Transforming the Electricity Sector as a Strategic Step to Accelerate Emission Reduction

press release

Jakarta, September 18, 2023 – The Indonesia Clean Energy Forum (ICEF) and the Institute for Essential Services Reform (IESR) are urging Indonesia to accelerate the transformation of the electricity sector. This has been the focal point of discussion at the 2023 Indonesia Energy Transition Dialogue (IETD), organized by ICEF and IESR in collaboration with the Ministry of Energy and Mineral Resources (MEMR). IESR and ICEF view the energy transition in the electricity sector as a strategic step that will simultaneously reduce emissions in other sectors such as transportation and industry.

“The current focus should be on developing renewable energy to become the backbone of Indonesia’s primary energy. Technological innovation in energy generation from potential renewable sources such as biomass, geothermal, hydro, solar, wind, and others needs to be enhanced,” stated Bambang Brodjonegoro, Chairman of ICEF.

Bambang highlighted that the Indonesian government has demonstrated a clear commitment to energy transition, actively advocating for it in various international and diplomatic forums with the aim of promoting more environmentally friendly cooperation and investments for the energy transition.

Arifin Tasrif, Minister of Energy and Mineral Resources, stated in his remark at IETD 2023 that energy transition requires significant infrastructure transformation, especially for developing countries. He noted that this presents its own challenges in the energy transition process in Indonesia.

“The lack of supportive infrastructure, high investment costs with limited funding are some of the challenges of energy transition in Indonesia. Indonesia collaborates with other countries to address these challenges, providing competitive technologies, sustainable financing accessibility, and human resource capacity building,” explained Arifin.

Yudo Dwinanda Priaadi, Director General of New Renewable Energy and Energy Conservation at the Ministry Of Energy And Mineral Resources, also explained, “Our energy transition funding is obtained through trust; therefore, ongoing programs must align with global plans. Currently, funding for JETP (Just Energy Transition Partnership) is being pursued and refined through discussions between the Indonesian government and the International Partners Group (IPG) in New York, USA.”

Fabby Tumiwa, Executive Director of IESR and ICEF, mentioned that one of the remarkable aspects of IETD 2023 is that it is held in collaboration with MEMR for the first time. He also emphasized that for the energy transition to be fair, safe, and beneficial for all citizens, it requires careful planning and the involvement of all community groups. According to Fabby, the energy transition in the electricity sector is a strategic sector for emission reduction due to three factors: the feasibility of alternative technologies (renewable energy), planned electricity grid integration, and the economic benefits of increasingly affordable renewable energy.

“These technological factors encompass the integration of renewable energy, energy storage solutions, grid integration that can be planned, and the economic benefits of competitive renewable energy technologies compared to fossil fuels,” concluded Fabby.