IESR Executive Director, Fabby Tumiwa explained that new and renewable energy (NRE) investment has failed to achieve its annual goal since 2018. It leaves Indonesia with a sizeable funding deficit before it can meet its 23% share of renewable energy by 2025.
Read more on Kontan.
Fabby Tumiwa, Executive Director of IESR, said that the Indonesian government needs to make a transformative and massive effort to completely decarbonize the energy system by raising around USD 1 .2 trillion by 2050. Based on a study by IESR & the University of Maryland, the cost of ending 9.2 GW of PLTU in 2022-2030 requires around USD 4.6 billion. Furthermore, early retirement of all PLTUs in 2045 with an average age of 20 years requires USD 28 billion to compensate for stranded assets and the cost of decommissioning (closing) power plants.
Read more on Kompas.com.
The Executive Director of the Institute for Essential Services Reform (IESR), Fabby Tumiwa, explained that to achieve an investment of US$ 1 trillion by 2060, Indonesia needs an average investment of US$ 30 billion to US$ 40 billion for the next 30 years.
Read more at Kontan.
Ambassadors joined the discussion in ISEW 2022 on the topic of International cooperation in advancing energy transition in Indonesia
Jakarta, 09 October 2022 – The government of Indonesia needs a strong commitment to implementing energy transition through strong political and policy support. It supports global efforts to keep the global average temperature rise below 1.5 C, achieve energy security, and focus investment on sustainable development, such as renewable energy development. In addition, the involvement and participation of all Indonesian people are crucial in the energy transition process. Unity of action and strategy in the energy transition is a discussion that will be explored further at Indonesia Sustainable Energy Week (ISEW) 2022.
“This event will create a common understanding, provide understanding, especially regarding the efforts that need to be done in pursuing the Net Zero Emissions (NZE) target by 2060 or sooner,” said Rachmat Mardiana, Director of Electricity, Telecommunications and Informatics, Ministry of National Development Planning/Bappenas in media briefing and virtual launch of ISEW 2022.
Rachmat added that the Indonesian government hopes to escape the middle-income trap and become a developed country before Indonesia’s 100th anniversary in 2045. He emphasized that internalizing energy transition efforts in preparing long-term development plans is more important.
Yusuf Suryanto, Coordinator of Electricity, Directorate of Electricity, Telecommunications and Information, Bappenas, explained that to become a developed country, Indonesia needs to increase economic growth and expand its financial growth center area.
“The point is, Indonesia’s economy is expected to grow more than 6%, and the role of the eastern part of Indonesia needs to be increased to 25% so that economic growth outside Java will dominate,” said Yusuf.
Furthermore, he emphasized that the outer Java region’s economic growth could align with the energy transition process in eastern Indonesia.
Fabby Tumiwa, Executive Director of the Indonesia Clean Energy Forum (ICEF) & Institute for Essential Services Reform (IESR), said that Indonesia has an opportunity to increase energy consumption and supply while reducing the intensity of greenhouse gas emissions.
“The key in policies and regulations and proper planning to encourage low-carbon technologies to replace energy supplies of which 87%, according to government data, comes from fossil energy,” explained Fabby.
The Government of Indonesia’s commitment to the energy transition is demonstrated by the issuance of Presidential Regulation (Perpres) No 112/2022 concerning the Acceleration of Renewable Energy Development for the Provision of Electricity. This Presidential Regulation regulates the setting of tariffs for renewable energy, which has the potential to revitalize the renewable energy investment climate in Indonesia. Not only that, but this Presidential Decree also provides a mandate for the Ministry of Energy and Mineral Resources to prepare a roadmap for accelerating the termination of the PLTU operational period.
“Regarding the energy transition, the Minister of Energy and Mineral Resources compiled a roadmap to accelerate the termination of the PLTU operational period after coordinating with the Minister of Finance and the Minister of SOEs. Follow-up actions that it will carry out include consolidating and aligning perceptions with PLN and the relevant Ministries contained in this Presidential Regulation,” explained Andriah Feby Misna, Director of Various New Renewable Energy, Ministry of Energy and Mineral Resources.
Fabby added that to achieve Net Zero Emissions by the 2060 Scenario (NZE), new and renewable energy generation will be driven by 786.2 GW, with 60.2 GW coming from battery power.
The energy transition to renewable energy will have a social, economic, and environmental impact on the people of Indonesia. Indonesia, as a country that exports 75% of its coal production, the Indonesian economy will contract significantly if there is a decline in demand. We can see the strengthening climate commitment of Indonesia’s coal export destination countries such as China, India, Japan, and South Korea. Economically, constructing renewable energy plants is predicted to be cheaper than building a new PLTU in 2023 and more affordable than operating an existing PLTU in 2030. A production decline will have a negative impact based on an IESR study entitled Redefining Future Jobs. Employment along the coal value chain from production, processing, transportation, and end-use.
Widhyawan Prawiraatmadja, an Indonesia Clean Energy Forum (ICEF) member, emphasized that the energy transition must be carried out fairly. Anticipating the impacts, especially in the affected sectors, such as the coal industry, needs to be done.
“Workers, especially in sectors undergoing adjustment, such as in the coal sector, need to be prepared for their capacity and capability to switch to clean energy,” he explained.
Widhyawan said that energy transition needs to be ensured with the support of incentives from the government. Furthermore, he also encourages public awareness and contribution to energy efficiency, which is still far behind developed countries.
Indonesia’s energy transition process will be discussed at ISEW 2022, especially concerning accelerating the retirement of Indonesian PLTU. ISEW 2022 will discuss various aspects of support, inclusiveness, and mitigation strategies in detail on the implications of the energy transition that Indonesia needs to prepare for the energy transition process.
ISEW was held in collaboration with the Indonesia Clean Energy Forum (ICEF), the Institute for Essential Services Reform (IESR), and Clean, Affordable, Secure Energy for Southeast Asia (CASE). CASE is a cooperation program between two countries: Indonesia – Germany (Directorate of Electricity, Telecommunications and Information Technology, Ministry of National Development Planning/Bappenas, and funded by the Ministry of Economy and Climate Action of the German Federation Government). Previously, it routinely held discourse on energy transition in Indonesia at the Indonesia Energy Transition Dialogue (IETD), which this year participated in ISEW 2022. First maintained in 2022, ISEW will last five days from 10-14 October 2022 with the theme Reaching Indonesia’s Net Zero Energy System: Unite for Action and Strategy. All levels of society can participate in this activity free at isew.live.***
Energy transition is becoming an increasingly popular word in 2022. This is a good sign to spread the issue of energy transition to more and more people. We are currently living in a time that requires fast action to deal with the climate crisis that is already happening right in front of our eyes. The energy transition is a systematic solution to reduce greenhouse gas (GHG) emissions which are the cause of the increase in the earth’s temperature, causing the climate crisis.
Various groups of scientists such as the Intergovernmental Panel on Climate Change (IPCC) have warned that our time to contain the rate of increase in Earth’s temperature is getting shorter. Currently the earth’s temperature has increased by 1.1 degrees Celsius from pre-industrial times, and the whole world is trying to contain the rate of increase in the earth’s temperature no more than 1.5 degrees.
To achieve this goal, by 2030 we must cut 45% of global GHG emissions. As one of the world’s largest emitter, Indonesia is responsible to reduce emissions, especially in the energy and land use sectors.
From the energy sector, to reduce GHG emissions and in line with the 1.5-degree goal, Indonesia must retire 9.2 GW of coal plants by 2030 and gradually retire all coal capacity by 2045. The decrease in the number of coal capacity must also be accompanied by an increase in renewable energy generation massively as well as improving the quality of transmission and distribution networks.
Fabby Tumiwa, Executive Director of IESR, in the Young Voices forum organized by the Foreign Policy Community of Indonesia (FPCI) stated that if Indonesia continues to develop fossil energy, emissions from the energy sector will continue to increase.
“If we continue to develop fossil energy, our emissions will increase by three times. To avoid this, the coal fleet must be retired, and renewable energy must be added,” explained Fabby.
Kuki Soejachmoen, Co-Founder and Executive Director of the Indonesia Research Institute for Decarbonization (IRID) highlighted the inconsistent energy transition policies at various levels.
“There are some policies that do not support each other. For example, in international forums we are committed to transition, but there are no supporting policies and enabling environment. Thus, the commitment cannot be carried out,” explained Kuki.
Kuki also added that Indonesia is in a period of development which means that the demand for energy is predicted to continue to rise, if energy development is still based on fossil fuels, of course this will make Indonesia’s emissions continue to rise.
Melissa Kowara, activist for Extinction Rebellion Indonesia, assessed that, although the term energy transition has become increasingly popular, the policy is still not visible.
“Although the Indonesian government and countries in the world have made the energy transition a priority issue, in practice they have not realized the energy transition and some even tend to be ‘misguided’, such as the plan to use CCS/CCUS for coal power plants,” said Melissa.
Responding to this, Fabby Tumiwa said that public encouragement is indeed needed for policy reform for the energy transition.
“Currently there are several policy changes, which if implemented properly can help us carry out the energy transition. Here, one of the roles of the public can be to monitor how the government implements these rules and also to remind them when there is negligence,” concluded Fabby.
Bali, 30 August 2022 – Local governments and communities can be the catalyst for accelerating the energy transition. The decentralized energy transition requires a relatively shorter time because it is carried out on a small scale and the impact can be directly felt and seen by the community.
Ganjar Pranowo, Governor of Central Java, in the G20 parallel seminar “Decentralizing energy transition: Advancing the role of the community and subnational government” (30/8), that in the context of developing renewable energy, asymmetric decentralization is needed, which means that each local government is given sufficient space to design the development of renewable energy according to the potential and situation of the region.
“The potential for energy independence in these villages, from a business perspective, is not good because the scale is relatively small for a business scale, but if we don’t make examples such as installing 20 kWp solar PV for 8 MSMEs in Jepara, off grid solar PV for water pumps, or micro-hydro with a capacity of 15 kWp that electrifies 75 households, by really utilizing the potential that exists locally, it will not be realized, so we need the courage to change,” said Ganjar.
Ida Ayu Giriantari, Special Staff for the Governor of Bali, stated that the community, especially the Balinese, have a high enough awareness to protect the environment and switch to more environmentally friendly energy sources.
“Clean energy has been the foundation of Bali’s life and vision for development since the beginning and was stated in Pergub 45/2019, when the central government made clean energy policies nationally, we felt that there was support from the central government,” he said.
In March 2022, the Governor of Bali issued a circular letter for government offices and tourism buildings to install rooftop solar. This is one of the ways to pursue Bali’s target of achieving carbon neutral status by 2045.
“With the cooperation of all stakeholders and the community, I am optimistic that we can achieve Bali Net Zero Emission 2045,” said Ida Ayu.
Passed by the Batang Hari river, Jambi province began to introduce the use of renewable energy in the 2000s including hydropower, wind (Tanjung Barat and Timur), and solar.
“Currently we are preparing an integrated energy consumption assistance program for kitchens and households, or what we call the Boenda program. We will launch it soon,” explained Abdullah Sani, Deputy Governor of Jambi at the same event.
Sani continued that the Jambi provincial government is committed to working with the central government and the private sector to develop energy transition because the available resources are considered abundant but still need to transform them into usable energy.
Bob Saril, Director of Commerce and Customer Management of PT PLN stated that his party as an electricity provider in Indonesia has designed an energy transition scheme through the RUPTL (General Plan for the Provision of Electricity) based on renewable energy.
“In the current RUPTL, the share of renewable energy reaches 52%, this is the first step in the transition we are planning. That after 2022, we will no longer add new coal commitments,” said Bob.
Chrisnawan Anditya, Head of the Planning Bureau of the Ministry of Energy and Mineral Resources, stated that the differences in NRE potential in various regions are a technical challenge as well as a great opportunity for our energy system.
“This allows the sharing of NRE-based energy, when the area experiences energy abundance or scarcity. In order for this to happen, an integrated power system is needed (SmartGrid and SuperGrid),” explained Chrisnawan.
The energy sector is expected to become a major emission contributor if not taken seriously. Togap Simangunsong, Expert Staff to the Minister of Home Affairs for Social Affairs and Inter-Agency Relations, the Ministry of Home Affairs, explained that his party continues to monitor the provinces in drafting the RUED (Regional Energy General Plan) as a derivative of the National Energy General Plan (RUEN).
“27 out of 34 provinces already have Regional Regulations on RUED and a number of provinces are still in the process with various progress for the preparation of their RUED,” said Togap.
Fabby Tumiwa, Executive Director of IESR reminded regional leaders to align the RUED with the RPJMD so that the policies made are in line so that their implementation can run smoothly. He also emphasized the importance of community participation in energy transition initiatives in the regions
“The community can participate in investing in renewable energy by installing rooftop solar panels in their respective homes. Local governments can also contribute by allocating budgets to this sector. If domestic investment grows well, foreign investment will be more interested to chip in, ” explained Fabby.
Bali, 30 August 2022–The post-pandemic economic recovery by staying focused on making ambitious climate mitigation efforts through low-carbon development is a step that needs to be taken by local governments. The success of low-carbon development is also inseparable from planning for a just energy transition. The commitment of various parties, including local governments and communities to promoting the energy transition, is crucial considering that decentralization of the energy transition will have multiple impacts.
The Governor of Central Java, Ganjar Pranowo, said that through the Central Java Energy and Mineral Resources Office, he was actively pushing for energy transition efforts in his region. Energy transition policy instruments such as governor’s circular letters, regional secretaries, and various initiatives such as the declaration of Central Java to become a solar province in 2019, are ways to attract the private sector and the public to utilize renewable energy through the adoption of rooftop solar. Until Q2 2022, the total installed PLTS capacity in Central Java Province reached 22 MWp. The Central Java Provincial Government also supports the use of other renewable energy that is abundantly available, such as livestock manure biogas and micro hydro power plant(MHP), with government programs or encouraging community collaboration.
“Asymmetric decentralization by inclusion with (treatment-red) specifically in every location. With collective awareness, the potential for renewable energy in the area is checked and stimulated,” said Ganjar. This, according to Ganjar, will encourage a faster transformation.
Central Java’s climate commitment is also shown by starting to use electric vehicles as provincial government official vehicles.
Togap Simangunsong, Expert Staff of the Minister of Home Affairs for Social Affairs and Inter-Institutional Relations, Ministry of Home Affairs appreciated the good practices carried out by the Central Java Provincial government. He said that his party and the Ministry of Energy and Mineral Resources are currently drafting a Presidential Regulation that strengthens the authority of regional/provincial governments in the administration of government affairs in the field of energy, mineral resources, and sub-sector of new and renewable energy.
“Through this, it is hoped that local governments can provide support in efforts to achieve the target of the new renewable energy mix as an effort to reduce greenhouse gas emissions so that local government commitments are made to accelerate energy justice following their authority,” said Togap representing the Minister of Home Affairs, Tito Karnavian in a webinar entitled “Energy Transitional Decentralization: Increasing the role of communities and local government” organized by the Institute for Essential Services Reform (IESR) and the Central Java Provincial Government.
In addition, Chrisnawan Anditya, Head of the Planning Bureau, Ministry of Energy and Mineral Resources said that the utilization of renewable energy potential will open up opportunities in building a green national economy and as an effort to recover the economy after the pandemic under the G20 Presidency’s theme, “Recover Together, Recover Stronger”.
“Each region has a special new renewable energy potential that can be used to improve the welfare of local communities. The difference in the potential for new and renewable energy between regions is a technical challenge, as well as a great opportunity for our energy system. This condition allows the sharing of energy based on new and renewable energy when the area experiences energy abundance or scarcity. For this to happen, an integrated electric power system (smart grid and super grid) is needed,” explained Chrisnawan on the same occasion.
Furthermore, strong leadership at the regional level will be able to mobilize the community to make the cooperation of energy transition. This was stated by Fabby Tumiwa, Executive Director of IESR. He said the initiative and leadership of the local government will be able to answer the problem of access and security of energy supply by utilizing the abundant renewable energy potential in the area.
“Indonesia’s energy transition requires the construction of hundreds or even thousands of gigawatts, renewable energy generation, transmission and distribution infrastructure and energy storage systems. But by starting to divide it into small units, the big problems can be more easily solved and carried out by more parties,” said Fabby.
He added, based on the IESR study, that the decarbonization of the energy system in Indonesia will cost USD 1.3 trillion by 2050, with an average investment requirement of USD 30-50 billion per year. This amount is 150%-200% of the current total investment in the entire energy sector.
“This investment need is costly and cannot be borne solely by the government and SOEs. But this large investment can be met if we take into account the potential of the contribution and innovation power of the community as well as the capabilities of local governments. Citizens’ contributions and innovations can mobilize funding from the government, local government and village governments, as well as funding from the private sector and non-governmental institutions,” he added.
Bali is the first province in Indonesia to have a special governor regulation for clean energy and electric vehicles. In the Governor’s Regulation on Bali Clean Energy, the Governor of Bali encourages the use of renewable energy for various sectors, especially rooftop solar power plants. This effort is carried out to realize the vision of low carbon development in Bali and concrete steps for sustainable tourism.
“Due to the pandemic, Bali’s tourism has stumbled, after the pandemic, Bali has started to rise. Several tips have been implemented, such as the governor’s regulations and circulars regarding the adoption of rooftop solar power plants. Actually, the main target is tourism, but first, do a pilot in the government,” said Ida Ayu, Expert Staff to the Governor of Bali.
The plans and steps for achieving renewable energy targets in the Regional Energy General Plan (RUED) are also carried out by the Jambi Provincial government. The Governor of Jambi, Al Haris, through the Deputy Governor of Jambi, Abdullah Sani, emphasized his commitment to work together with the central and private parties to develop regional energy transitions because the resources they have are very sufficient, only to use and transform natural resources into energy that can be enjoyed by the Jambi community in particular.
The Jambi Provincial Government through the Department of Energy and Mineral Resources has also collaborated with IESR for the implementation of RUED and energy conservation efforts within the local government. Currently, the Governor of Jambi is in the process of issuing a governor regulation for the use of PV mini-grid as a substitute for energy subsidies.
C20 would like to bring Indonesia’s PLN, an expert from South Africa, an expert from the Republic of Korea, Mexico’s CFE (Comisión Federal de Electricidad), and India’s NTPC (National Thermal Power Corporation Limited) to have a discussion on the role and perspectives of utilities’ role in mitigating climate change.
Continue reading
Dengan mengirimkan formulir ini, Anda telah setuju untuk menerima komunikasi elektronik tentang berita, acara, dan informasi terkini dari IESR. Anda dapat mencabut persetujuan dan berhenti berlangganan buletin ini kapan saja dengan mengklik tautan berhenti berlangganan yang disertakan di email dari kami.
Newsletter
By submitting this form, you agree to receive marketing-related electronic communications from IESR including news, events, updates and promotional emails. You may withdraw your consent and unsubscribe from these at any time, for example, by clicking the unsubscribe link included in our emails.
Newsletter
