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.

Driving the Energy Transition from the Sub-National Level

Semarang, 19 December 2023 – The annual Climate Summit (Summit) held in Dubai in November – December 2023 resulted in a number of global agreements, one of which was an agreement by 118 countries to transition and abandon fossil fuels. This agreement was born partly due to pressure from countries experiencing the impacts of climate change. 2023 was recorded as the hottest year in history.

In his opening speech for the Central Java Renewable Energy Acceleration Forum, Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR) stated that the simplest thing to ensure the energy transition occurs is to add renewable energy capacity to the energy mix. To massively add renewable energy capacity requires significant investment costs and comprehensive enabling conditions.

“The complex and expensive energy transition can only occur if there are enabling conditions, including rules and regulations, support for public and private partnerships, community initiatives, and investment. Currently, to achieve the RUED target, regional funding capacity is still insufficient, so it is necessary to encourage investment,” said Fabby.

Head of the Central Java Province Energy and Mineral Resources Service, Boedyo Dharmawan, said that his party had contributed to achieving the target of 23% of the national renewable energy mix by 2025.

“In 2023, Central Java Province achieved a regional renewable energy mix of 21.2%. We will continue to encourage this capacity addition in the coming years. Apart from that, we also encourage energy conservation practices through energy and water saving movements, in government agencies and also in business entities, including energy audits,” he said.

Tavip Rubiyanto, Middle Expert Policy Analyst on Energy Substances and Mineral Resources, Directorate of SUPD I, Directorate General of Regional Development, Ministry of Home Affairs, highlighted the role of the entire OPD sector in matters of managing renewable energy in the regions.

“From the start, the ESDM Service had to coordinate with related agencies such as Environment, Transportation and Planning Services. So that RUED can be integrated into the RPJMD. “It does take effort to convince and provide understanding for Bappeda to support this EBT target, but that is what must be done,” said Tavip.

In terms of investment trends, Indonesia is becoming a global investment destination even though currently there are still several investment challenges. This was conveyed by Purwo Wiyatmanto, Head of Sub-Directorate for Promotion Strategy Analyst/ Middle Expert Investment Management, Ministry of Investment/BKPM.

“Investment in the new renewable energy sector is also increasing in demand. The increasing need for energy is also accompanied by an increasing share of renewable energy. Indonesia’s new renewable energy share of around 14.5% (below the ASEAN average) is a challenge in itself, but this is also an opportunity for growth,” he said.

From an industrial perspective, there is actually a need for clean electricity produced by sustainable energy sources. This need becomes stronger if an industry enters the global brand supply chain. Rudi Cahyono, Energy Carbon Manager, PT Selalu Cinta Indonesia (SCI) said this pressure was because his party was included in the supply chain of the footwear industry which is marketed globally.

“We are committed to using 100% renewable energy by 2030 as a consequence of our entry into the global supply chain. By 2024, the target is that we can reduce our carbon footprint by 99%,” said Rudi.

Sakina Rosellasari, Head of the Central Java Province One Stop Investment and Integrated Services Service (PMPTSP), added that her agency continues to actively promote projects that are ready to be developed by investors.

“Central Java is open to green investment, not only labor intensive, but also green economic management,” he said.

Apart from investment on an industrial scale, the use of renewable energy at the community level also needs to continue to be encouraged. Yanto, Head of Banyuroto Village (one of the Energy Independent Villages), Magelang Regency, stated that there is a lot of renewable energy potential on a small scale that can be utilized on a communal scale with the support of the local government.

“Future plans, we, the village government, are trying to increase the amount of biogas in the community, around 100 biogas digesters at least in the next 5 years and budget it in the (village fund) APBDes and are ready to collaborate with related agencies, campuses and other parties,” he said.

With 34 biogas digesters spread throughout almost the entire Banyuroto Village area, this digester has helped the welfare of the community since 2007, starting from cooking needs (reducing household cost), lighting without converters and zero waste from the results of the biogas process (solid and liquid fertilizer, bioslurry).

In 2023, the national government will make a number of important notes in the development of renewable energy. The revision of the National Energy Policy (KEN) document and the inauguration of the Cirata Floating PLTS are among the major points in the energy transition process this year.

Adimas Pradityo, Business and Commerce Development Manager, PLN Nusantara Power said that in 2024 there will be PLTS development in Central Java with a capacity of 140 MW in several locations including Batang and Pemalang. Adimas also shared PLN Nusantara Power’s experience in developing the Cirata floating PLTS.

“(One of) the challenges is explaining the PLTS concept to regulators. We really have a bottom up approach in licensing the development of the Cirata Floating PLTS,” he said.

IETO 2024: Reviewing Progress in the Energy Transition in Indonesia

Jakarta, 15 December 2023 – In the last three years, there has been a number of advances in the energy transition in Indonesia. Since 2020, the Indonesian government has begun to include the energy transition agenda in the government’s agenda.

At the launch of the annual flagship report Indonesia Energy Transition Outlook 2024, Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR) emphasized that this progress is important.

“In the last 3 years, Indonesia has attempted to consolidate renewable energy incentive policies. The results are not yet widely visible, but the energy transition issue is increasingly being discussed, has become an important issue, and is on the government agenda. The next stage, with a consolidated policy, Indonesia’s energy transition steps can be faster.”

Fabby added that in compiling the IETO 2024 report, the IESR team used four frameworks to analyze the development of the energy transition in Indonesia including (1) policy and regulatory framework, (2) funding and investment support, (3) implementation of technology, and (4) social impact and public support.

On the same occasion, Dadan Kusdiana, Secretary General of the Ministry of Energy and Mineral Resources (MEMR), stated that the consolidation carried out by the government at this time was not only carried out from a regulatory perspective, but was also carried out from a techno-economic one.

“In our opinion, one of the keys to the success of NZE (net zero emissions) in the power generation sector is the existence of a super grid that connects the islands in Indonesia,” said Dadan.

Indonesia’s decarbonization achievements during 2023 are considered less than encouraging, where in this one year the addition of renewable energy capacity only increased by around 1 GW, far from the 2021-2030 RUPTL target which set 3.4 GW target in the same period.

Alvin Sisdwinugraha, IESR Electricity Sector Analyst, said that Indonesia needs to immediately improve to pursue its decarbonization target, especially in developing renewable energy projects.

“The government can implement a number of strategies including reviewing the project preparation phase, increasing project attractiveness, improving the domestic renewable energy supply chain, and immediately improving electricity network infrastructure,” he said

Alvin also highlighted the biomass development strategy, which is closely related to the availability of land for the feedstock. Considering the limited availability of land, he said. It would be good if the use of biomass is focused on hard-to-abate sectors.

Apart from the electricity sector, other sectors that consume energy are industry and buildings. The industrial sector is the trigger for a significant increase in energy consumption in Indonesia, or around 81%. In 2022, there will be the addition of 5 commercial smelter units, which could have an impact on the potential to double energy consumption by 2023.

Fathin Sabbiha Wismadi, Energy Efficiency Analyst in Buildings, IESR, said that the existence of binding regulations would be an acceleration of energy efficiency.

“We have 6 things that can contribute to reducing energy intensity in Indonesia, first, electrification. Second, energy efficiency, third, regulations regarding energy consumption and energy efficiency, fourth, ecosystem and infrastructure such as charging locations, fifth, incentives and sixth, increase awareness of the Indonesian people,” said Fathin.

From the supply side, at the sub-national level, a number of provinces in Indonesia have completed General Regional Energy Plans (RUED). Anindita Hapsari, Agricultural Analyst, Forestry, Land Use and Climate Change IESR highlights the need for assistance in each region in accelerating the adoption of renewable energy.

“The capabilities of each region are different, requiring assistance in the form of regulations and schemes, both financial and non-financial,” said Anin.

Availability of financing is one of the issues that hinders the acceleration of renewable energy. One reason is that the perception of renewable energy investment is still relatively low. Martha Jessica, IESR Socioeconomic Analyst conveyed that investment in renewable energy generation is still considered a high-risk investment.

“The realization of investment in renewables is also still low. The trend is very far from ideal, in which this year and last year did not reach the target, namely the investment target of USD 1.8 billion in 2023, but last semester only around 30% was achieved,” she said.

The electricity sector is the leading sector in Indonesia’s decarbonization agenda, because it already has a decarbonization roadmap. However, targets in the electricity sector are still not easy to achieve.

His Muhammad Bintang, Energy Storage and Battery Technology Analyst, IESR, said there are at least three things that need to be encouraged to ensure the electricity sector decarbonization target is achieved.

“First, we need to build a clean energy ecosystem, secondly physical and non-physical infrastructure, and prioritize interventions that have been proved,” he said.

Preparing for the Energy Transition in South Sumatra for Youth

Palembang, 5 December 2023 – The increasing intensity of hydrometeorological disasters in the last decade indicates that climate change is currently underway. Secretary General of the United Nations (UN), Antonio Guterres, said that the earth is entering an era of global boiling, where July 2023 was recorded as the hottest day in history.

Climate change occurs due to high greenhouse gas emissions. The energy sector is one of the highest emitters, especially with the use of fossil energy such as coal. Indonesia is one of the coal producing countries, with 80% of its coal output for export needs. Indonesian coal production is concentrated in four provinces in Indonesia, namely East Kalimantan, South Kalimantan, North Kalimantan and South Sumatra. South Sumatra is a food and energy barn for the island of Sumatra. The coal produced by South Sumatra will be used to generate electricity which will supply all the electricity needs on the island of Sumatra, according to projections, it will even export electricity as far as Singapore.

Marlistya Citraningrum, Sustainable Energy Access Program Manager of the Institute for Essential Services Reform (IESR), in a public lecture at Sriwijaya University quoted a survey related to the current climate change phenomenon, young people aged 24-39 years had high concerns about the climate crisis and impact.

“The energy transition is a systematic effort to mitigate the impact of the climate crisis that we are increasingly feeling,” said Marlistya Citraningrum, who is familiarly known as Citra.

This change in the energy system also has other impacts, namely the growing need for workers who have skills and insight into sustainability.

However, young people’s enthusiasm for getting involved in green jobs is hampered by several things, one of which is the limited information about green jobs and job vacancies in the green jobs sector.

“In the energy transition process, young people can take roles according to their respective skills, not limited to the engineering field alone. Social departments such as economics and international relations can also contribute to the energy transition process,” said Citra.

Citra added that currently a number of challenges still face the development of green jobs in Indonesia, one of which is related to certification. Currently, certification is still limited to technical sectors related to renewable energy-based electricity generation.

On the other hand, reducing and stopping the use of coal and switching to renewable energy will have an impact on social and economic aspects in coal-producing regions in Indonesia. Hari Wibawa, Head of the Economic and Development Funding Division of South Sumatra Bappeda, on the same occasion, said that coal reserves in South Sumatra province will run out in 12 years, so economic diversification is very important to avoid major economic shocks when the coal sector stops.

“Our (government’s) current priority is to integrate the energy transition plan into the RPJPD so that every action or activity has a strong legal basis,” said Hari.

The Modal Share of Indonesia’s Transportation Requires Strong Push from the Government

Dekarbonisasi sektor transportasi Indonesia

Jakarta, 5 December 2023 – Since 2021 the transportation sector in Indonesia has been ranked as the second highest emitter, displacing industry. Many emissions from the transportation sector are caused by burning fuel, which is the main energy source for vehicles. With projected economic growth and development plans, it is predicted that emissions from the Indonesia’s transportation sector will continue to increase. As an effort to strengthen climate change mitigation actions, decarbonization of the transportation sector is important.

Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR) in the webinar entitled “Dissemination of Indonesia’s Transportation Decarbonization Roadmap”, (5/12) emphasized that to ensure each climate change mitigation actions are in line with the Paris Agreement, emission reduction targets must be calculated not just based on percentages but also taking into account alignment with Paris targets.

“IESR carries out modeling to find policies and steps that can be taken to increase Indonesia’s climate change mitigation actions, especially in the transportation sector,” said Fabby.

The draft transportation decarbonization roadmap focuses on two scales, namely the national and regional scales (Jabodetabek).

IESR sustainable mobility analyst, Rahmi Puspita Sari added that the increase in private vehicle ownership, especially motorbikes, has been one of the factors causing increased emissions from the transportation sector.

“With various types of demand growth and the choice of mode still being private transport, this has an impact on greenhouse gas (GHG) emissions in the transportation sector. “Most of the GHG emissions come from passenger transportation (73%), and followed by land transportation (27%),” said Rahmi.

Fauzan Ahmad, member of the Tasrif Modeling Team, who participated in modeling the transportation decarbonization road map, explained one of the main findings from this simulation, namely that in the Avoid, Shift, Improve (ASI) scheme, which is quite common for transportation management, there is potential for reducing emissions up to 18% by avoiding travel by implementing a work from home (WFH) system.

“Actually, only 8% of the total workers can work from home, of this 8% potential, currently only around 1% of workers work from home. If this potential is maximized, we can reduce emissions even more by the number of trips avoided,” said Fauzan.

Fauzan also added that the choice to review transportation patterns in Jabodetabek was because Jabodetabek was considered as a unified area that interacts with each other.

Arij Ashari Nur Iman, a modeler from the Tasrif Modeling Team, added that with the current condition of the transportation system, the most effective solution for decarbonizing the transportation sector is to divide passenger loads into various modes (mode share).

“Electric vehicles will have a big impact on the goal of reducing emissions, but two conditions must be achieved to have an impact on a national scale, namely increasing the sales share of electric vehicles and creating a policy framework that supports the discard rate of ICE vehicles. Modal shifting to public transportation will be a sustainable solution in the context of fuel and resource use, but requires large initial investment,” explained Arij.

Professor of civil engineering at Gadjah Mada University (UGM), Agus Taufik Mulyono, stated that the Indonesian government still does not have the courage to create (transportation) policies that encourage share modes.

“This share mode issue must be regulated by the government in law, currently there is no law. This study is good, because when more advanced modes of sharing are deemed difficult, then both are still road transportation, but shared between spaces,” he said.

Agus also reminded of implementation challenges if the recommendations of this study were adopted in the form of policies or regulations.

In line with Agus, Alloysius Joko Purwanto, Research and Development Commission, Jakarta City Transportation Council also highlighted the use of public transportation which should be further encouraged.

“Current policies have the potential to cause contradictions, such as the electric vehicle incentive policy, which on one hand has the potential to increase private vehicle ownership rates and has the potential to increase traffic jams because the discard rate for ICE vehicles is still low,” said Joko.

The use of biofuels is also included in the transportation decarbonization roadmap modeling. Edi Wibowo, Director of Bioenergy, Ministry of Energy and Mineral Resources, said that the results of this study are broadly in line with Indonesia’s energy transition road map which will generally add renewable energy capacity to power plants and other sectors will also follow to shift to a more efficient system like such as biofuel.

“We (at the Ministry of Energy and Mineral Resources) continue to develop biofuels, currently we are testing the application of Biodiesel B40 and if the process goes smoothly in 2026 it will start to be used. This (development) effort is a form of real support for Indonesia’s energy transition plan,” said Edi.

Gonggomtua E. Sitanggang, Director, ITDP Indonesia emphasized the importance of public communication to raise awareness among the public. When the public has sufficient awareness and knowledge about the importance of a low-emission transportation system, it will be easier to involve and mobilize them to slowly reduce their dependence on the use of private vehicles.

“Apart from that, it is also important to look at the relationship between the national government and regional governments. What needs to be underlined is our laws and regulations relating to regional autonomy (otonomi daerah), where the one who has the budget and authority is the regional government, while transportation has not yet become one of the KPIs (key performance indicators) for regional leaders. As a result, the budget for the transportation sector is very minimal,” said Gonggom.

Dissemination Webinar on Indonesia’s Transportation Decarbonisation Roadmap

Replay Streaming

Background

Indonesia has endorsed a commitment to keep global temperature below 1.5 OC in line with the Paris Agreement through regulation No. 6 of 2016. Although the Indonesian government has put its NDC targets (41% emission reduction in 2030 compared to BAU, and net-zero emissions in 2060), it is still not enough to fulfill the Paris Agreement goals. The energy sector is projected to dominate Indonesia’s future emissions. In addition, from a technical and economic perspective, the energy sector in Indonesia can achieve zero emissions by 2050.

The transportation sector accounts for 23% of Indonesia’s total energy consumption in 2021, replacing Industry as the largest energy-consuming sector since 2012. Energy consumption by the transportation sector is dominated by petroleum fuels such as gasoline, diesel and aviation fuel. In 2017, this sector contributed around 26% of the energy sector’s greenhouse gas (GHG) emissions, or around 147 million tons CO2e. This figure does not include GHG emissions lost in the upstream oil processing industry, which contributes about 7% of the energy sector’s associated GHG emissions. In 2021, the land transportation mode contributes about 90% of the total transportation sector emissions, followed by the air and maritime transportation sectors.

The government has undertaken several initiatives and policies in the transportation sector to reduce emissions, such as the use of biofuels, public vehicles (mode shift), and most recently the move to electric vehicles. One of the drivers is the high increase in fuel imports that has occurred since 2004. However, these policies have not been anchored by a common planning document (or so-called roadmap), and as such, there is potential to optimize efforts and costs in implementing existing initiatives and promoting new ones to support decarbonization of the transport sector. Therefore, in this program focus, IESR is currently modeling a roadmap that can provide guidance on what aspects or strategies to prioritize to effectively reduce emissions in the transportation sector, using system dynamics methodology.

Objective

To further disseminate the findings of the system dynamics modeling of the roadmap for decarbonization opportunities in the transportation sector of the Jabodetabek national and regional model structures

More specifically, the discussion in this meeting is expected to:

  1. Disseminate and share information on Indonesia’s transport decarbonization roadmap to relevant key stakeholders, including policy makers, transport actors, associations, and research institutions.
  2. Receive inputs and validate the transport decarbonization roadmap from relevant key stakeholders.
  3. Discuss key and actionable policies required to implement the transport sector decarbonization roadmap at national and regional scales.
  4. Identify future challenges, opportunities, and support from relevant key stakeholders

Materi Presentasi

Dissemination Webinar on Indonesia’s Transportation Decarbonisation Roadmap: Emission Reduction Projection and Policy Intervention in Modal Share and Electric Vehicles – Rahmi Puspita S, Fauzan Ahmad & Arij Ashari N

Slide-deck-Presenter-Diseminasi-Dekarbonisasi-Transport-5-Oktober-2023-

Unduh

Pemodelan Dinamika Sistem (System Dynamics) Transportasi: Dekarbonisasi – Dr Muhammad Tasrif

Slide-deck-Presenter-Pengantar-Model-Diseminasi-Dekarbonisasi-Transport-5-Oktober-2023

Unduh

Emission Reduction Projection and Policy Intervention in Modal Share and Electric Vehicles – Prof. Dr. Agus Taufik Mulyono

Slide-deck-Penanggap-Prof.-Agus-TM-Diseminasi-Dekarbonisasi-Transport-5-Oktober-2023-

Unduh

Realizing Energy Democratization through Solar Energy

Jakarta, 5 October 2023 – Energy is a basic human need not only to support daily activities but more importantly to increase productive activities. Solar energy is a renewable energy source that can realize energy democratization.

Solar energy fulfills several aspects for the democratization of energy such as the availability of resources throughout the year, and the flexibility of the scale of installation. For a nobler goal, by installing solar panels, users contribute to reducing emissions from the energy sector. These various reasons show that motivations for using solar PV can vary.

This is in line with the findings of a market survey conducted by the Institute for Essential Services Reform (IESR), one of which explored respondents’ motivations for using solar PV. Marlistya Citraningrum, IESR Sustainable Energy Access Program Manager, in the Seminar ‘Solar Energy Policy and Action Plan as a Form of NRE Commitment towards Indonesia’, Thursday 5 October 2023, explained that motivations can vary from one region to another.

“MSMEs in Central Java choose rooftop PV because they are interested in the savings so that their electricity bill money can be allocated to other things. Meanwhile, business people in Bali have a high awareness of maintaining harmony with nature. “Apart from that, they will get positive branding as an environmentally friendly business entity,” said Marlistya.

To increase public interest in using solar energy, several things need to be done by stakeholders, including the government, in creating an ecosystem that supports the growth of renewable energy.

Three things that must be pursued to encourage participation by more parties are first, regulations that are clear and supportive and well communicated so that the public gets information about rooftop PV regulations easily and without confusion. Second, there are examples of users and easy access to service providers; third, provide incentives and increase access to financing.

In the same forum, Dedi Rustandi, Intermediate Expert Planner Coordinator for NRE at the Ministry of Bappenas stated that solar energy achievements were still below RUPTL target.

“There are a number of main causes, including the pandemic which has prevented electricity demand from growing significantly, there is uncertainty in the investment climate for the business, as well as delays in project procurement (related to governance),” said Dedi.

Dedi admitted that there are still a number of inefficient policies, resulting in the use of solar energy not being optimal in Indonesia.

New Hope in Menamang Kanan

Samarinda, 7 September 2023 – Menamang Kanan Village is located in Muara Kaman District, Kutai Kartanegara Regency. It takes around 4 hours to travel from the city of Samarinda via road to reach this village. Until 2022, the people of Menamang Kanan rely on diesel generators from a company’s CSR (Corporate Social Responsibilities) program to fulfill their access to electricity. Diesel will light up and be a source of lighting for residents for 4 hours every day.

The hope of having longer and better quality access to electricity is slowly starting to come to light in 2022. Through the East Kalimantan Regional Revenue and Expenditure Budget (APBD), Menamang Kanan village received centralized solar PV installation of 87 kWp. Electricity from this PV is distributed to 600 families.

Even though we already have other energy sources, unfortunately the quality of electricity produced is only sufficient for lighting and basic electronics.

“Because we only produce 700 watts/day and it has to be used communally, so it can only be used for lights and fans at most, It can’t be used for TV or cooking rice, let alone the refrigerator,” explained Zapir, Menamang Kanan Village Secretary.

Zapir added that the people of Menamang Kanan hope to increase the electricity capacity they receive so that people can use electricity for other, more productive activities. Not limited to lighting.

The Institute for Essential Services Reform (IESR) believes that the quality of electricity received by society needs to improve because if the electricity they receive is of low quality, society will not be able to carry out productive activities that can improve the economy. Decentralized power plants such as solar PV need to increase massively to supply electricity in rural areas.

Regional governments can utilize their authority in developing renewable energy as regulated in Presidential Decree Number 11 of 2023, in order to improve the quality of people’s access to electricity.

“This additional authority certainly needs to be followed by local government initiatives to design programs that also address the need to provide energy access, especially with local renewable energy. This principle of energy decentralization enables independent energy efforts with the involvement of many parties and is expected to improve community welfare with sustainable energy access,” explained Marlistya Citraningrum, Sustainable Energy Access Program Manager, Institute for Essential Services Reform (IESR) in the webinar “Energy Transition in Equity National Electrification”.

Decentralization of energy by utilizing renewable energy sources will open up opportunities for wider and participatory exploration of utilization so as to facilitate access to electricity and increase the reliability of its quality.