Webinar on the Decarbonization Opportunities of Small-to-Medium Enterprises (SMEs) in Indonesia and Lesson Learnt from Global Experience

Replay Event

Background

Indonesia is one of the largest economies in the world and continues to experience growth. Amongst other economic activities, the industrial sector as the backbone of the economy will also be expected to grow to support the realization of Indonesia Emas in 2045. Along with the growth, the expected growth of the industrial sector will contribute to the country’s total greenhouse gas emissions, which in 2021 have reached about 420 MtCO2 and are expected to double if no necessary measures are taken. Therefore, a commitment to transition towards more sustainable business and industrial practices is compulsory to control and limit the emissions to 31.89-43.2% less than the business-as-usual level in 2030, whilst ensuring the global competitiveness of Indonesia’s industry.

Small-to-medium enterprises (SMEs) hold a crucial position in Indonesia’s economy and constitute the largest share of manufacturing industries in the country. According to the Asian Development Bank, in 2019, SMEs accounted for about 99% of formal business and nearly 97% of employment in Indonesia. Locally, they also foster social development and equity, contributing to rural development, community empowerment, and poverty reduction. Despite its role in becoming the engine of economic growth locally and nationally, SMEs’ financial management and technical capacitances are often left behind to be developed compared to large businesses. Moreover, as with more relaxed regulations toward SME players, emissions from this sector are often overlooked and may unfold a higher number of emissions compared to the larger industry sector. Based on IESR’s latest study, it is found that the estimated energy-related emissions of SMEs reach 216 MtCO2 in 2023, on par with the emissions generated from industry sectors nationally.

This webinar is conducted to disseminate the latest study findings of IESR and LBNL that focus on exploring decarbonization opportunities suitable for SMEs in Indonesia. Key insights for SME players, policymakers, and financial institutions will be unfolded to unlock the untapped potential of energy efficiency and decarbonization in SMEs whilst improving their business competitiveness toward the current market change. Moreover, global experience on SME decarbonization will be shared to showcase the best practices that are already implemented in China, the United States, and other significant economies in the world hence providing a best reference for retrofitting for Indonesia’s SME landscape. The webinar will be held online via Zoom and streamed on IESR’s YouTube channel. It is expected that the webinar will provide valuable insights and spark innovative initiatives amongst all stakeholders in Indonesia to start the decarbonization journey for SMEs.

Objective 

There are several objectives of this workshop:

  1. Disseminate and share information on Indonesia’s Small-to-Medium Enterprises (SME) landscape on its economics, energy, and waste management,
  2. Receive feedback from the SME decarbonization recommendation from relevant key stakeholders,
  3. Discuss essential and actionable steps required to implement the decarbonization initiatives for Indonesia’s SMEs, and 
  4. Discuss challenges and opportunities, and initiate collaborations to promote decarbonization and sustainable growth in selected SMEs in Indonesia.

Presentation

Exploring Decarbonization Opportunities in Indonesia’s Small-to-Medium Enterprises (SMEs) – Abyan Hilmy Yafi

Exploring-Decarbonization-Opportunities-in-Indonesias-Small-to-Medium-Enterprises-SMEs-Abyan-Hilmy-Yafi

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Unlocking Energy Efficiency – Decarbonization Potentials in SMEs – Bo Shen

Unlocking-Energy-Efficiency-Decarbonization-Potentials-in-SMEs-Bo-Shen

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Decarbonization of Small and Medium Industries (SMIs) in Indonesia – Achmad Taufik

DECARBONIZATION-OF-SMALL-AND-MEDIUM-INDUSTRIES-SMIs-IN-INDONESIA-Achmad-Taufik

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Kompas | South Sumatra Boosts Renewable Energy Amidst Dependence on Fossils

In the midst of dependence on fossil energy, especially coal, South Sumatra  continue to encourage the development of renewable energy to contribute to efforts to achieve the national net zero emissions target by 2060. On the one hand, this is a challenge, especially in preparing for the economic transformation of dependent citizens on fossils.

Read more on Kompas.

Report Launch Nusa Penida 100% Renewable Energy

Replay Event

Background

The Bali Provincial Government set a vision for 2023,2023,Bali Net Zero Emissions by 2045 in August 2023 supported by non-governmental organization partners. This vision covers the electricity, transportation, and climate entrepreneurship development sectors. This ambitious target can be achieved by the Bali Provincial Government through an effective and collaborative strategy and a targeted and accountable roadmap. To ensure the achievement of these targets, the roadmap to Bali NZE was developed to formulate policies that support the growth of an optimal renewable energy development ecosystem and prepare a green workforce that will drive the transition.

According to Kemenko Marves, Nusa Penida Island, located in the south of Bali, holds five national titles, namely as a National Tourism Strategic Area (KSPN), one of the Outermost Islands, an Aquatic Conservation Area, a Bali Cattle Breeding Center, and a Renewable Energy Development Tourism Area. Nusa Penida’s strategic role can be encouraged as a pilot project to supply electricity powered by renewable energy to supply all electricity needs independently on one island. The existence of the senseinpilot project and the strategic predicate of Nusa Penida is expected to change the paradigm of renewable energy-based energy provision at a broader sense.

To support this initiative, IESR, in collaboration with partners, analyzed the potential of renewable energy (RE) in Nusa Penida that can be developed. Based on the results of the analysis, the potential for RE in Nusa Penida includes rooftop solar power plants worth more than 10.9 MWp, biodiesel power plants (castor plants and seaweed) of more than 2 MW, small-scale wind power plants, and Pump Hydro Energy Storage (PHES) capable of reaching more than 120 MW. Apart from renewable energy, the energy potential in Nusa Penida can also utilize wastewaste (Waste to Energy/WtE) at 700 kW.

After knowing the renewable energy potential of Nusa Penida, IESR also analyzed Nusa Penida’s electricity system in more depth to determine the optimal configuration of generation, transmission, and distribution systems to supply regional energy needs, including the capacity of potential renewable energy power plants, proposed locations, and network adjustment needs. The results of this analysis and study can be encouraged and are expected to become a blueprint for renewable energy-based island development and become part of the Bali NZE 2045 roadmap.

Objective 

This event was organized with the aim of disseminating the results of the Nusa Penida 100% study.

 

Presentation

Potential Mapping for 100% Renewable Energy Nusa Penida

Pemetaan-Potensi-untuk-Nusa-Penida-100-Energi-Terbarukan

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Spreading the Issue of Energy Transitions Through Journalistic

Palembang, 20 February 2024 – Indonesia increased its commitment of achieving the Nationally Determined Contribution (NDC) in 2030 to 31.89% (unconditional) and 43.20% (conditional). The government has also issued Presidential Regulation No. 112 of 2022 concerning the Acceleration of Renewable Energy Development for Electric Power Supply Supports the Acceleration of Domestic Energy Transitions. Various government programs hopefully will help Indonesia to achieve the Net Zero Emission (NZE) target in 2060 or faster.

The media plays an important role in guarding the issue of climate change, including energy transition policies from the government. The media also played a role in building public support while providing education about the issue of energy transition. Through informative and weighty coverage, the media can help form public opinion, motivate actions, and support steps towards a more sustainable energy system.

In this regard, the Institute for Essential Services Reform (IESR) with the Palembang Independent Journalist Alliance (AJI) and the Indonesian Environmental Journalist Community (SIEJ) South Sumatra held a network of South Sumatra journalists with the theme “Spreading the Issue of Energy Transitions Through Journalistic” on February 20, 2024, in Palembang. In the event which was attended by 39 journalists from various print and online media in South Sumatra, the speakers from the South Sumatra Energy and Mineral Resources (ESDM) Office, Sriwijaya University, and IESR took turns giving presentations.

Head of Energy Division from the South Sumatra ESDM Office Dr. Aryansyah explained that the realization of the South Sumatra renewable energy mix in 2022 had reached 23.85% or two percent higher than the 2025 target listed in RUED Province. Nevertheless, the utilization of renewable energy has only reached 989.12 MW or 4.7% of the total solar, hydro, wind, bioenergy, and geothermal energy potential of 21,032 MW.

“There are several strategies for implementing regional level energy management in South Sumatra. For example with the issuance of South Sumatra Governor Regulation Number 26 of 2021 concerning the use of battery-based electricity vehicles to support the acceleration of electric motor vehicle programs. As an implementation of the regulation, on April 25, 2022 the South Sumatra ESDM Office had an electric car unit. Another example, we are also conducting a study of potential biomass based on cow dung in Musi Banyuasin Regency, “said Aryansyah.

Lecturer in the Faculty of Economics, Sriwijaya University, Dr. Abdul Bashir explained that from an economic point of view, energy transitions will increase energy security and reduce dependence on fossil fuel imports. Energy transition can also increase economic diversification and create new sources of income that are beneficial to the surrounding community.

“In terms of policy, the government needs to set clear targets and roadmaps for energy transitions. Regulations that support the development of EBT, such as fiscal incentives and facilitate the licensing process can also be considered. The media needs to oversee this issue by providing education about the transition of energy, EBT, and its impact on the community. Conversely, the media can also voice the aspirations and concerns of the community about energy transitions, “said Abdul Bashir.

The IESR Communication Team Kurniawati Hasjanah stated that the mass media was still the main source of information for readers who wanted to explore the issue of energy transitions, followed by research, academic webinars, then influencers on social media. Interestingly, the focus of the news is still dominated by the point of view delivered by the government and business people.

“In preaching the issue of energy transitions, journalists need to understand that new energy generated from technology cannot be categorized as renewable energy, such as nuclear energy, coal gasification, and coal liquidation. Journalists also need to reveal the social and economic implications of energy transitions, including in terms of employment and affected workers. Policies related to energy transitions must be participatory since the transition concerns the lives of many people, “said Kurniawati Hasjanah.

Kata Data | Rooftop Solar Power for Households will be More Expensive due to New Rules

The government has just issued Minister of Energy and Mineral Resources Regulation Number 2 of 2024 which regulates rooftop solar power plants. Secretary General of the Ministry of Energy and Mineral Resources, Dadan Kusdiana, admitted that household consumers will find it difficult to adopt rooftop PTS after the new regulation is issued.

Read more on Kata Data.

Explore South Sumatra Energy: Promoting Renewable Energy in the Land of Sriwijaya

Palembang, February 26, 2024 – South Sumatra, also nicknamed “Bumi Sriwijaya”, is one of the provinces that achieved a regional renewable energy mix target greater than the national target. In 2022, the renewable energy mix in South Sumatra reached 23.85 percent, higher than the national energy mix target of 23 percent by 2025. To encourage greater renewable energy utilization and promote renewable energy at the regional level, the Institute for Essential Services Reform (IESR) through the Energy Transition Academy in collaboration with the Energy and Mineral Resources (ESDM) Office of South Sumatra Province held Jelajah Energi South Sumatra on February 26 – March 2, 2024.

Based on data from the Department of Energy and Mineral Resources, South Sumatra Province, the potential for renewable energy in this area is around 21,032 MW, consisting of solar energy of 17,233 MWp, hydro of 448 MW, wind of 301 MW, bioenergy of 2,132 MW and geothermal of around 918 MW. However, currently only around 4.70% of this potential has been utilized, with an installed capacity of renewable energy of around 989.12 MW.

Secretary of the Energy and Mineral Resources Agency (ESDM) of South Sumatra Province, Ahmad Gufran said, to encourage the utilization of renewable energy, his party carried out several implementations of regional energy management strategies in South Sumatra. For example, conducting a study of renewable energy potential in South Sumatra. Then, the South Sumatra Provincial Government supports the acceleration of the battery-based electric motor vehicle program for road transportation with the issuance of South Sumatra Governor Regulation Number 26 of 2021 concerning the Use of Battery-Based Electric Motor Vehicles, and encourages the private sector to participate in developing renewable energy both to meet company needs and for corporate social responsibility.

“In order to implement the energy transition, we will continue to contribute to the development of the renewable energy sector to obtain clean energy that is environmentally friendly. In the future, we hope that the utilization of clean energy can be more developed to all levels of society,” said Ahmad Gufan. 

Sub-National Coordinator, Sustainable Energy Access Program, IESR, Rizqi M Prasetyo mentioned that South Sumatra is known as an energy granary, particularly renewable energy such as solar energy. According to him, South Sumatra has the largest solar potential among other technical renewable energy potentials. However, its utilization is actually small, only 7.75 MWp in the 2012-2022 period. For this reason, IESR believes that South Sumatra can encourage the use of ground-mounted solar power and rooftop solar power by preparing supporting regulations and policies, conducting socialization about solar power in the community, and encouraging community participation to be involved in the adoption of rooftop solar power accompanied by attractive incentives. Rizqi views that the collaboration between the government, the private sector and the community is the determining factor for the success of the utilization of environmentally friendly energy.

“Based on the practice of utilizing renewable energy in South Sumatra from the private sector at the Solar Power Plant (Solar PV) in Tanjung Raja Village, Muara Enim, South Sumatra, it has been useful for irrigation of agricultural land for farmers in the village. The solar power plant has a capacity of about 16.5 Kilowatt peak (kWp), with about 525 farmers benefiting from the irrigation solar power plant and enabling harvests more than 3 times a year. The government needs to encourage initiatives from various sectors to gain benefits from the huge potential of renewable energy such as solar energy, so that more and more people can feel the impact both environmentally and economically,” said Rizqi.

Rizqi explained that IESR realizes that access to knowledge about renewable energy and its benefits tends to be limited. Meanwhile, proper understanding is needed to mobilize support for renewable energy development in the regions. Addressing the knowledge gap on renewable energy, IESR has provided an energy transition learning platform called the Energy Transition Academy that can be openly accessed by the public.

“IESR, through the academy.transisienergi.id platform, has provided various energy transition classes that are organized in an interesting and easy-to-understand manner. Not only learning about energy transition, IESR also has a special channel for everyone who wants to know about rooftop solar PV adoption by visiting solarhub.id,” Rizqi explained.

In Jelajah Energi South Sumatra, participants will be invited to see firsthand various renewable energy projects that are already running in various locations in the province, including PT Pupuk Sriwidjaja Palembang’s PLTS, Tanjung Raja Village Irrigation PLTS, and PT Green Lahat’s PLTMH. In addition, there were discussion forums and meetings with relevant stakeholders, to discuss strategic steps in accelerating the implementation of renewable energy in South Sumatra.

 

About Institute for Essential Services Reform

The Institute for Essential Service Reform (IESR) is a think tank organization that actively promotes and strives for the fulfillment of Indonesia’s energy needs, upholding the principles of justice in natural resource utilization and ecological sustainability. IESR engages in activities such as conducting analysis and research, advocating for public policies, launching campaigns on specific topics, and collaborating with diverse organizations and institutions.