Road to IETD 2023 : Energy Transition in National Electrification Equity


Energy transition, as a strategy to mitigate greenhouse gas emissions in the energy sector, plays a crucial role in achieving Indonesia’s climate targets. This transition also aligns with the goals of sustainable economic growth outlined in the Low Carbon Development Indonesia (LCDI), a plan by the Ministry of National Development Planning/Bappenas. The LCDI projects Indonesia’s economic growth between 2030 and 2045 to be around 6-7% per year, while aiming to control greenhouse gas emissions in accordance with the NDC target (under the PRK-plus scenario). To facilitate these accomplishments, there is a pressing need to further increase the share of renewable energy sources in the energy sector.

The increase in the renewable energy mix must align with the achievement of a reliable, safe, and affordable 100% electrification target. Unfortunately, despite attaining a 99.63% electrification rate in 2022, the electrification ratio indicator in Indonesia has not yet ensured equitable access to electricity. For instance, a village is deemed electrified if at least one facility or house has access to electricity.

The utilization of a multi-tier framework, as proposed by ESMAP, can offer a more comprehensive understanding of how communities attain electricity access. This framework classifies electricity access into five distinct tiers, allowing for an overview of the quality of electricity services provided to consumers across various assessment indicators.

The 2021 NZmates report on the implementation of the energy access program in the Maluku region emphasizes the importance of identifying technical and economic potential in efforts to provide energy access. This identification process must involve local governments to enable their assistance in preparing Regional Energy Use Plans (RUED), thereby providing energy development guidelines for the respective regions. As of June 2023, RUED has been stipulated in 30 out of the 34 provinces in Indonesia. These guidelines not only support regions in achieving the national electrification target but also contribute to the renewable energy mix target.

One of the strategies for achieving national electrification goals involves the procurement of Diesel Power Plants (PLTD), particularly in remote areas. As of 2022, PLN has reported a total of 5,100 diesel power plants still in operation, requiring 2.7 million kiloliters of fuel oil (BBM) which amounts to approximately IDR 16 trillion for their operations. However, for remote areas that do not produce oil, PLTD faces new challenges related to fuel supply due to various factors, including fuel stock management and the lengthy process of fuel distribution and repairs. Consequently, power outages are not uncommon in these regions. This underscores the pressing need to enhance renewable generation capacity and establish reliable networks in such areas.

The Dediselization program has garnered significant government attention and is anticipated to be integrated into the Just Energy Transition Partnership (JETP) funding scheme, a project aimed at expediting energy conversion efforts in Indonesia. In alignment with this initiative, PT PLN has outlined dediselization measures for a 2.0 MW capacity of Diesel Power Plants (PLTD). This PLTD conversion program entails three schemes: conversion to renewable energy with a capacity of 499 MW, gasification to utilize gas as a fuel source for 304 MW, and interconnection with the grid for 1,070 MW. These efforts are projected to conserve 67 thousand kiloliters of fuel, curbing emissions by 0.3 million metric tons of CO2, while also contributing a 0.15 percent increase to the energy mix and fostering equitable access to sustainable energy for the people of Indonesia.

Furthermore, the endeavor to establish network connectivity between electricity generation centers and other regions demands serious consideration. Being an archipelago, the International Energy Agency (IEA) emphasizes the significance of an interconnected system between Indonesian islands to ensure equal access to electricity for all citizens. A dependable interconnection system holds the potential to influence electricity pricing, making it affordable for the general populace. The 2021-2030 RUPTL document outlines plans for the construction of 47,231 kms of transmission lines by 2030, which can be harnessed to support interconnection and the integration of renewable energy.

For the aforementioned reasons, IESR has invited experts to engage in discussions regarding the quality of electricity access in Indonesia, the advancement of dediselization, and the steps toward energy transition to attain the national electrification target. It is anticipated that through these discussions, the government, relevant stakeholders, and the general public will gain a fresh perspective on the energy transition process in Indonesia.



  1. To provide information about the status of national electrification and the progress of dediselization as a government program.
  2. To discuss the opportunities and challenges related to integrating renewable energy into the national electricity system.
  3. To deliberate on the role of renewable energy in expediting a just and equitable energy transition.
  4. To outline the implementation plan for the Indonesia Energy Transition Dialogue 2023.

Declare Bali Net Zero Emission 2045: Bali Government Targets 100 Percent Renewable Energy in Nusa Penida before 2030

press release

Bali, August 4, 2023 – A significant increase in the renewable energy mix is ​​needed to achieve the 2045 Bali Net Zero Emissions (NZE) ambition, 15 years ahead of Indonesia’s carbon-neutral target. In addition, using renewable energy and sustainable principles will create a positive image for economic activity and tourism.

Ida Bagus Setiawan, the Head of  Bali Labour, Energy, and Mineral Resources Agency in Bali Province, explained in a meeting titled ‘Towards Bali Net Zero Emission 2045’ held in Jayashaba, Denpasar, Bali, that the energy sector is responsible for 57% of total emissions in Bali. He added that the local government aims to reduce these emissions by achieving 100% renewable energy in Nusa Penida by 2030.

“Nusa Penida was pushed earlier to achieve net zero emissions compared to mainland Bali, one of which is because it is isolated from an electricity perspective,” said Ida Bagus.

The Institute for Essential Services Reform (IESR), which has been actively working with the Provincial Government of Bali since 2019, has recorded that the technical potential for renewable energy in Bali is relatively large, reaching 143 GW, including the technical potential for PLTS installed on land of 26 GWp and pumped hydroelectric power (PHES) of 5.8 GWh. Fabby Tumiwa, Executive Director of IESR, on the same occasion, mentioned that his party projects that in the next few years, the population of Nusa Penida, which will number around 62 thousand in 2022, will increase, as well as the growing tourism sector will increase demand for energy, including electricity. This can be met with renewable energy.

“The existence of large renewable energy potential and available renewable energy generation technology, manageable electricity demand, and relatively equal patterns of electricity load between day and night, as well as the support of PLN, make me highly confident that the electricity system is 100% renewable energy based. In Nusa Penida can be realized before 2030,” said Fabby.

Alluding to the condition of Nusa Penida, where currently one of the electricity needs is supplied from 7 units of Diesel Power Plants (PLTD) with a total capacity of 10 MW, Fabby said that replacing PLTD with renewable energy was a challenge in itself.

“The challenge is to replace the 10 MW PLTD, which is currently operating, within 2-3 years and improve the performance of solar PV Suana to be more optimal in the coming year. IESR has also conducted technical studies, and the study results show that technically and economically, a 100% renewable energy electricity system can be carried out in Nusa Penida,” he said.

Prof. Ida Ayu Dwi Giriantari, Head of the Center of Excellent Community-Based Renewable Energy (CORE), said the results of her study measured the potential for rooftop solar PV in Nusa Penida government buildings to reach 10.9 MW. In addition, she mentioned that large-scale solar PV has the potential to be utilized in Nusa Penida. According to her, the problem of land for installing large-scale PLTS is resolved with sufficient land in Nusa Penida.

“Solar PV in Suana, with a capacity of 3.5 MW, uses a land area of ​​4.5 hectares. Meanwhile, in Nusa Penida, there is potential for 10 thousand hectares of land for large-scale solar PV,” she explained.

The Provincial Government of Bali declared the Bali Action Plan Towards Bali Net Zero Emissions 2045, supported by the main partners of the Institute for Essential Services Reform (IESR), World Resources Institute (WRI) Indonesia, and New Energy Nexus Indonesia. The event was also attended by supporting partners from global and national philanthropic institutions, namely Bloomberg Philanthropies, IKEA Foundation, Sequoia Climate Foundation, ClimateWorks Foundation, Tara Climate Foundation, and Viriya ENB.

About Bali Net Zero Emission 2045

The Bali Net Zero Emissions 2045 Initiative consists of various efforts aimed at low carbon development in Bali through the transition to renewable energy, electric mobility, and climate entrepreneurship, all geared towards achieving Bali Net Zero Emissions by 2045. This initiative encourages collaborative action and work cooperation between the Provincial Government of Bali, various partners, communities, and stakeholders in Bali to accelerate the adoption of clean energy and encourage the active participation of the Balinese people in the low carbon development agenda. The parties involved include international institutions, non-profit organizations, independent research institutions, the private sector, entrepreneurship and start-up businesses, academic institutions, associations, and local communities. The main partners of this initiative are the Institute for Essential Services Reform (IESR), World Resources Institute (WRI) Indonesia, and New Energy Nexus Indonesia.