Jakarta, 15 March 2022 – Indonesia has potential natural resources that can be allocated to develop solar power plants. Besides, solar power plants as renewable energy are feasible to create and reasonably competitive in price; hence solar might support the achievement of Indonesia’s renewable energy mix and emission reduction targets.   

Ahead of the Indonesia Solar Summit (2022), the Institute for Essential Services Reform (IESR), together with the Ministry of Energy and Mineral Resources (KESDM), held four pre-events, one of them was IPP Track, which was held on 15 March.

Executive Director of IESR Fabby Tumiwa said ISS was aimed to discuss more the contribution of renewable energy acceleration, especially solar, for green jobs and the means to achieve the 20-gigawatt target through pipeline projects that will have a positive impact on green economic recovery post-pandemic.

Ida Nuryatin Finahari, Directorate of Electricity Business Development KESDM, said that the government would commit to the Paris Agreement targets. One of the strategies to implement is by enacting the National Electricity Supply Business Plan (RUPTL) 2021-2030.

“The inclination toward lower price and faster duration of its establishment, solar power plant target in RUPTL were added approximately 4,7 gigawatt,” said Ida.

Furthermore, Ida said the target of 51,6% renewable energy plant capacity in 2030 in RUPTL is higher than the National Electricity General Plan (RUKN).

In parallel, the Ministry of Maritime and Investment Affairs representative, Ridha Yasser, said that the renewable energy transition would be a global trend in the next few years. The government has prepared an Energy Transition Mechanism (ETM) to encourage a green technology-based economy and established green industry areas in North Kalimantan. These are the government’s response to market demand to exert sustainable energy in all productions.

“However, amid the trend of high demand for solar panels, solar panel fabrication in Indonesia is still experiencing problems. On the one hand, it must also compete with solar manufacturers abroad,” he said.

The IPP Track event also invited several independent electricity developers (IPP), holders of Business Licenses for Electric Power Providers for the Public Interest (IUPTLU), as well as industrial estate managers, both private and State-Owned Enterprises (BUMN), to the discussion, such as PT PLN, Akuo Energy, PT Cikarang Listrindo, PT Tunas Energi, PT Energi Prima Nusantara, PT Bitung Inti Cemerlang, etc.

In general, the privates stated that they had supported the use of renewable energy for their operationalization. However, the private sector still finds obstacles such as licensing, unpreparedness to use rooftop solar PV, the possibility of waste problems due to the usage of battery storage energy systems, and the unaffordable price of solar power plants in frontier, outermost, and least developed regions (3T).

“Things that need to be emphasized are the consistency of existing regulations and procurement…from the implementation side; there needs to be transparency. For the TKDN itself, we as a private group support it, but TKDN also needs to fact-check the field’s condition so that its requirement will not cause obstacles to the development solar power plants in Indonesia. Once the market is established, the domestic industry will emerge by itself,” said Komang from Akuo Energy.

As a group that will use a lot of energy in its operationalization, the industries need support from the government, especially in using renewable energy, from upstream to downstream. This also required achieving renewable energy targets as the government had planned.