Jakarta, October 10, 2023 – Indonesia is pursuing the Indonesia Emas 2045 ambition that targets economic growth, characterized by an increase in per capita income on par with developed countries and a decrease in emissions intensity. For economic growth to continue to increase, with the fulfillment of reliable energy and low emissions, energy towards renewable energy is one of the essential ways to realize the vision of Indonesia Emas 2045.
Ervan Maksum, Deputy for Facilities and Infrastructure, Ministry of National Development Planning/Bappenas, mentioned that energy transition is one of the game changers to achieve the Indonesia Emas 2045. According to Ervan, sustainable energy provision must be encouraged to fulfill essential services, support economic activities, and improve national growth.
“Energy transition not only requires the implementation of modern technology, but also regulatory and institutional support. Through the energy transition, we hope to fulfill Indonesia’s commitment to the world where Indonesia’s greenhouse gas emission reduction can reach 32%-43% by 2030 and the net zero emission (NZE) target by 2060 or sooner,” Ervan said at Indonesia Sustainable Energy Week (ISEW) 2023.
Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR) emphasized the importance of developing a renewable energy ecosystem and incorporating it into strategies in the National Long-Term Development Plan (RPJPN) and the National Medium-Term Development Plan (RPJMN). According to him, the energy transition should strive to achieve more ambitious emission reduction targets through accelerating renewable energy, by attracting more funding from within and outside the country and utilizing available energy transition financing, such as the Just Energy Transition Partnership (JETP).
“The priority of energy transition and emission reduction in the RPJPN and RPJMN must be a priority for presidential candidates, political parties, and legislative candidates who will contest in 2024. The end of coal-fired power plant operations in line with the Paris Agreement targets, and the equitable energy transition need to be promoted as a political agenda and work program in the remaining time of the current government and the new government later,” Fabby explained.
Yudo Dwinanda Priaadi, Director General of New, Renewable Energy and Energy Conservation, Ministry of Energy and Mineral Resources (MEMR) explained that his party had compiled a Road Map for Early Termination of Coal-Fired Power Plant Operations as mandated by Presidential Regulation 112/2022. One of them targets the early termination of coal-fired power plant operations until 2030 with a total coal-fired power plant capacity of 6.1 GW to achieve the JETP target of reaching a peak emission of 290 million tons of carbon dioxide equivalent.
“To maintain the reliability of the energy system, there are alternative scenarios such as the use of renewable energy using batteries, Java-Sumatra renewable energy interconnection, coal-fired power plant co-firing with a maximum of 10 percent,” Yudo said in his presentation on the same occasion.
The five investment focus areas of the Just Energy Transition Partnership (JETP) include early termination of coal-fired power plant operations. This was conveyed by Paul Butarbutar, Chief Deputy of the JETP Secretariat. He said that in addition to the early termination of coal-fired power plant operations, other investment focuses under the JETP scheme are transmission and distribution development, renewable energy that is controllable and constant (dispatchable), variable renewable energy and supply chains, and fair energy transition programs.
“As we advance, to provide greater space for renewable energy, coal-fired power plants can continue to operate with a reduced portion of energy generated. We are also encouraging investment in the renewable energy industry, with two factories producing solar panels planned to be operational in the third and fourth quarters of next year. From these various investment focus areas, USD 95 billion is needed until 2030 with the biggest focus on variable renewable energy (VRE),” he explained.