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IETD 2021: Deep Decarbonization of Indonesia’s Energy System in 2050 Needs Social Political Support

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19 September 2021

Jakarta, 20 September 2021 - Indonesia's commitment that is not in line with the Paris Agreement by not increasing the mitigation target in the latest Nationally Determined Contribution (NDC) and only targeting carbon neutrality by 2060 in the Long Term Strategy for Low Carbon and Climate Resilience (LTS-LCCR) document is predicted to have a detrimental impact on the environment and the Indonesian economy in the future. Indonesia is among the top 20 countries that are severely affected by the impacts of climate change in the form of extreme weather. In addition, in the middle of world trade trends that are increasingly putting forward the green aspect of their manufactured products, Indonesian industry must compete with other countries in the world that have already developed renewable energy technologies and various policies to reduce carbon emissions by 2050 at the latest.


To avoid this, it is necessary to clear and precise socio-political support to oversee the energy transition process. This was expressed by Prof. Dr. Kuntoro Mangkusubroto, Chairman of the Advisory Board of the Indonesia Clean Energy Forum (ICEF) at the opening of the annual Indonesia Energy Transition Dialogue (IETD) 2021 organized by ICEF and the Institute for Essential Services Reform (IESR).


"For developing countries like Indonesia, the phase-out of fossil fuel energy development is very important, because otherwise it will be too late and too expensive to reduce greenhouse gas emissions and air pollution," he said.


According to him, the Indonesian government still has important work to do, including to immediately arrange an integrated national energy plan, mitigate the impact of the energy transition on the fossil fuel industry, use low-carbon technology in the transportation industry, and consider the justice principle during the transition period.


Fabby Tumiwa, Executive Director of IESR on the same occasion also emphasized that based on the study Deep Decarbonization of Indonesia's Energy System issued by IESR, Indonesia was able to achieve the target of the Paris Agreement carbon neutral by 2050. This decade is important, because Indonesia must soon reach the peak of emissions. in the energy sector by 2030 and encourage the renewable energy mix in the electricity sector to reach 45%.


"This implies that the development and investment of renewable energy must be increased 7 to 8 times from the current state, including energy efficiency on the demand side, and start discontinuing thermal power generation to accommodate large-scale renewable energy, and modernizing our grid," explained Fabby.


At the IETD 2021, Suharso Monoarfa, Minister of National Development Planning/Head of Bappenas in his remarks at the IETD 2021, said that the Indonesian government realized that the energy transition process needed to be carried out to reduce carbon emissions. He revealed that several steps to be taken to decarbonize Indonesia's energy system are to accelerate efforts to transition to renewable energy and develop new renewable energy.


"Another strategy is an energy efficiency program by considering the alignment between resource management, financial policy variables, and the role of all sectors," he continued.


Still projecting carbon neutral in 2060, Arifin Tasrif, Minister of Energy and Mineral Resources added that based on the scenario prepared by the government, the electricity demand in 2060 will be 1885 TWh. To meet electricity demand and achieve net zero emissions, several policy steps have been taken including phasing out coal power plants, massive new renewable energy development, development of Indonesia's super grid interconnection and implementation of energy conservation.


"All of these electricity needs will be fully supplied by new renewable energy power plants in 2060. Massive addition of variable capacity of renewable energy such as solar and wind will be carried out starting in 2031. Meanwhile, the utilization of geothermal and hydro energy will also be optimized in order to be able to maintain a balance system," said Arifin Tasrif.


Affirming Arifin Tasrif's statement, Dadan Kusdiana, Director General of New, Renewable Energy and Energy Conservation, Ministry of Energy and Mineral Resources stated that one of the challenges to realizing an emission-free Indonesia in 2050 is to mobilize all sectors, not only the energy sector.


“Currently, in the electricity sector, the technology already exists, while in the non-electricity sector, it still requires a more specialized study. The development of renewable energy has now begun, such as geothermal projects," he explained.


IETD 2021 which holds for five days, from 20-24 September. This event is in collaboration with Clean, Affordable and Secure Energy for Southeast Asia (CASE), a partnership project from several countries in Southeast Asia and is funded by the Federal Government of Germany. Further information can be accessed at ietd.info.