Indonesian Government’s Capacity for Just Energy Transition Planning

Krisis iklim global telah mendorong negara-negara di seluruh dunia untuk beralih dari bahan bakar fosil ke energi bersih dan terbarukan. Komitmen global telah mulai menempatkan semua negara pada jalur untuk menghentikan penggunaan bahan bakar fosil dan mencapai emisi nol bersih (NZE) pada tahun 2050, seperti yang diserukan dalam Perjanjian Paris. Untuk mencapai NZE, diperlukan upaya kolektif global untuk mengurangi emisi gas rumah kaca sebesar 45% pada tahun 2030. Penghapusan dan pengurangan penggunaan bahan bakar fosil menjadi penting untuk mengurangi pemanasan global yang semakin parah.

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Industry Decarbonization Roadmaps for Indonesia

Opportunities and Challenges to Net-zero Emissions

Pertumbuhan industri utama menimbulkan tantangan bagi pencapaian skenario Near Zero 2060. Untuk mengatasi hal ini, portofolio teknologi yang komprehensif diusulkan untuk dekarbonisasi industri. Strategi khusus untuk industri seperti besi dan baja, semen, amonia, pulp dan kertas, serta tekstil melibatkan transisi ke proses yang lebih bersih, meningkatkan efisiensi energi, dan menggunakan sumber terbarukan. Selain itu, sektor tenaga listrik yang terdekarbonisasi sangat penting untuk mencapai emisi CO2 yang mendekati nol di dunia industri.

Untuk memastikan transisi yang lancar, pendekatan kebijakan multifaset sangat penting, yang mencakup target emisi sektoral, kerangka kerja yang mendorong peralihan bahan bakar dan efisiensi energi, kondisi pasar untuk efisiensi material, dan investasi dalam penelitian dan persiapan tenaga kerja.

Laporan ini menjabarkan jalur komprehensif untuk mencapai industri karbon mendekati nol, yang mencakup teknologi yang sesuai dan opsi kebijakan untuk tahun 2060 dan percepatan tahun 2050. Laporan ini merupakan studi bersama antara Institute for Essential Services Reform dan Lawrence National Berkeley Laboratory.

 

Lihat juga halaman Lawrence National Berkeley Laboratory.

Rekomendasi Sektoral untuk Peningkatan Ambisi Iklim Indonesia dalam Rangka Penyusunan Dokumen Second Nationally Determined Contributions (SNDC)

COP-28 di Uni Emirat Arab tahun ini akan menjadi ajang Global Stocktake pertama yang akan menjadi salah satu proses inventarisasi aksi iklim negara-negara di seluruh dunia untuk melihat apakah aksi tersebut sudah sejalan atau justru semakin menjauh dari target Persetujuan Paris (UNFCCC, n.d). Hasil dari The First Technical Dialogue of Global Stocktake, yang menunjukkan gap of action, yang akan menjadi landasan negosiasi dan peningkatan ambisi penurunan emisi global sesuai Persetujuan Paris. Sehubungan dengan hal tersebut, Pemerintah Indonesia juga akan melakukan pembaharuan dokumen NDC menjadi Second NDC (SNDC) pada tahun 2024.

Melihat perkembangan implementasi dan ambisi iklim Indonesia dalam NDC, kami dari organisasi masyarakat sipil melihat perlunya memberikan masukan berbasis riset dan data atas penyusuan aksi mitigation dalam SNDC yang sejalan dengan Persetujuan Paris. Keterlibatan aktor non-pemerintah juga merupakan salah satu perwujudan transparansi dan akuntabilitas dalam pembuatan kebijakan yang merupakan salah satu prinsip penyusunan NDC sesuai Article 4 Line 13 Perjanjian Paris.

Oleh karena itu, Institute of Essential Services Reform (IESR) dan sejumlah organisasi masyarakat sipil Lainnya telah menyusun rekomendasi awal pada setiap sektor untuk NDC Indonesia. Rekomendasi sektoral ini disusun atas refleksi dari dokumen NDC sebelumnya, dan juga disesuaikan dengan keahlian/kompetensi masing-masing organisasi.

Besar harapan kami rekomendasi dari organisasi masyarakat sipil ini dapat diintegrasikan pada siklus pengembangan NDC berikutnya. Kami juga sangat berkenan jika Bapak/Ibu ingin berdiskusi lebih lanjut mengenai rekomendasi yang telah kami sampaikan. Jika Bapak/Ibu memiliki pertanyaan terkait rekomendasi ini, mohon dapat menghubung Sdr. Wira A. Swadana melalui e-mail: wira@iesr.or.id

Policy Assessment: Renewable Energy Development in Indonesia’s Power Sector

The energy sector is the second largest greenhouse gases (GHGs) emissions contributor, accounting for 35% of total emissions, as stated in Indonesia’s Third Biennial Update Report (BUR). The power sector accounts for 43% of the total energy sector’s CO2 emission. Indonesia’s electricity generation mainly relies on fossil fuels, accounting for 81% of the total, with coal alone constituting 62% in 2021. Despite the inclusion of decarbonisation in the LTS-LCCR 2050, the ambition remains lacking, and the implementation planning must be improved.

The Government of Indonesia (GoI) aims to use the power sector, particularly through the National Electricity Plan (Rencana Umum Ketenagalistrikan Nasional/RUKN), to drive its emission reduction to meet its NDC targets. In the electricity sector, the NDC targets an additional 20 GW of installed RE, which will contribute 358 Mt CO2-eq unconditionally and 446 Mt CO2-eq conditionally by 2030. Given the importance of reducing carbon emissions in this sector, RUKN is critical in Indonesia’s decarbonisation efforts. The Indonesian government has also announced that the RUKN will be aligned with its Nationally Determined Contributions (NDCs) at different intervals due to their different issuance years.

Indonesia’s current new and renewable energy (NRE) target is 23% by 2025, with 10.6 GW of additional renewable power generation will be added by 2025 according to the National Electricity Supply Business Plan (Rencana Usaha Penyediaan Tenaga Listrik/RUPTL) 2021-2030. However, by 2022, the installed capacity of renewables was only at 12.3%. This situation is in line with the limited investments made. Indonesia targeted that investment in renewable will reach around USD 4 billion in 2022, yet the realised investment only accounts for USD 1.6 billion. This number is much smaller compared to the Ministry of Energy and Mineral Resource (MEMR) projection that USD 28.5 billion of investment is needed annually to reach net zero emission by 2060. In addition, the Ministry has also identified a number of obstacles to renewable energy investment, including but not limited to complicated bureaucracies, limited technical capacities, lack of planning, and limited access to financing for Independent Power Producers (IPP).

The Just Energy Transition Partnership (JETP), which deals with a total financial commitment of USD 21.5 billion, is expected to reduce the gap in renewable energy financing in Indonesia. As of November 2022, the JETP investment plan also set the target of 44% (previously 34%) renewable energy shares by 2030 and net zero in power sector by 2050. Indonesia needs to align the JETP target with future electricity plans. Although the JETP target is more ambitious than the RUKN, it is still not compatible with the Paris Agreement pathway. This shows that the synchronisation of Indonesia’s renewable energy targets is not yet available to guide a more ambitious decarbonisation path for the country.

To provide a more comprehensive review of the implementation of key policies and regulations related to RE development in Indonesia, this report assesses the current National Electricity Plan (RUKN 2019-2038). The assessment will also review its derivative, such as the RUPTL 2021-2030 with PT PLN (Persero) as the main implementing agency, and other applicable instruments in the power sector.

Briefing Paper : Improving the Financing Landscape for Renewable Energy Development in APAC – A case study of Indonesia

Indonesia is a pivotal region in global efforts to curb climate change. In addition to being considered significantly more vulnerable to the impacts of climate change than other regions worldwide, it is also expected to play a key role in keeping global warming within 1.5°C as set under the Paris Agreement.
With the region’s share of global emissions increasing from 35% in 2010 to 58% in 20202, several countries, including Indonesia, have recently renewed their Nationally Determined Contributions (NDCs) to reflect more ambitious climate targets. Meeting the 1.5°C target, however, will require a vast amount
of climate finance as well as more strategic investment planning. Looking at commitments made by the 38 developing member countries of the Asian Development Bank (ADB), up to $16,999.3 billion will have to be invested between now and 2030 to meet the region’s NDC targets. Recognizing the urgency for robust investment growth and more strategic allocation of climate finance, this article looks at the latest developments and challenges facing Indonesia’s clean energy transition in comparison with other APAC countries, as well as insights on how we can leverage more climate finance opportunities to accelerate coal phase-out and the growth of renewable energy investment.

 

Reviewer IESR:

Briefing Paper : Indonesia Landscape of Climate Finance – Financing Indonesia Energy Transition

Indonesia’s National Energy Policy aims to increase renewable energy capacity to 23 percent of the energy mix by 2025. Coal (30%) and oil and gas (47%) would make up the balance. However, progress has been slow, as renewables accounted for only 14% of the energy mix in 2020. Although Indonesia has announced a moratorium on new coal power plant permits by 2025; a large number of coal-fired power plants are already in the pipeline (IEA 2021). The government’s 2021–2030 national electricity supply plan (RUPTL 2021–2030) has set a coal capacity target of 44.7 GW by 2030, representing a 40 percent increase from 2020 levels (Ministry of Energy and Mineral Resources (MEMR) 2020 and PT Perusahaan Listrik Negara (PT PLN) 2021). Fossil fuel subsidies have remained at an annual average of USD 135 million since 2015, together with uncompetitive feed-in tariffs for renewables and locked-in coal investments. Renewable energy investments need to be mobilized at an accelerated rate, while investments in coal need to decrease to narrow the investment gap and ensure clean energy transition targets are met.

 

Reviewer IESR:

Briefing Paper : Carbon Pricing Instruments to Accelerate NZE Target Achievement in Indonesia and ASEAN

Most ASEAN member states (AMS) have announced their net zero emission target (NZE). Most of those countries’ emissions come from the energy sector, with fossil-based energy dominating. With the fact that all AMS are still in need of development to increase their level of economy as well as their people’s
welfare, decoupling their development pathways from their greenhouse gas (GHG) emissions is inevitable.

Effective mitigation actions need access to the most advanced technology, which means a huge investment. The dilemma being faced by AMS is where to spend the relatively limited financial resources: should it be spent on those advanced low-GHG emissions technologies or should it be spent on people’s needs, including the basic ones for some countries? It is therefore necessary for AMS to find another source of finance outside of domestic public money. Carbon pricing has been acknowledged and implemented by countries with more advanced economies to support their efforts to reduce GHG emissions in a more cost-effective way. This is also a way that is currently being explored by most of the AMS.

This paper will cover the role of carbon pricing instruments in accelerating the effort to achieve NZE both in Indonesia and its potential roles in ASEAN.

 

Reviewer IESR :

Indonesia Energy Transition Outlook (IETO) 2024

IESR dengan bangga mempersembahkan IETO 2024, yang mendokumentasikan kemajuan transisi energi di sektor ketenagalistrikan, industri, transportasi, dan bangunan, serta lingkungan yang mendukungnya: kebijakan, regulasi, keuangan, adaptasi teknologi bersih, dan partisipasi publik dan daerah.

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Time for a Big Rethinking? A Brief Assessment on Energy Transition and Climate Ambition after Indonesia’s ASEAN Chairmanship

Ringkasan kebijakan ini mengkaji peran Indonesia sebagai Ketua ASEAN dalam memajukan agenda transisi iklim dan energi di kawasan ini. Laporan ini mengkaji prioritas utama Indonesia terkait transisi energi di ASEAN, serta mengevaluasi adopsi inisiatif yang diusulkan. Analisis ini mencakup keterkaitan antara sektor energi dan agenda iklim, dengan mengacu pada hasil Pertemuan Menteri Energi ASEAN (AMEM) ke-41 dan Pertemuan Tingkat Menteri ASEAN ke-17 tentang Lingkungan Hidup (AMME). Laporan ini mengidentifikasi tantangan dan peluang untuk mempercepat kemajuan dalam transisi energi di kawasan ini. Dengan menekankan sifat energi yang lintas sektoral, laporan ini menggarisbawahi pentingnya ketahanan energi di bawah pilar Masyarakat Ekonomi ASEAN (MEA) dan menyoroti capaian ekonomi prioritas (PED) yang relevan terkait keberlanjutan. PED ini mencakup pengembangan standar yang diselaraskan, ekosistem kendaraan listrik, Kerangka Kerja Ekonomi Biru ASEAN, dan Kerangka Kerja Pembiayaan Transisi, yang mencerminkan upaya diplomatik Indonesia di platform multilateral untuk menyelaraskan transisi energi dengan tujuan pembangunan internasional.

 

Reviewer IESR :