The realization of new renewable energy (NRE) investment at the beginning of this year is projected to remain quiet. The implementation of the General Election (Pemilu) and the absence of an auction of renewable energy plants by PLN are reasons for realizing NRE investment until the first quarter of 2024, which still needs to look promising.
Read more on Kontan.
Achieving the national economic development targets in 2045 would drive capacity expansion in several key industries in Indonesia, such as iron and steel, cement, ammonia, pulp and paper, and textile industries. According to the latest IESR study, the five industries are responsible for about one-third of the national industry emissions in 2020 or about 102 MtCO2. This is because many of those industry players use outdated production technologies that work inefficiently and consume fossil fuels either as feedstock or fuel sources. In other cases, the industry plan its capacity expansion utilizing the carbon-intensive technology which could create emission lock-in for decades to come. Also, the currently low adoption of sustainable raw feedstock materials in cement, iron and steel, and papermaking industries drive the emissions to increase its emission by an additional 50 MtCO2 per year by 2050, and collectively with other industry subsectors, will increase the sector emissions to double in the same year.
Other than that, with the industry and commercial sectors’ landscape in Indonesia are dominated by smaller businesses of about 99%, it is also imperative to consider these smaller businesses’ role in Indonesia’s emissions portfolio. From the IESR study, it has been revealed that with the number of MSMEs reaching 65 million businesses in 2021, the least approximation of total estimated energy-related emissions could reach up to 216 MtCO2 per year in 2023, or about half of the industry sector’s emissions, including emissions generated from burning fuel, industry processes, and waste. Such high CO2 emissions are caused largely due to the very low understanding of MSME actors on how to implement energy efficiency measures as well as the lack of financial and technical capacities to tap into renewable fuel and electricity to support their businesses.
Understanding the timely urgency of decarbonizing industries of all sizes, Institute for Essential Services Reform (IESR) intends to formulate a strategic communication and advocacy plan to increase public awareness on the topic and drive the industry’s transformational change and increase the adoption of lower carbon technology and sustainable practices among large industries and SMEs. It is expected that the consultant develops the communication and advocacy plan following the Specific, Measurable, Achievable, Relevant, and Time-Bound (SMART) principle with at least a one-year timeframe. The successful consultant will provide input on methods, content, and implementation strategies. The strategy must include the use of online tools and new media outlets, including IESR’s existing social media accounts and website.
All required documents can be downloaded through this link (s.id/documentsrfpcommsiesr), and expected to be received to IESR until 10:00 p.m. Indonesian Western Standard Time (WIB, GMT+0700) on Friday, 19 April 2024. Any proposals received after this date and time will be regarded as inadmissible. All proposals must be signed by an expert, official agent, or company representative submitting the proposal.
Proposals will be accepted until 10:00 p.m. Indonesian Western Standard Time (WIB, GMT+0700) on Friday, 19 April 2024. Kindly address the Program Manager Energy Transformation IESR at deon@iesr.or.id and the Coordinator of Industrial Decarbonization Project at faricha@iesr.or.id for inquiries.
For more detail :
RFP-IESR-Strategic-Communication-and-Advocacy-Plan-in-Promoting-Low-Carbon-Solutions-Adoption-for-Indonesias-Large-and-Small-Medium-Industries.docx-1
Jakarta, April 2 2024 – Urban areas are centers of carbon-intensive activities. High population, dense buildings and intensive energy use contribute to increased greenhouse gas emissions. Climate Transparency 2022 noted that direct and indirect emissions from the building sector in Indonesia accounted for 4.6 per cent and 24.5 per cent of total energy-related carbon dioxide emissions in 2021, respectively. For this reason, the decarbonization of urban areas is one of the crucial efforts to reduce carbon emissions and create sustainable areas, by the Paris Agreement to achieve zero carbon emission targets.
The Government of Indonesia through the Ministry of Energy and Mineral Resources (MEMR) in collaboration with the German Federal Ministry for Economic Affairs and Climate Action (Bundesministerium für Wirtschaft und Klimaschutz/BMWK) and supported by various other ministries by the recommendations of the Ministry of Energy and Mineral Resources agreed to support urban decarbonization efforts through the Sustainable Energy Transition in Indonesia (SETI) program. This program involves consortium members consisting of Gesellschaft für Internationale Zusammenarbeit (GIZ) in Indonesia, Yayasan Indonesia Cerah, Institute for Essential Services Reform (IESR), and WRI Indonesia.
Malindo Wardana, Program Manager of Sustainable Energy Transition in Indonesia (SETI), Institute for Essential Services Reform (IESR), explained that one of the important initiatives of SETI is the Urban Energy Lab. The Urban Energy Lab aims to develop a sustainable local energy ecosystem in urban areas, especially in selected cities. It aims to support a better and more sustainable built environment.
“The selection criteria for the cities that will become SETI projects include the potential for renewable energy in the region, existing sustainability programs, and the willingness of the cities to implement energy decarbonization in the building sector,” Malindo said.
Malindo in the SETI Urban Energy Lab Focus Group Discussion event held on Tuesday (2/4/2024) said, the process of determining the pilot city for the SETI program through the stage of forming a network of potential cities. Cities that are members of the potential city network will then be selected by the Directorate General of New Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources & the SETI consortium as pilot cities. These pilot cities will receive additional support in the form of matchmaking activities between building owners/managers and energy service companies, capacity building such as energy manager/energy auditor certification, integrated energy planning modeling, and energy conservation.
Coordinator of the Energy Conservation Technical Guidance and Cooperation Group, Ministry of Energy and Mineral Resources, Hendro Gunawan said that the government has revised Government Regulation (PP) No. 70 of 2009 into Government Regulation (PP) No. 33 of 2023 concerning Energy Conservation which is a concrete step by the government to regulate the use of energy that is economical, rational and wise. In this regulation, the building sector with an energy use limit of more than or equal to 500 TOE (Ton Oil Equivalent) per year is obliged to carry out energy management.
“Local governments also should implement energy management in buildings that are owned, managed and financed through the state revenue and expenditure budget (APBN) or regional revenue and expenditure budget (APBD),” Hendro said.
Hendro also mentioned the existence of rules that strengthen the authority of provincial regions in utilizing renewable energy in the regions through Presidential Regulation (Perpres) Number 11 of 2023 concerning Additional Concurrent Government Affairs in the Energy and Mineral Resources (ESDM) Sector in the New Renewable Energy Sub-Sector.
He hopes that the existence of these regulations and the implementation of the SETI program will be able to support local governments in implementing energy efficiency in buildings, as well as efforts to increase the use of renewable energy in buildings, to reduce the impact of climate change and build a sustainable environment.
Jakarta, March 28, 2024 – The National Energy Council (DEN) plans to adjust the renewable energy mix target. Currently in the draft Government Regulation on National Energy Policy (RPP KEN), DEN plans to reduce the national renewable energy mix target to 17-19 percent by 2025. Previously, the renewable energy mix target was 23 percent by 2025.
The Institute for Essential Services Reform (IESR) considers this a step back from the Indonesian government’s commitment to overseeing the energy transition.
Raditya Wiranegara, IESR Research Manager, in a hearing with the National Energy Board expressed his concern behind the setting of the renewable energy mix target.
“IESR has previously conducted modeling that has been published in our annual report, Indonesia Energy Transition Outlook (IETO). Our modeling results show differences with the modeling results that form the basis for the formulation of the KEN RPP. This is especially evident in the final energy growth, where in the modeling for IETO we used Bappenas’ GDP growth assumption for Indonesia Emas 2045,” Radit said.
This was clarified by Retno Gumilang Dewi, ITB’s modeling team, who assisted DEN in the modeling, that the figures currently circulating are adjusted figures.
“The model we produced can be said to be an ideal model. The modeling was then brought for FGD (focused group discussion) and received various inputs, so it was adjusted,” said Retno Gumilang.
Fabby Tumiwa, Executive Director of IESR on the same occasion said that in preparing a country’s energy planning, it is important to ensure the choice of technology that is most relevant and tested with the latest technological developments.
“This step is important and crucial to avoid being locked-in by high-carbon technologies,” Fabby said.
Fabby added that if we are already trapped in the choice of high-carbon technology, it will require even greater investment to get out of the high-carbon technology. IESR also encourages the achievement of renewable energy targets that have been set in the RUPTL and national strategic projects as a driver of the growth of the domestic renewable energy industry.
Jakarta, March 28, 2024 – Nusa Penida, a beautiful island in the southeast of Bali, Indonesia, is undergoing extensive transformation to adopt renewable energy sources. With its stunning natural beauty, Nusa Penida will transform into an island that relies entirely on renewable energy sources. Given the challenges posed by global climate change, it is crucial to take measures to reduce carbon emissions and promote environmental sustainability.
Alvin Putra Sisdwinugraha, an Electricity System and Renewable Energy Analyst at the Institute for Essential Services Reform (IESR), has explained that Nusa Penida was selected as an island with 100% renewable energy for three primary reasons. Firstly, the island has an abundance of renewable energy potential. Secondly, its geographical location is separated from mainland Bali. And thirdly, the development of green tourism provides economic potential.
“To achieve 100% renewable energy in Nusa Penida, three stages of implementation can be carried out over the next six years (starting from 2024). The first stage, from 2024 to 2027, will focus on maximizing the potential of rooftop power plants (PLTS) to reduce diesel consumption during the day. Currently, the Nusa Penida electricity system is still reliant on diesel power plants (PLTD), which will be gradually phased out as the implementation progresses,” said Alvin in the X Space entitled Towards Nusa Penida 100% Renewable Energy.
The second phase, continued Alvin, began to place PLTD as a backup plan in 2027-2029 and explore other renewable energy sources, such as biomass. According to Alvin, Gamal plants in Nusa Penida can become a source of biomass power plants (PLTBm). The final stage will focus on optimizing other renewable energy plants like biodiesel and ocean currents and building pumped hydro energy storage in 2029-2030.
“It is possible to create an island that runs entirely on renewable energy sources, and this can be achieved through a step-by-step process. For instance, we can start with small-scale projects such as Nusa Penida Island by 2030. We also encourage the decarbonization of Bali’s electricity system to make Bali a sustainable and eco-friendly destination for all,” Alvin said.
Ida Ayu Dwi Giriantari, the Center of Excellence Community Based Renewable Energy (CORE) Chairperson at Udayana University, mentioned that Nusa Penida was previously known for seaweed farming before its development as a tourist destination. The Ministry of Marine Affairs and Fisheries (KKP) has designated a seaweed cultivation zone covering approximately 464 hectares, and this area can produce up to nine kiloliters of seaweed daily. However, out of the 20,000 hectares of land or water suitable for seaweed planting, only 70 hectares are currently in use.
“Nusa Penida, a community that was once focused on traditional industries, has shifted its economic orientation to the tourism sector. Seaweed has emerged as a promising source of bioenergy, including biogas, bioethanol, and biodiesel. To fully utilize this potential, proper management of seaweed farming is necessary. Seaweed farmers in Nusa Penida must be aware of the renewable energy potential of seaweed and take appropriate steps to manage their farms effectively,” said Ida Ayu.
In reflecting on the impacts of the COVID-19 pandemic, Ida Ayu mentioned that many destinations within the tourism industry suffered significant losses. As such, there has been a growing need for sustainable economic resilience, and one viable option is cultivating seaweed. Currently, there are several conditions where the harvested seaweed, for example, has only been processed into laundry soap, bath soap, crackers, drinks, and so on. Even more, farmers sell it directly after harvest.
“When people realize the economic value that can be gained from seaweed farming, it is more likely to be adopted. Besides seaweed, Jatropha curcas also has the potential to be used as an energy source. Based on my research, approximately 20% of the total 4,000 hectares of land on Nusa Penida Island can be utilized for growing Jatropha curcas,” said Ida Ayu.
Ida Ayu provided a pertinent example wherein a 25% allotment of land, approximately 1,000 hectares, dedicated to Jatropha cultivation can yield a biodiesel output between 540-680 liters per hectare. Jatropha is a shrub-like plant found in tropical regions. Its seeds contain oil, which can be processed into biodiesel.
Download Potential Mapping Presentation for Nusa Penida 100% Renewable Energy
The government is encouraging dedieselization in regional areas by increasing the use of power plants sourced from green energy. Most recently, the Ministry of Energy and Mineral Resources (ESDM) completed the construction and revitalization of a Mini Hydro Power Plant (PLTM) with a capacity of 1 megawatt (MW) in Oksibil District, Pegunungan Bintang Regency, Papua Mountain Province.
Read more on Koran Jakarta.
Jakarta, 22 March 2024 – The increase of the earth’s temperature is an inevitable phenomenon as a result of various natural events and human activities and lifestyles which produce greenhouse gas (GHG) emissions as the cause of the rise in the earth’s temperature.
The invention of the steam engine in 1880 made monumental changes to human life with the beginning of industrialization. The development of industry has been accompanied by increasing greenhouse gas (GHG) emissions.
The Intergovernmental Panel on Climate Change (IPCC) in 2022 recorded an increase in earth temperature of 1.1 degrees Celsius. This is a warning for humanity to immediately take steps to control temperature rise to prevent the temperature increase from reaching no more than 1.5 degrees Celsius.
Faricha Hidayati, Coordinator of the Industrial Decarbonization Project, Institute for Essential Services Reform (IESR) explained that rising earth temperatures could trigger hydrometeorological disasters, one of which will be at an increasingly high frequency.
“Apart from environmental problems, another side impact is health costs which will rise along with the increase in disease, especially those that attack vulnerable groups such as the elderly, children and poor households,” explained Faricha.
Even though it is one of the sectors causing increased GHG emissions, the industrial sector has a significant economic contribution. So strategic steps and efforts are needed to decarbonize the industrial sector.
In 2021, industrial sector emissions will be the second largest emitting sector after electricity generation. If we continue to use the business as usual scheme without any intervention, the value of emissions in the industrial sector will double by 2050.
“The industrial sector contributes to emissions of more than 300 million tons of CO2 in 2021, with the highest source of emissions from the use of fossil fuels as an energy source,” added Faricha.
Even though there are regulations that encourage industry to practice sustainable principles, their implementation is not yet mandatory. Even for industries that independently have the initiative to implement sustainable principles, there is no incentive system for them.
Faricha continued, apart from through policy advocacy to the government, consumers can contribute, one of the ways is by choosing products that are produced with sustainable principles. Consumers can also demand that producers or industries start implementing sustainable principles in their production processes.
The Institute for Essential Services Reform (IESR) noted that the iron and steel industry produces 20-30 million tons of carbon dioxide annually. This amount is equivalent to 4.9 percent of industrial emissions, reaching 430 million tons of carbon dioxide in 2022.
Read more on Kata Data.
The transition from fossil energy to low-emission energy is non-negotiable. It’s not about following global trends, but about the earth and its life in the future. However, the question arises when Indonesia can really rely on renewable energy? Because, even though we are blessed with abundant renewable energy potential, access is not easy and the price is not cheap.
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