Indonesia's Renewable...

IETD 2021: Indonesia's Renewable Energy Must Be Increased 7 to 8 Times


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19 September 2021

Jakarta, 20 September 2021 - Indonesia is among the top 20 countries that are severely affected by the effects of climate change in the form of extreme weather. Furthermore, in the middle of world trade trends that are increasingly prioritizing green aspects in their manufacturing products, Indonesian industry must compete in developing renewable energy technologies and various policies to reduce carbon emissions by 2050.

This was stated by the Executive Director of the Institute for Essential Services Reform (IESR) , Fabby Tumiwa, in the opening of the 4th Indonesia Energy Transition Dialogue (IETD), Monday (09/20/2021) virtually through website.

According to Fabby, decarbonization in Indonesia must start as soon as possible. By relying on the electricity sector, so in the future more than 2/3 of power plants in Indonesia must be supplied from renewable energy.

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

Chairman of the Advisory Board of the Indonesia Clean Energy Forum (ICEF) Prof. Dr. Kuntoro Mangkusubroto said that Indonesia need clear and precise socio-political support to oversee the energy transition process. According to him, the Indonesian government still has important work, 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.

"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.

In response to this, the Minister of National Development Planning/Head of Bappenas, Suharso Monoarfa, said that the energy transition process needs to be carried out to reduce carbon emissions. According to him, several steps that will 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 with energy efficiency program by considering the alignment between resource management, financial policy variables, and the role of all sectors," he continued.

Suharso is also optimistic that Indonesia can achieve net zero emissions by 2060 or sooner. Currently, for the first time National Medium Term Development Plan (RPJMN) has implemented green aspects by including climate change management, through low-carbon development and climate resilience, which are national priority agendas.

Similarly, still projecting carbon-based neutrality in 2060, Minister of Energy and Mineral Resources Arifin Tasrif, stated that according to the scenario that has been prepared by the government that the electricity demand in 2060 will be projected to be 1885 Twh. To meet the electricity demand and achieve net zero emission , there are several a map of policy steps including phasing out coal-fired power plants, massive new renewable energy development, development ofinterconnection super grid Indonesia'sand 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 for 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.