The Institute for Essential Services Reform (IESR) predicts that increased use of subsidized 3 kg LPG and electricity will cause this year’s energy subsidy and compensation budget to fall short of the government’s estimate of Rp 339.6 trillion.
Read more on Kontan.
The Institute for Essential Services Reform (IESR) assesses that sustainable development with minimal emissions is believed to bring Indonesia out of the middle-income trap.
Read more on Warta Ekonomi.
Several steam power plants in Indonesia are set to retire soon due to the Just Energy Transition Partnership’s (JETP) funding scheme for energy transition, despite several giant power plants still being operational.
Read more on Bisnis Indonesia.
The government will build a Super Grid, a giant electricity network infrastructure network, to encourage the development of new and renewable energy and maintain the stability and security of the electricity system.
Read more on Kontan.
Jakarta, 2 August 2023 – During the G20 Summit in November 2022, Indonesia received a Just Energy Transition Partnership (JETP) funding commitment from International Partners Group (IPG) countries in the amount of USD 20 billion. JETP is a cooperation mechanism for climate finance, and Indonesia is the second country to receive this funding commitment after South Africa.
Indonesia is required to draw up a Comprehensive Investment Policy Plan (CIPP) and complete it on August 16, 2023. The scope of areas that can be included in JETP funding is the electricity sector including power plants owned by PLN as well as the private sector.
Described by Deon Arinaldo, Energy Transformation Program Manager, Institute for Essential Services Reform (IESR) in the webinar “JETP Energy Transition: What and How Does It Work?” organized by AJI (Independent Journalist Association) Jakarta, that this JETP momentum is an opportunity to accelerate the energy transition and policy reform, particularly in the electricity sector.
“One of the expected outputs is a comprehensive investment plan and policy document. This document should be used as a guide for the energy transition roadmap in Indonesia,” explained Deon.
Deon also added that the JETP agreement included discussions on the development of the renewable energy industry and aspects of sustainability. The sustainability aspect is one of the important components in this partnership as well as an aspect that takes time to design because it is hoped that this sustainability aspect can mitigate the negative impacts that arise on communities affected by the energy transition.
Deon continued, to achieve the electricity sector emission reduction target agreed in JETP, which is a maximum of 290 million tons of CO2 in 2030, Indonesia needs to cut coal power plant capacity by 8.6 GW before 2030.
Ahmad Ashov Birry, Program Director for Trend Asia, stressed the importance of paying attention to the sustainability aspects of the Just Energy Transition Partnership scheme.
“It is important not to treat JETP with a project approach, but with a policy approach so that it has strong legal binding,” added Ashov.
Ashov assessed that although JETP is currently subject to Presidential Regulation 112/2022, it is still not strong enough because Presidential Decree 112/2022 itself has not yet sent a strong signal to stop coal operations.
The Bersihkan Indonesia Coalition formulates guidelines on aspects of justice for JETP including ensuring that the investment plan preparation process is accountable, transparent, participatory, fulfills human rights, is ecologically & economically just, and transformative.
Jakarta, 25 July 2023 – Southeast Asia has emerged as a focal point for both economic development, and energy growth. The increasing energy demand within the ASEAN region is to be expected to be met through the expansion of renewable energy. Notably, certain ASEAN countries have achieved noteworthy progress in renewable energy development, exemplified by Vietnam’s exponential growth in solar energy over recent years.
Fabby Tumiwa, the Executive Director of Institute for Essentials Services Reform and the Chairman of The Indonesia Solar Energy Association said that ASEAN must establish strong cooperation in developing solar PV manufacturing capability.
“Southeast Asia countries must ensure affordable access to this technology by establishing a solar PV manufacturing and supply chain that includes silicon ingots, wafers, cells, and other components such as low-tempered iron glass, as well as the balance of system components such as inverters and controllers,” he said.
Fabby added that Southeast Asia has the potential to become a solar PV manufacturing hub, supplying both domestic and global demand. Currently, seven Southeast Asia countries already have manufacturing capacity in various stages, with a total annual capacity of 70 GW of solar module production, with Vietnam supplying half of this capacity.
Monika Merdekawati, research analyst for sustainable renewable energy development, ASEAN Centre for Energy (ACE) during the ASEAN Solar Summit 2023 explained that while solar energy adoption in ASEAN is on the rise, the pace of progress is insufficient to accelerate the energy transition. Vietnam’s remarkable strides in augmenting its solar capacity have been associated by diversification efforts in its renewable energy development plan in its PDP8 (Vietnam’s energy planning).
“It’s similar to Thailand who started to look for biomass development in its priority program plan,” said Monika.
She further highlighted the necessity for Indonesia to devise innovative strategies to attain its goal of achieving a 23% renewable energy mix in 2025.
Within the context of Indonesia, the state-owned utility company PT PLN heavily relies on the 2021-2030 RUPTL (Electricity Supply Business Plan) famously recognized as “green RUPTL” to expedite its renewable energy endeavors. Warsono, the EVP for electricity System Planning, PT PLN on the same occasion said that PLN aims to incorporate5 GW of renewables by 2030.
“The main challenge to deploy renewables, particularly solar, is the fulfillment of local content requirements of the PV component. It means we need to grow the local industry for solar PV components,” he said. Furthermore, PLN is committed to ensuring equilibrium between energy supply and demand of energy.
Mohammad Nazri bin Mizayauddin, Chief Strategy Officer Sustainable Energy Development Authority, Malaysia shared his view on Malaysia strategy to enhance renewable energy penetration.
“People usually look at the large-scale ground mounted solar PV, but now let’s realize the other potential in the solar rooftop. The rooftop itself is an asset,” he said.
According to Nazri, Malaysia has been facing issues related with the energy subsidy therefore the Government must make sure that the market is mature enough to slowly detach the subsidy.
Eka Satria, Director and CEO of Medco Power Indonesia presented the indispensable correlation between growth of the solar PV component industry and expanding market demand. He stressed the importance of compiling and implementing a comprehensive roster of potential projects to instill investor confidence.
“To accelerate solar energy deployment, we need a strong PV industry in Indonesia. To grow the PV industry a long list of committed projects to guarantee the investors that their money wouldn’t be lost,” Eka explained.
Eko Agus Nugroho Director of Machinery and Agricultural Machinery Industry, Ministry of Industry agreed that the solar cell technology is advancing rapidly, urging Indonesia to accelerate its pace in keeping up with the advancement.
“There are 21 local producers making solar modules currently and the total capacity is still below 500 WP. The ministry wants to map the capability of the (solar) industries to fulfill the need from the PLN and other developers,” he said.
Eko also revealed plans for the upcoming announcement of a consortium dedicated to local solar industry manufacture in the ensuing months.
Kahfi sat in a coffee shop in Semarang, and his eyes focused on the laptop monitor in the corner. He periodically leaned in to check his incoming emails and ensure all the reports had been sent out. He appeared serious about his work.
Read more on IDN Times.
According to a recent study titled “Health Benefits of Just Energy Transition and Coal Phase-out in Indonesia” by the Center for Research on Energy and Clean Air (CREA) and the Institute for Essential Services Reform (IESR), terminating new coal-fired power projects and shutting down existing coal-fired power plants in Indonesia by 2040 can prevent 180,000 deaths caused by air pollution. It can also reduce healthcare expenses by US$ 100 billion or IDR 1,500 trillion over the next few decades.
Read more on Neraca.
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