greenhouse gas emissions curve and peaking emissions by 2030. Then,  removing a significant share of emissions through energy system transformation by 2045, achieving zero emissions through an increase in green synthetic fuel production, and decarbonize industry sector by 2050.

“With this strategy, achieving zero emissions by 2050 is technically and economically feasible. It opens up opportunities to improve climate policy. Decarbonization efforts have to simultaneously ramp up the overall energy system. This decade (2020-2030) is the critical period,” explained Deon.

Nhien Ngo To, Vietnam Initiative for Energy Transition, said Vietnam had implemented a strategy of reducing emissions to net zero emissions by 2050. The plan sets the overall goal of adapting proactively and effectively. Then, minimize the vulnerability and damage caused by climate change.

“Unfortunately, there are still some challenges to face. Such as inefficient use of energy, high energy intensity, lack of financing, lack of skilled workforce for energy transition, and gaps in the coordination of key stakeholders,” said Nhien Ngo To.

Energy Programme Manager and Climate Finance Lead at GreenCape, Jack Radmore, said South Africa has a reasonably mature policy sector and plans related to a green economy and decarbonization. It could be seen in the national climate change response strategy since 2004, which has been improved and adapted over the years.

“South Africa has established a committee to accelerate the energy transition. The government has also adopted more ambitious emission reduction targets. Considering that 90 percent of electricity in South Africa still depends on coal-fired power plants with more than 600,000 people working in the mining sector,” stated Jack Radmore.

Al Kumba, Energy Transition Director, SHURA, stated that Turkey had taken significant steps in terms of decarbonizing the electricity sector over the past decade. Currently, 50 percent of installed power in Turkey comes from renewable energy. In terms of power generation, around 40 percent comes from renewable energy. However, Turkey’s energy mix is ​​still dependent on fossil fuels, only about 16 percent of which is supplied by renewable energy.

“Decarbonization is important for Turkey. Several concrete steps to realize decarbonization, such as Turkey has ratified the Paris Agreement in October 2021 and announced its ambition to achieve carbon neutrality by 2053. Turkey also has a green action plan to build its ports more environmentally friendly and expand forests and protected areas. Turkey is one of the countries that take the lead in fighting desertification and erosion,” said Al Kumba.