Having Slow Solar PV Development in 2022, Indonesia Needs to Push the Implementation of Supporting Policies

press release

Fabby Tumiwa delivered his speech at the Shine Bright: Advancing G20 Solar Leadership event


Jakarta, 27 October 2022 – To achieve the target of a 23% renewable energy mix by 2025 and the energy system’s decarbonization by 2060 or earlier, Indonesia needs to seriously improve and implement policies that encourage the development of renewable energy, especially solar energy. The utilization of solar energy is believed to be fast and strategic to achieve these targets. Presenting the complete review of the development of solar energy throughout 2022 and providing a projection in 2023, the Institute for Essential Services Reform (IESR) published the flagship report, Indonesia Solar Energy Outlook (ISEO) 2023.

Arifin Tasrif, Minister of Energy and Mineral Resources of Indonesia on the event of Shine Bright: Advancing G20 Solar Leadership organized by IESR, said that based on IRENA data, the cost of electricity (Levelized cost of electricity/LCOE) has decreased significantly by 88% between 2010 and 2021, from USD 41.7/kWh to USD 4.7/kWh.

“But based on current practice in the industrial sector, we get offers of up to USD 3/kWh, including USD 4/kWh battery costs,” said Arifin at the Shine Bright: Advancing G20 Solar Leadership event organized by IESR with support from Bloomberg Philanthropies, and in collaboration with the International Solar Alliance, and the Indonesian Solar Energy Association.

Furthermore, he explained that based on the energy transition roadmap in Indonesia, solar energy plays an important role in electricity in Indonesia with 421 GW of 700 GW coming from solar.

“We need support from local producers and industries to fulfil local requirement content (LCR), considering that Indonesia has mineral potential and critical material for solar PV, battery, and electricity network, Besides, the aspect the easy access to cheap financing, incentive, and other financing facilities is very important to provide a financial feasibility study and increase renewable energy investment such as solar energy, “explained Arifin.

Fabby Tumiwa, Executive Director of IESR, said that in general, Indonesia made some progress since 2018, although it is relatively slow in encouraging the development of solar energy. According to him, some reforms are needed in regulations and their implementation, especially before the deadline for realizing the target, which is only three years left.

“Rooftop solar power plants that have the potential of 655 GW for building only, can be built quickly and involve community investment, without overburdening the government. Moreover, to expect additional renewable energy generation capacity from the implementation of PLN’s Business Plan (RUPTL) 2021-2030, rooftop solar power plants can meet a renewable energy mix target of 3 to 4 GW in 2025,” said Fabby.

Fabby added that the government and PLN need to allow permits for rooftop solar power plant installation.

“Availability of soft loan funds from financial institutions can support the adoption of household-scale PV mini-grid. Also, encouraging the adoption of solar PV in industrial areas, and non-PLN business areas needs to be done,” suggested Fabby.

ISEO 2023 stated that the progress of Indonesia’s solar energy can be seen from the decline in the price of solar electricity obtained through a power purchase agreement (PPA) made by PT PLN (Persero) with Independent Power Producers (IPP). Between 2015 and 2022, solar PPA prices declined by 78%, from $0.25/kWh to $0.056/kWh. 

Furthermore, in terms of the project pipeline, there are currently eight projects that have been tendered totalling 585 MWp in capacity. 

“In terms of utility-scale solar power plants, Indonesia has the potential for floating solar power plants. Its future development can make Indonesia a leader, and at the same time realize Indonesia’s leadership in terms of energy transition and use of solar energy in the G20 and ASEAN,” said Fabby.

Dr Ajay Mathur, Director General, of International Solar Alliance said solar energy is a potential energy source to be developed considering the increasingly competitive price of the technology.

“The International Solar Alliance (ISA) is proud to associate with the Institute for Essential Services Reform (IESR) to drive forward our common goal of making solar electricity the energy source of choice across the world. Solar Energy is the world’s most abundant and clean energy source, but also the global energy imperative to drive international climate action due to its fast-decreasing cost,” said Mathur.

At the same time, IESR and ISA signed a memorandum of understanding to accelerate the adoption of solar energy in Indonesia. ISA is an international institution that has various experiences and members from many countries. It has carried out innovations and facilitation to support solar energy development globally. The scope of the collaboration between ISA and IESR includes mapping the domestic solar industry, capacity building, and identifying financing schemes.

ISEO 2023 considers that the establishment of the ceiling price-based pricing in Presidential Regulation No. 112/2022 is expected to provide more space for developers to submit their bids. This regulation has been drafted since 2019 and initially considered feed-in-tariff instruments to encourage the development of renewable energy, especially small scale. 

To encourage the effective implementation of PR 112/2022, a clear and transparent auction mechanism is needed, as a regular and planned auction schedule, as well as providing regulatory certainty and ease of licensing.

ISEO 2023 notes that local content requirements (LCR) are still one of the main obstacles in the auction of solar power plants in Indonesia. Based on Minister of Industry Regulation No. 5/2017, the minimum LCR value of goods for solar module components must reach at least 60% since 1 January 2019. However, the realization of the LCR of solar modules currently only reaches 47.5%. Moreover, the efficiency and price of domestic solar panels still do not meet the requirements of international financing bankability standards. 

“The government needs to review the solar module LCR value provision policy based on industry readiness while preparing a long-term solar module industry policy to decarbonise Indonesia’s energy system,” said Daniel Kurniawan, Researcher, Photovoltaic Technology & Materials Specialist at IESR and Lead Author of ISEO 2023.

On the adoption of solar PV, although the Ministry of Energy and Mineral Resources has issued Ministerial Regulation No. 26/2021, some of its provisions have failed to be implemented, resulting in the slow growth of solar power plants. PLN’s oversupply of electricity is suspected to be the cause of the limitation of rooftop solar power plant (PVP) utilization to 10 to 15 per cent of capacity by PLN in early 2022. If it continues, it will be difficult to realize the solar targets that the government has set, such as the government’s 3.6 GW rooftop solar PSN target by 2025, and the 2.3 GWp solar project pipeline of 31 declarators at the Indonesia Solar Summit 2022.

“The government, in this case, the Ministry of Energy and Mineral Resources and PLN, needs to immediately provide a solution to this issue. Not to hinder adoption at a very early stage of adoption but to nurture the growth of rooftop solar until it reaches self-sufficiency. This can be achieved by providing a stable policy environment for market growth and development of the solar industry,” said Daniel.

The Indonesia Solar Energy Outlook (ISEO) 2023 report was first launched this year. Initially, the progress of solar energy development within the framework of the energy transition was integrated into the Indonesia Energy Transition Outlook (IETO) report.

Shine Bright: Advancing G20 Solar Leadership Indonesia Solar Energy Outlook (ISEO) 2023 Launch and High-Level Conference


  • The event brings together policymakers at national and sub-national levels, business players, investors, and other important stakeholders to further commit their contributions to accelerate gigawatt-order of solar energy in Indonesia.
  • IESR’s first flagship solar report, Indonesia Solar Energy Outlook (ISEO) 2023, will be launched during this event; highlighting the role of solar energy for Indonesia’s decarbonization effort.
  • Recommendations and commitments from the event will be communicated prior to G20 high level meeting in November 2022.


  • Indonesia has committed to a net-zero economy by 2060 or sooner. This requires acceleration of renewable energy utilization in the country.
  • Solar energy has been identified as key to achieve 23% renewable energy target by 2025.
  • The government of Indonesia pledges 3.6 GW rooftop solar national strategic program until 2025, PLN commits 4.7 GW of IPP projects in their newest business plan.
  • Indonesia is poised to showcase energy transition project as part of its G20 presidency 2022.
  • India, holding G20 Presidency 2023 and home to International Solar Alliance (ISA), is a global leader in solar deployment and is expected to continue the energy transition agenda.

Significant Roles of Subnational Governments to Lead the Decentralization of Energy Transition

press release

Bali, 30 August 2022The 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.

Redefining Energy Access in Indonesia

Jakarta, 16 June 2022 – Energy is a primary necessity for all people. By having proper access to energy, people get the opportunity to improve their quality of life through education, social gathering, and even economic activity. Realizing its impact on human civilization, it needs serious attention, particularly in terms of its measurement and monitoring. However, the Indonesian government has an unclear method of measuring energy access around the country. Through the Ministry of Energy and Mineral Resources, the Indonesian government uses “ratio electrification” to define whether an area (a village, for instance) has access to energy or not. In other words, for instance, a village could possibly consist of fifty houses, and only one house has access to PLN’s services so it leads to the consideration as the whole village has been ‘electrified’ or already accessing electricity.

This facts was revealed by Marlistya Citraningrum, Sustainability Energy Access Program Manager, IESR in the webinar “Peeling the Onion: Monitoring, Evaluation, and Other Acronyms for Assessment and Learning in Energy Access” hosted by World Relief Institute (WRI) India

She also added that the government’s ratio electrification method only measures the tier-one electricity access, such as lighting which is often still not available 24 hours. There is no other technical aspect to define energy access in Indonesia.

The recommendation brought by the Institute for Essential Services Reform says that the Indonesian government must redefine energy access terms by including the quality of the electricity received by the community to define whether an area is considered electrified or not yet. 

The multi-tier framework approach can be utilized to define in which spot the quality of electricity in Indonesia. Multi-tier framework itself categorizes electricity from tier 0  to tier 5.

NoTierLoad LevelNotes
1Tier 00No access at all
2Tier 13-49 WTask lighting, phone charging, radio
3Tier 250 - 199 WMultipoint general lighting, TV, computer, printer, fan
4Tier 3200 - 799 WAir cooler, refrigerator, freezer, food processor, water pump, rice cooker
5Tier 4800 - 1.999 WWashing machine, iron, hair dryer, toaster, microwave
6Tier 52.000 W - higherFull access, such as air conditioner, space heater, vacuum cleaner, water heater, electric cookstove

Source: World Bank Document, Bhatia and Angelou 2015

A more comprehensive method to define energy access status is crucial to be implemented in Indonesia because once a method is not comprehensive, the measuring result is not representing the real condition and may lead to a misidentification. 

A pilot project of the energy delivery model by the Institute for Essential Services Reform in Boafeo, East Nusa Tenggara figured out that the community needs more than basic energy access. Community needs energy that can improve their livelihood and economy through coffee farming production, as well as improve the quality of education for their children. 

“If we refer to MEMR’s electrification ratio, we are not able to see the need to improve coffee farming production nor the hope to improve education output, because the village is already connected to the grid (PLN) in early 2021,” Marlistya explained.

She later emphasized that a misidentification of a condition may lead to the wrong offered solutions. Therefore it is very crucial to identify the actual issue and condition comprehensively. 

Showing Leadership in G20, Indonesia Needs to Increase Solar PV Development

JAKARTA, 20 April 2022 – Carrying the energy transition as the main topic of Indonesia’s presidency at the G20, Indonesia needs to show its leadership in pursuing a more massive renewable energy capacity, especially solar energy. Indonesia can also learn from the experiences of the G20 countries in encouraging the growth of solar energy and accelerating the spread of solar energy.

The Ministry of Energy and Mineral Resources of the Republic of Indonesia and the Institute of Essential Services Reform (IESR), in collaboration with BloombergNEF and the International Solar Alliance (ISA), held a workshop to take lessons from G20 countries in encouraging the application of solar power relevant to developing countries. The workshops were also not limited to policy frameworks, fiscal and financial instruments, market readiness, and human resource development.

Ali Izadi – Najafabadi, Head of Research APAC, BloombergNEF, expressed his optimism that Indonesia has the potential to accelerate the energy transition.

“Some analysts say Indonesia lags behind other G20 countries in renewable energy, especially solar power, but I believe Indonesia can catch up. Indonesia has many opportunities to reform policies or special regulatory measures focusing on improving the energy economy and the environment,” said Ali.

In line with Ali, Rohit Garde, Senior Associate for Solar Energy Financing at BloombergNEF, said that BloombergNEF measures state policies in the electricity sector and carbon policies. For example, Germany and England have 84% and 83%, respectively, which indicates that both countries have good procedures for PV mini-grid. Meanwhile, the Levelized Cost of Electricity (LCOE) of PV mini-grid in India, China, UAE, and Chile is the lowest due to high levels of solar radiation and large-scale PV mini-grid development. Meanwhile, the LCOE of PV mini-grid in Indonesia is the highest due to its small scale and high cost of capital.

“Indonesia must increase its ambitions by revising regulations and removing development barriers,” added Rohit Garde.

One of the important issues in Indonesia’s leadership in the G20 is the energy transition. Yudo Dwinanda Priadi, Expert Staff to the Minister for Strategic Planning at the Ministry of Energy and Mineral Resources, said that the power plant plan already has an Electric Power Supply Business Plan Electricity Supply Business Plan (RUPTL) 2021-2030. A greener RUPTL is a cornerstone of achieving zero carbon by 2060.

“Solar Power Plants (PLTS) have the largest optimization in Indonesia and will reach 4,680 MW by 2030. Therefore, solar energy has the most abundant potential. In addition, the cost continues to decline, and the rapid development of PV mini-grid technology has made solar power generation a priority. The development of rooftop PV mini-grid also includes better implementation and incentives for people who want to install rooftop PV mini-grid. The government has issued the Minister of Energy and Mineral Resources No.26/2021, and the rooftop PV roadmap is in the process as a National Strategic Program (PSN),” said Yudo.

On the other hand, Fabby Tumiwa, Executive Director of IESR and General Chair of the Indonesian Solar Energy Association (AESI), said solar energy development in Indonesia is relatively slow with several obstacles.

“In 2021, only 0.001 percent of its technical potential will be implemented. However, rooftop solar power generation has continued to increase in the last three years, and that is due to the support from government regulations. RUPTL 2021 is a signal to increase five times to 4.7 MW, and there are also other projects such as exports to Singapore, Riau Islands, and Batam. Therefore, this project has the potential for massive solar energy development,” said Fabby Tumiwa.

Fabby also added several reasons for the obstacles to the energy transition in Indonesia, such as the Domestic Component Level (TKDN).

“Problems in project development such as land and regulations on the Domestic Component Level (TKDN); existing projects require solar module devices from 40% to 60%, and this has not been met by industry in Indonesia and has not received financial assistance from the state; negotiations are quite long while other countries tend to be faster. The Vietnamese government has strong political will and commitment, regulation, implementation, and incentives for tariff policies related to net metering. What is also important is the policy certainty and transmission of the State Electricity Company (PLN),” said Fabby.

Kanaka Arifcandang Winoto, the Senior Business Developer from Mainstream Renewable Power, explained how Indonesia needs to accelerate to meet the renewable energy mix target of 23% in 2025.

“Indonesia is the largest energy consumer in ASEAN, accounting for almost 40 percent of ASEAN’s total energy use. With the significant potential of solar, geothermal, wind and hydropower resources, Indonesia is well-positioned to develop in a low-carbon energy system,” he said.

According to Kanaka, Indonesia is a key player in achieving 1.5℃, so cooperation with all stakeholders is needed to identify a national roadmap for realizing economic growth and climate security.

Dyah Roro Esti, Member of the DPR, Commission VII, explained that his party is open to public input, especially on renewable energy policies that are being discussed in the DPR RI.

 “Data from DEN, Indonesia must optimize 2.5 GW, and each area has potential, both solar and wind. Therefore, it is necessary to have the motivation and political will to cooperate with local governments in optimizing and realizing this potential. The House of Representatives (DPR) is working on the New Renewable Energy (EBT) Bill and will be open to suggestions. However, the EBT Bill (RUU) is still under discussion,” explained Dyah Roro.

On the other hand, regarding policies at the regional level, Ngurah Pasek, Head of the Sub-Division of Environment and Regional Development, Bappedalitbang Bali Province, added that Bali has implemented Perda 29 of 2020 concerning the General Plan of Regional Energy (RUED) whose derivative is Pergub 45 of 2019 about Bali Clean Energy.

“Installation to regencies and cities in Bali Province, which currently has reached 8.5 MW. The target of the Bali Provincial Government regarding budget refocusing is how the installation of solar rooftop solar panels in offices or companies can run well,” he said.

The development of rooftop solar power plants is also happening in Central Java. Nathan Setyawan, Sub-Coordinator of Natural Resources and Environment, Central Java Regional Development Planning Agency, explained some progress in supporting renewable energy in his area.

“Central Java is the only province that has developed and integrated economic recovery and the use of renewable energy. In 2021, we will encourage not only provincial governments but also regents and mayors and the private sector to implement rooftop solar power plants.”

He emphasized that increasing public awareness and support from the Ministry of Energy and Mineral Resources would encourage the use of communal solar power plants in remote areas. In addition, Nathan hopes that the availability of affordable clean energy supporting technology will help develop the local renewable energy industry.

“Hopefully, there will be a mini silicon valley to develop new renewable energy-oriented industries,” he added.***

Sticks with Biofuel Policy

In recent years, the government has been aggressively encouraging the use of biofuel as one of the main alternatives to fuel oil. However, many constraints and impacts on the economic, social, and environmental side arise in this biofuel use program.

The world’s biggest palm oil producer, and exporter, Indonesia, will push ahead with its ambitious biodiesel program even as prices of tropical oil have soared, which could increase the costs of producing biofuel. The B30 program stipulates fossil fuels must be blended with 30% palm oil. The mandate is aimed at soaking up bulging supplies in the top grower. But palm’s premium over gasoil has ballooned to record levels, driven by Russia’s invasion of Ukraine that has tightened global cooking oil supplies.

“We haven’t discussed the evaluated B30 program because it is still running as planned,” Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR) said. However, he said that the government could monitor crude palm oil and petroleum prices closely and will prepare options to anticipate any development without elaborating on those plans.

He continued that the problem arises because there are B40 mandates that have been postponed many times, rumors of the B40 loans, and others are skeptical if it is possible to launch B40 mandates in the current situation. But the biofuel strategy must go on because it’s also part of Indonesia energy’s strategy.

Indonesia’s efforts to increase the palm content in biofuel to 40% by 2021 were put on hold due to cheaper fuel costs and record-high palm prices. In addition, raising the blending rate would require the government to provide a significant incentive through the money it collects from palm oil export levies. As a result, road tests for vehicles powered by 40% palm biofuel may be delayed, but discussions on B40 are ongoing.

“Indonesia has several issues in launching the B40 because of the pandemic era. First, in 2020, the oil demands declined. As a result, CPO is lowered, significantly affecting the financial crisis. In 2021, there was uncertainty about the price, and the government didn’t want to give subsidies. The second problem is infrastructure. For example, part of the strategy for increasing biofuel is a refinery prepared by Pertamina in Balongan Refinery, and it’s still in development. But if these problems are solved, all the essential elements of starting the B40 this year make sense,” Fabby said.


The B40 plan was delayed again on high CPO prices, but Indonesia is optimistic about the year 2023 being implemented

Doubts have emerged over Indonesia’s plan to roll out B40-type biofuel this early year as the high price of CPO renders such fuel uneconomical. As a result, the Energy and Mineral Resources Ministry has announced a delay in implementing a mandatory 40 percent palm oil-based biodiesel (B40) policy to “prioritize stability” amid rising CPO prices. 

Based on The Jakarta Post’s1 articles on March 29, 2022, Energy Minister Arifin Tasrif said that the government would continue its B30 policy – of 30% palm oil-based biodiesel – in 2022 and devise solutions to maintain the price gap between CPO and biofuel prices. He said that technically B40 is ready to be implemented and is still reviewing whether they’re prepared to produce more CPO. 

“As we know that the B40 program was slated for implementation in July 2021 following the success of the B30 program in 2019, but it was delayed by a year as high CPO prices had made the fuel uneconomical and because of the pandemic condition, but the government had planned to conduct the B40 trial on this year and we optimistic it will be implemented on 2023,” stated Fabby.

Fabby said the government was still committed to escalating the biofuel policy and developing the development plan. As of 28 March 2022, CPO prices had risen 27.5% Year To Date (YTD). The government hopes that increasing the proportion of processed CPO in biofuel would help limit petroleum imports. Indonesia has long been one of the world’s largest crude oil and gasoline fuel importers.

In 2021, the B30 program reduced greenhouse gas emissions by an estimated 25 million tons, and the government studied the technological, economic, regulatory, and supporting industry aspects of implementing B40. Fabby suggested that the government begin implementing the mandatory B40 policy in 2023.


The Future of Biofuel Strategy

The use of biofuel continues to be increased by optimizing the production of domestic biofuels (BBN). With this policy, it is hoped that by 2027 Indonesia will no longer import fuel to save foreign exchange and improve the welfare of oil palm farmers through the mandatory biofuel program.

The Ministry of Energy and Mineral Resources (ESDM) stated that the implementation of biofuel has been successful for 15 years. However, even in biofuel with a blending rate of 30 percent, some time ago, bioavtur was tested on flights from Bandung to Jakarta and vice versa. It turns out that the results are entirely satisfactory, so it can continue to be improved.

Biofuel would act as the main substitute for petroleum fuel, especially in the transportation sector. However, based on IESR’s study, the future potential of biofuel is highly uncertain due to the rapid development of alternative technologies, especially electric vehicles. The government needs to be prudent in developing the long-term plan for biofuel and putting it under the broader energy transition plan. Increasing the biofuel mandate too aggressively could risk the infrastructure becoming stranded assets. 

The energy strategy tried to integrate biofuel planning with electric vehicle adoption and petroleum refinery development. In addition, to reduce the risk of stranded assets, investment in biofuel could be directed to retrofitting existing plants for co-processing or developing biofuel refineries that are more flexible in product portfolio and transformable to other products.



  1. B40 biodiesel plan delayed again on high CPO prices, 29 March 2022
  2. Critical Review on the Biofuel Development Policy in Indonesia
  3. Energy Intelligent Interview with Fabby Tumiwa 


Regional Leadership Determines Indonesia’s Energy Transition

Jakarta, March 9, 2022 – The Ministry of Energy and Mineral Resources recorded an increase of 217 MW in mid-2021. This brings the total renewable energy generating capacity in September 2021 to 10,807 MW. Nationally, Indonesia’s energy mix is ​​still dominated by fossil energy up to 85%. The Indonesian government has taken the initiative to accelerate the penetration of renewable energy in the energy mix, one of which is through the RUPTL (Electricity Supply Business Plan) document for 2021 – 2030. In this document, the government targets the addition of electricity from renewable energy plants by 51.6% or 20,923 MW. Cooperation with various parties, including local governments and the private sector is important to achieve the RUPTL targets and accelerate the energy transition in Indonesia. One of the focuses of the Indonesian government is to increase the installed capacity of renewable energy by including rooftop solar in the national strategy program.

Minister of Energy and Mineral Resources, Arifin Tasrif, in his remarks at the Governor’s Forum for Energy Transition, which was held on March 9, 2022 by the National Energy Council in collaboration with the Institute for Essential Services Reform (IESR) emphasized the role of local governments in Indonesia’s energy transition.

“Local governments are expected to make policies that are more in favor of developing new and renewable energy (EBT) and support energy saving efforts. Support can be seen from the Regional Medium Term Development Plan (RPJMD). The RPJMD which is oriented towards energy transition and green energy-based economic acceleration will be a key factor in the success of the energy transition in the regions. The Regional Energy General Plan (RUED) will also be a reference for making energy transitions in the regions.”

A total of 22 provinces have had Perda RUED until March 2022. One of them is Southeast Sulawesi. The Southeast Sulawesi Provincial Government has issued an Appeal Letter to the Governor of Southeast Sulawesi Regarding the Construction of Rooftop PV Installation.

“The government of Southeast Sulawesi has made efforts to encourage investment and development of new and renewable energy through solar PV and geothermal power plants (PLTP), hopefully they will become role models throughout Indonesia,” said the Governor of Southeast Sulawesi, Ali Mazi.

In addition, several regions have a fairly high renewable energy target, such as West Sumatra at 51.7% in 2025. Audy Joinaldy, Deputy Governor of West Sumatra, on the same occasion stated that his party is working on diversifying energy sources and one of the priorities is the installation of rooftop PV.

“Every year we install PV rooftops, especially for households that have not received PLN electricity. The installation of PV rooftops is also carried out in government buildings, as well as floating PV on Lake Singkarak,” he explained.

Audy added that one of the big obstacles for local governments to develop renewable energy is limited access to funding. So it needs assistance from the central government for financial access.

In response, Musri, a member of the National Energy Council, said that the government has issued supporting regulations such as the Minister of Energy and Mineral Resources Regulation 26/2021 which is expected to attract consumers to use renewable energy such as rooftop solar power plants, but there are further technical problems such as the PLN network.

“If we talk about the energy mix, of course this is not only from the electricity sector, other sectors such as transportation also play a role. To encourage the energy transition in Indonesia, local wisdom must be encouraged so that the steps taken are in accordance with the potential and the local social context,” Musri explained.

The province located in the eastern part of Indonesia, West Nusa Tenggara, is targeting 25% renewable energy in its energy mix by 2025. Zainal Abe, Head of the ESDM Office of West Nusa Tenggara, explained that his party is currently drafting a Governor’s Regulation on green energy.

“Hopefully in the future, the roofs of government offices, especially the MEMR Office can use rooftop solar panels,” said Zainal.

Energi untuk Memasak Selama #dirumahaja: Tetap Nyaman dengan Energi Bersih Terbarukan 

PT Pertamina baru – baru ini merilis catatan adanya peningkatan konsumsi LPG nonsubsidi rumah tangga di wilayah DKI Jakarta, Jawa Barat, dan Banten secara signifikan (MOR III) dengan adanya penerapan kebijakan dan imbauan physical distancing oleh pemerintah demi mencegah penyebaran dan penularan #Covid19 lebih luas. Aktivitas di rumah, termasuk memasak, meningkat karena anjuran tersebut. Menurut catatan Pertamina, terjadi peningkatan rata-rata konsumsi hingga 23% untuk produk LPG non subsidi Bright Gas 5,5 kg, dan 12 kg di wilayah Cirebon, Indramayu, Majalengka dan Kuningan. Menyikapi hal ini, pemerintah dalam berbagai kesempatan menyatakan bahwa pasokan LPG dipastikan tetap terjaga untuk mengantisipasi kenaikan permintaan dari masyarakat. 

Selain LPG, adakah sumber energi lain yang bisa kita gunakan untuk keperluan memasak di rumah?

Ada alternatif bahan bakar #cleancooking yang selain bersih, juga bisa memanfaatkan sumber energi terbarukan di sekitar kita, yaitu:


Biogas bisa didapatkan dengan memanfaatkan limbah dari kotoran ternak dan sampah/limbah organik yang kemudian difermentasi dan menghasilkan gas untuk menyalakan api pada kompor gas maupun kebutuhan penerangan. 

Mama Seni dari Sumba menggunakan biogas dari kotoran ternak dan bertani dengan slurry (produk sampingan dari biogas), beliau kini telah menjadi petani dan pengusaha perempuan yang sukses di desanya. Di Semarang, Ibu Suwanti menggunakan limbah tahu untuk usaha makanan rumahannya, yang selain menghemat biaya bahan bakar, juga membuat tetangganya senang karena tak lagi mencium bau limbah tahu yang kurang sedap. Dengan menggunakan biogas, kedua perempuan ini mampu menjadi pengusaha yang sukses dan menjadi panutan untuk masyarakat 

Jika ingin mengembangkan biogas mini rumahan yang cocok untuk Anda yang ingin punya biogas tapi tidak memiliki ternak, Yayasan Rumah Energi memberikan contoh penggunaan biogas rumah dalam skala kecil.

Tungku Sehat Hemat Energi (TSHE)

TSHE merupakan teknologi tungku bersih yang menyasar 40% rumah tangga di Indonesia yang masih menggunakan biomassa tradisional untuk memasak (misalnya kayu). Dengan menggunakan kayu cacah, pelet kayu, atau pelet serbuk gergaji; TSHE didesain untuk menghasilkan asap dan partikulat yang lebih sedikit, sehingga polusi dalam ruangan dapat berkurang. Kondisi memasak yang lebih bersih berdampak positif pada perempuan dan anggota keluarga lain, yang selama ini banyak mengalami gangguan kesehatan terkait pernapasan. TSHE juga memanfaatkan bahan organik buangan dari sekitar rumah, misalnya tempurung kelapa, sehingga dapat menghemat biaya energi rumah tangga. 

Sejak 2019, mitra IESR yang tergabung dalam Strategic Partnership Green and Inclusive Energy, yaitu Yayasan Lembaga Konsumen Indonesia, juga telah melakukan program peningkatan kesadaran masyarakat tentang energi bersih di Jawa Tengah, termasuk salah satunya melatih dan memberdayakan rumah tangga lokal untuk memproduksi TSHE.  

Kompor Surya (Solar Cooker)

Solar cooker merupakan inovasi #cleancooking yang dikembangkan terutama untuk masyarakat di perdesaan yang kesulitan mengakses gas atau listrik, juga untuk mengurangi deforestasi atau penggunaan kayu bakar secara berlebihan. Dengan desain kompor yg memusatkan panas dari matahari, pengguna dapat memasak atau menghangatkan makanan di dalamnya. 

Kompor Listrik dan Kompor Induksi

Kedua jenis kompor ini juga merupakan salah satu pilihan #cleancooking, keduanya menggunakan listrik sebagai sumber energi. Yang perlu diperhatikan adalah daya dan kualitas listrik yang kita miliki, juga keamanan jaringan listrik di rumah; karena daya yang diperlukan kompor ini cukup besar (~1000 Watt).

Nah, lebih bagus lagi jika sumber energi listrik rumah kita berasal dari PLTS atap, agar sumber listrik untuk memasaknya juga bersih dan sekaligus hemat! Baca-baca dulu soal PLTS atap di sini ya:

Jaringan Gas Rumah Tangga (Jargas)

Jargas merupakan jaringan pipa yang dibangun dan dioperasikan untuk penyediaan dan pendistribusian gas bumi bagi rumah tangga. Jargas disalurkan ke rumah tangga dari sumber gas terdekat, sehingga meminimalkan distribusi. Selain itu, penggunaan jargas juga dapat mengurangi impor gas untuk LPG. Memang tidak setiap daerah dapat menjadi sasaran jargas. Informasi lebih lanjut bisa merujuk ke akun media sosial PT Pertamina dan PGN, yang mengoperasikan jargas di Indonesia.

Jangan lupa tetap berhemat energi di rumah ya! 


Salam hangat,

Institute for Essential Services Reform


JawaPos | IESR Dorong Pemanfaatan Batu Bara untuk Kebutuhan Domestik

20 Januari 2020, 18:23:46 WIB

JawaPos.com – Direktur Eksekutif Institute for Essential Services Reform (IESR), Fabby Tumiwa menyebutkan bahwa saat ini banyak negara yang berlomba-lomba untuk memanfaatkan cadangan batu bara. Pasalnya, saat ini sedang terjadi transisi dari pemanfaatan energi fosil menjadi energi terbarukan.

“Ada transisi dari fosil fuel ke renewable (atau) energi terbarukan. Negara-negara yang menjadi tujuan ekspor kita beberapa juga punya batu bara, seperti Tiongkok dan India. Negara-negara tersebut juga ingin memanfaatkan batu bara mereka karena mereka tahu waktu pemanfaatan batu bara itu tinggal sedikit,” jelasnya di Balai Kartini, Jakarta, Senin (20/1).

Ia menyebutkan bahwa saat ini, dua negara tersebut tengah melakukan pembatasan ekspor. Tentu mereka ingin memanfaatkan batu bara sebagai energi alternatif di luar gas ataupun liquid natural gas (LNG).

“Jadi, mereka mencoba memodifikasi sumber daya alam, makanya sekarang Tiongkok atau India mengurangi ekspornya. Ini akan menjadi tren baru menurut saya,” tuturnya.

Indonesia diketahui sebagai salah satu pemain batu bara terbesar di dunia. Pada 2019 lalu produksi yang dihasilkan lebih dari 400 juta ton. Padahal, produksi untuk batu bara telah dibatasi oleh Kementerian Energi dan Sumber Daya Mineral (ESDM).

“Paling tidak kita bisa melihat dan regulasi itu tidak konsisten, seperti rencana energi nasional itu dengan tegas mengatakan membatasi produksi batu bara 400 juta ton di 2019. Kenapa perlu dibatasi? karena dampak pertambangan itu sangat dahsyat,” terangnya.

Di sisi lain, ada negara-negara yang terus menggenjot ekspor batu bara. “Rusia yang melakukan ekspor di sejumlah bagian di Asia Selatan. Afrika Selatan dan Kolombia juga masuk ke pasar Asia. Artinya produk batu bara Indonesia menghadapi saingan di pasar-pasar yang didominasi oleh Indonesia,” katanya.

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