Media Briefing: Preparing for Indonesia’s Energy Transition & Anticipating Its Implications and Launching The Indonesia Energy Transition Dialogue (IETD) 2023

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Background

Between 2021 and 2022, the Intergovernmental Panel on Climate Change (IPCC) issued reports from three working groups, all of which uniformly conveyed that there is already scientific evidence related to the climate crisis and its impact on the Earth. One of the key findings of the report is that greenhouse gas emissions due to human activities have contributed to an increase in the Earth’s average temperature by 1.1°C since 1850-1900 and have the potential to rise beyond 1.5°C within the next 20 years. Furthermore, the report also outlines mitigation options that can be pursued and the scale of change that needs to occur, especially in this decade, to stay on track for 1.5°C.

Indonesia ratified the Paris Agreement through Law No. 16/2016. This means that Indonesia has legally committed itself to addressing the challenges of climate change by supporting global efforts to limit the increase in the average temperature to 1.5°C below the pre-industrial era average temperature. According to one of the IPCC models, to achieve this temperature limit, greenhouse gas (GHG) emissions must be reduced by 45% by 2030 compared to GHG emission levels in 2010 and reach net zero by 2050.

As a country that has ratified the Paris Agreement, Indonesia has reaffirmed its commitment to contribute to addressing the climate crisis. Indonesia’s own GHG emission reduction target in the Updated Nationally Determined Contributions (UNDC) is 29%, which increases to 31.89% in the Enhanced Nationally Determined Contributions (ENDC), while the target with international support in the UNDC is 41%, increasing to 43.20% in the ENDC.

A study by the Institute for Essential Services Reform (IESR) and the University of Maryland (2022) found that 9.2 GW of coal must be phased out from the state-owned utility (PLN) grid by 2030, and all unabated coal generation must be retired by 2045 at the latest, to put Indonesia on track to achieve the Paris Agreement’s global temperature target of 1.5°C. The study also concluded that coal emissions should begin to decline before the end of the decade.

Several initiatives and measures are in place to support and facilitate the early retirement of Indonesia’s power plants. In addition to the Transition Mechanism (ETM) launched at COP-26, during the G20 Summit, Indonesia and the International Partnership Group (IPG) have also signed the Just Energy Transition Partnership (JETP) agreement. This agreement aims to achieve the power sector’s peak emissions target of 290 million metric tons of CO2 (MtCO2) by 2030, attain a renewable energy mix of 34% by 2030, and make the power sector carbon-neutral by 2050.

In an effort to strengthen Indonesia’s climate action, the Government of Indonesia received a funding commitment of USD 20 billion from the Just Energy Transition Partnership (JETP) program. The formulation of the implementation of the funding is translated into a Comprehensive Investmentand Policy Plan (CIPP), which focuses on investment areas consisting of developing transmission and distribution networks, the early retirement of coal-fired power plants, accelerating the utilization of baseload-type renewable energy, accelerating the utilization of variable-type renewable energy, and building renewable energy supply chains. The government has finalized the CIPP document and will conduct public consultations over the next few months.

The energy transition can reduce Indonesia’s exposure to similar problems in the future. A smooth and successful energy transition requires the support of all parties, including the general public. Therefore, the process of preparing for the energy transition also needs to pay attention to aspects of inclusiveness. Additionally, it is important to consider impact management and anticipate the implications of the energy transition process. This includes considerations such as the fate of CFPP workers whose operational periods are ending prematurely, the creation of new jobs (green jobs), and how Indonesia’s energy transition can support economic growth through the shift from fossil industries to low-carbon industries.

Therefore, to further discuss the readiness of the energy transition in Indonesia and the launch of the 6th Indonesia Energy Transition Dialogue (IETD), we will organize a Media Briefing. This media briefing aims to provide an overview of the process and impact of Indonesia’s energy transition and to convey the implementation plan of the IETD as a forum for fact-based discussions that support the best policy formulation in the energy sector, facilitating more ambitious climate targets.

1 www.ipcc.ch/sr15/chapter/chapter-2/

2 IESR UMD, 2022, Financing Indonesia coal phase-out

Objective

  1. To inform about the JETP program’s Comprehensive Investment and Policy (CIPP) development.
  2. To discuss the socio-economic implications of the energy transition and anticipation measures in Indonesia.
  3. To announce the implementation details of the Indonesia Energy Transition Dialogue 2023 event on September 18-20, 2023.

Presentation Material

ESDM

130923-DEK-IETD-IESR-ESDM

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Faisal Basri

130923-DEK-IETD-IESR-Faisal-Basri

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ASEAN Grid Interconnectivity as the Start of Renewable Energy Security in the Region

press release

Jakarta, 13 June 2023 –  To reach energy security sustainably and to face challenges of global climate change, Indonesia’s chairmanship in 2023 needs to be a strong leader in the decarbonization efforts of the energy sector in Southeast Asia. region. Institute for Essential Services Reform (IESR) views that Indonesia can further its regional cooperation and collaboration on innovation, technology, renewable energy research, and push for clearer and enticing policies to boost investments in the renewable energy sector.

As a region, ASEAN has committed to reach a 23% energy mix target in primary energy and 35% capacity of renewable energy installed by 2025. Furthermore, to expand the regional electricity trade , integrate the region’s power grid, and to strengthen the reliability of the power grid, ASEAN is currently building the ASEAN Power Grid (APG).

The Executive Director of the Institute for Essential Services Reform (IESR), Fabby Tumiwa, explains that the project to interconnect ASEAN’s grid through ASEAN Power Grid (APG) could be a starting point for ASEAN member states to boost renewable energy capacity in the electricity sector and shift their dependency to fossil fuels. Indonesian chairmanship in ASEAN 2023 with one of its main focus being Sustainable Energy Security has to be utilized to push ASEAN member states to focus on efforts to decarbonize their energy systems. 

“Indonesia has the chance to lead ASEAN to transition their energy, amplifying the renewable energy mix, and to reduce fossil energy. Indonesia has given examples for other ASEAN member states to have a more ambitious target that aligns with the Paris Agreement. One of which is to push ASEAN member states to end CFPP operations before 2050 and to push agreements between ASEAN member states to build cell industries, solar modules, and energy storage (battery),” Fabby Tumiwa assessed. 

ASEAN itself has a capacity of 7.645 MW on the existing interconnecting grid in the ASEAN Power Grid project, according to a presentation from the Sub Coordinator of the Electricity Program MEMR, Yeni Gusrini, in the IESR Webinar titled Toward a Decarbonized ASEAN. In the future, the interconnection grid will be added in capacity to around 19.000 – 22.000 MW and covers a wider area.

“ASEAN Power Grid contributes towards the economic development in ASEAN by helping fulfill energy demand in ASEAN and to develop regional industry player’s growth. On the first phase, the electricity grid in Laos, Thailand, Malaysia, and Singapore has been connected through the Lao PDR, Thailand, Malaysia, Singapore Power Integration Project (LTMS-PIP), which has been the pioneer of the power trade mechanism that has transmitted 100 MW from Laos to Singapore, utilizing the existing interconnection,” Yeni explicated. 

IESR views that the development of an interconnection grid that accommodates the integration of renewable energy in Indonesia needs to be accelerated so that it aligns with the Paris Agreement to net zero emission (NZE) in 2050.

“Interconnection between the islands in Indonesia and between the countries in ASEAN is one of the enabling factors of renewable energy integration. The existence of this interconnection will help solve the problem of intermittency and to maximize renewable energy usage, so that if there’s an oversupply such as solar PV in the daylight built in another location, the electricity can be transmitted to another place. Before that, ASEAN member states have to keep refurbishing their renewable energy investment climate in their respective countries and regionally with a more interesting regulation framework,” explained Deon Arinaldo, Program Manager of Energy Transformation IESR. 

Deon says, Indonesia is a country with the biggest economy and energy consumption rates in ASEAN, and has a massive energy resource. With ASEAN chairmanship this year and a supportive process and regulations for energy transition at the national level such as JETP and New and Renewable Energy Bill, this will make Indonesia an example and trigger the acceleration of ASEAN’s transformation process.

IESR believes that the decarbonization efforts are not limited to the government, but also involves the participation of various stakeholders, including private sectors, civil society, and international agencies. In this spirit of collaboration, Indonesia needs to invite all parties to join in the effort to tackle climate change and create a sustainable future for ASEAN. 

Building Collaboration Between CSOs in ASEAN to Accelerate Energy Transition

press release

Jakarta, May 16, 2023 – As the Chair of ASEAN in 2023, Indonesia can engage civil society in enhancing ASEAN’s relevance in various aspects aligned with global development challenges. These include increasing ambitions for regional climate targets, developing renewable energy, and promoting sustainable development.

The Institute for Essential Services Reform (IESR) believes that following the success of the energy transition agenda at the G20, Indonesia can foster cooperation among ASEAN countries to implement energy transitions in line with the targets of the Paris Agreement. This collaboration can help build joint efforts to strengthen resilience in the face of various threats and impacts of climate change, through sustainable development.

ASEAN already has the ASEAN Working Group on Climate Change (AWGCC) and ASEAN Working Group on Forest and Climate Change (AWGFCC), as well as ASEAN Energy Cooperation. However, achieving climate mitigation targets and advancing renewable energy require additional efforts and collaboration between these working groups, along with civil society organizations and transnational communities, to increase their contribution to the region.

IESR believes that Indonesia, as the Chair of ASEAN, can provide space for civil society at the regional level to be involved in the process of its chairmanship agenda in 2023, particularly regarding energy and climate issues.

“As one of the regional organizations projected to experience 4.7% economic growth in 2023 amidst weakening global demand, ASEAN is a promising region for investment, especially in the renewable energy sector. Leveraging its leadership in ASEAN, Indonesia can encourage and embrace civil society organizations in ASEAN to focus on the energy transition. By initiating concrete collaborations, together we can accelerate the energy transition in the region and tackle climate change,” said Fabby Tumiwa, IESR Executive Director, during the public discussion titled “Making Energy Green and Low Carbon to Support Sustainable Growth: Advancing the Role of Civil Society in Southeast Asia Energy Transition During Indonesia ASEAN Chairmanship 2023,” organized by IESR.

Economic growth in the ASEAN region needs to align with commitments to reduce greenhouse gas emissions following the Paris Agreement. ASEAN has set a target of achieving 23% of the renewable energy mix by 2025. However, according to the IEA, 80% of the primary energy mix in the Southeast Asian region still comes from fossil fuels. Reducing the cost of renewable energy is predicted by the IEA to increase the penetration of renewable energy in ASEAN by up to 70% by 2040. This can be achieved through intensive coordination and collaboration among stakeholders (government, civil society, and business stakeholders) in ASEAN, especially in the regional policy-making process.

Nevertheless, Arief Rosadi, Coordinator of the IESR Climate Diplomacy Project, highlights that ASEAN currently lacks a formal channel for civil society to express aspirations, particularly on climate and energy issues. Therefore, Indonesia needs to lead ASEAN in providing an inclusive and constructive dialogue space for civil society in the decision-making process within the region.

“One immediate step to take is to increase the intensity of communication between civil society in the region, enabling the sharing of information and the latest developments in each country regarding energy and climate issues. This aims to strengthen solidarity and a sense of ownership of ASEAN as a collective region,” said Arief.

According to him, Indonesia can encourage more public discussions that focus on knowledge exchange and provide data-based policy recommendations that support the acceleration of the energy transition through the development of renewable energy at the regional level. Additionally, this approach can offer opportunities for developing human resource capacity in the renewable energy sector.

“Another important action is to strengthen grassroots collaboration and civil society networks at the regional level. This collaboration can contribute to the achievement of the climate agenda and energy transition in the region by sharing good practices and technical knowledge,” Arief added.

Suhu Bumi Semakin Panas! Pesan IESR untuk Delegasi Indonesia di COP25

Pesan IESR untuk Delegasi Pemerintah Indonesia di COP UNFCCC 25 

Suhu Bumi Semakin Panas: Indonesia dapat melakukan transformasi perekonomian sebagai upaya pembatasan kenaikan suhu bumi dan pencapaian net-zero emission sesuai target Paris Agreement.

 

Jakarta, 29 November 2019 — Menjelang Konferensi Perubahan Iklim PBB atau COP UNFCCC yang ke 25 di Madrid pada 2-13 Desember 2019, IESR mengingatkan pemerintah Indonesia untuk menunjukkan komitmen dan political will dalam peningkatan aksi mitigasi perubahan iklim demi menjaga kenaikan suhu bumi pada 1,5°C. Komitmen ini diperlukan mengingat kegiatan mitigasi yang saat ini ada di dalam NDC Indonesia akan meningkatkan kenaikan suhu bumi di antara 3-4°C. Untuk dapat menjaga kenaikan suhu bumi pada 1,5°C, pemerintah Indonesia harus merancang kegiatan mitigasi perubahan iklim yang lebih ambisius dengan strategi pelaksanaan dan lokasi serta target pelaksanaannya yang rinci. 

Asia-Pacific Climate Week di Bangkok pada September lalu menegaskan pentingnya transformasi global menuju perekonomian rendah karbon dalam upaya pembatasan kenaikan suhu bumi. Transformasi ini akan membangun perekonomian yang memiliki ketahanan terhadap perubahan iklim. Lebih lanjutnya, UNFCCC pun melihat bahwa perekonomian rendah karbon merupakan suatu solusi untuk mengurangi dampak buruk dari perubahan iklim serta meningkatkan pertumbuhan perekonomian pada saat yang sama. 

Dampak dari perubahan iklim ini semakin terasa di Indonesia. Rekor temperatur terpanas dalam dua dekade terakhir sudah tercatat sebanyak 15 kali, yang berarti 15 tahun dalam dua dekade terakhir telah mencetak rekor temperatur terpanas secara global. Sejak akhir abad ke 19, temperatur global sudah naik sebanyak 1oC dan masih akan bergerak naik lagi jika kegiatan mitigasi yang cukup ambisius tidak dilakukan secara global. Bencana alam kerap terjadi di Indonesia, seperti banjir, banjir bandang, longsor, kekeringan, cuaca dan gelombang ekstrim, abrasi, serta kebakaran lahan dan hutan. Rentan terhadap perubahan iklim, Indonesia memiliki risiko banjir yang meningkat 5X pada kenaikan 3oC dibandingkan 1,5oC. Pada kenaikan 2,4oC jumlah siklon (badai) tropis kategori 4 akan meningkat 80% dan kategori 5 meningkat 120%. Dampak perubahan iklim akan lebih jauh lagi mempengaruhi kehidupan manusia di berbagai aspek seperti gagal panen akibat kekeringan, nelayan sulit melaut akibat ancaman tingginya gelombang laut, bahkan timbulnya sakit jantung dan alergi. Keterlambatan mengatasi perubahan iklim akan memberikan beban ekonomi yang lebih besar. 

Mengingat dampak perubahan iklim yang semakin meluas, diharapkan Pemerintah Indonesia segera melakukan langkah nyata dalam peningkatan ambisi iklim Indonesia. Laporan IESR, Brown to Green Report 2019, yang diluncurkan 20 November lalu di Jakarta, merekomendasikan beberapa hal yang harus dilakukan pemerintah Indonesia dalam adaptasi, mitigasi dan pembiayaan perubahan iklim demi menjaga kenaikan suhu bumi 1,5oC. Secara khusus, rekomendasi untuk pemerintah Indonesia dalam melakukan pembiayaan iklim yaitu mengintegrasikan risiko perubahan iklim dalam sektor keuangan, menghapuskan subsidi bahan bakar fosil paling lambat pada 2025, menghentikan dana APBN untuk membiayai proyek bahan bakar fosil, mengharmonisasikan informasi mengenai pembiayaan iklim dalam rencana pembangunan jangka panjang.

Dari laporan ini, ditunjukkan bahwa sesungguhnya Indonesia mampu melakukan transformasi perekonomian menuju net-zero economy sesuai dengan salah satu target dari Paris Agreement. Beberapa langkah nyata yang seharusnya dilakukan pemerintah Indonesia untuk dapat meningkatkan ambisi iklim untuk mencapai 1,5°C, yaitu: 

  1. Menurunkan kontribusi dari PLTU dan meningkatkan kontribusi dari energi terbarukan hingga tiga kali lipat pada sektor ketenagalistrikan pada 2030.
  2. Menaikkan tingkat efisiensi energi dari penerangan dan peralatan rumah tangga, dimana hal ini dapat mengurangi beban puncak listrik sebesar 26,5 GW pada 2030.
  3. Melakukan moratorium pembukaan hutan secara permanen termasuk hutan primer dan sekunder, serta lakukan restorasi gambut, untuk menyelamatkan 66 Mha hutan.

“Meningkatkan kontribusi energi terbarukan dalam bauran energi pembangkit listrik sangat mungkin dilakukan secara teknis dan tidak akan mengurangi kehandalan dari jaringan nasional. IESR memiliki laporan yang membuktikan hal ini. Yang dibutuhkan sekarang adalah political will. Pendanaan pun tidak perlu diragukan lagi. Banyak sumber pendanaan nasional dan internasional untuk melistriki Indonesia dari energi terbarukan” kata Erina Mursanti, Manajer Program Green Economy, IESR.

Erina melanjutkan bahwa upaya penurunan emisi gas rumah kaca untuk menjaga kenaikan suhu bumi 1,5°C tidak dapat dilepaskan dari transformasi perekonomian dan transisi energi mengingat mayoritas dari emisi gas rumah kaca diproyeksikan akan berasal dari sektor energi, sedangkan, energi diperlukan untuk mendorong perekonomian dan menaikkan tingkat pertumbuhan ekonomi. 

Jakarta, 29 November 2019


Informasi tambahan

Konferensi Perubahan Iklim PBB COP 25 (2 – 13 Desember 2019) akan berlangsung di Madrid, Spanyol di bawah Presidensi Pemerintah Chili, Konferensi ini dirancang untuk mengambil langkah-langkah penting berikutnya dalam proses perubahan iklim PBB. Mengikuti kesepakatan tentang pedoman pelaksanaan Perjanjian Paris di COP 24 di Polandia tahun lalu, tujuan utama dari konferensi ini adalah untuk menyelesaikan beberapa hal sehubungan dengan operasionalisasi penuh Perjanjian Perubahan Iklim Paris. IESR sebagai salah satu partner global dari Climate Transparency, akan turut menghadiri COP 25 Side Events dan bertindak sebagai panelis dalam beberapa diskusi yang akan diselenggarakan mulai tanggal 2 hingga 6 Desember, bersama dengan perwakilan dari Pemerintah Indonesia, yang diwakilkan oleh Direktur Jenderal Pengendalian Perubahan Iklim Kementerian Lingkungan Hidup dan Kehutanan.

Tentang IESR 

Institute for Essential Services Reform merupakan mitra Indonesia dari the Climate Transparency yang bermarkas pusat di Jerman, adalah institusi riset dan advokasi di bidang energi dan kebijakan lingkungan. Institusi kami mengkombinasikan studi mendalam, menganalisa kebijakan, undang – undang, dan aspek tekno-ekonomi pada sektor energi dan lingkungan dengan aktivitas advokasi kepentingan umum yang kuat untuk mempengaruhi perubahan kebijakan pada skala Nasional, sub-bangsa dan dunia. 

Narahubung Pers dan Media:

Erina Mursanti erina@iesr.or.id

Program Manager, Green Economy

 

Gandabhaskara Saputra ganda@iesr.or.id 081235563224

Communications Coordinator

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