Industry with Large Value...

Luhut: Industry with Large Value Investments Must Use Renewable Energy


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19 September 2021

Jakarta, 20 September 2021 – Indonesia’s Decarbonization target is predicted to achieve the target earlier with support of policies, financial support, and the efforts of all  stakeholders with one voice. One example is the use of new renewable energy (NRE) by industry with a large investments value in the future.

Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan said that all industries with worth 100 billion dollars in the next 6 years must use New Renewable Energy (NRE). One of them, it will be implemented in Green Industrial Park area of North Kalimantan.

“If it is implemented, it could be a great potential. Moreover, by 2030, Europe has announced that they will not use fossil-produced goods. Goods produced in North Kalimantan and Morowali by converting their solar panels will make Indonesia a leading producer using renewable energy. We will produce green products," said Luhut in the 4th Indonesia Energy Transition Dialogue (IETD), Tuesday (20/09/2021).

Luhut added that to support these efforts, Indonesia's geothermal potential must be utilized. Currently, only about 10 percent of the geothermal potential has been utilized. This can still be maximized considering that Indonesia has a potential of 29,000 MegaWatt from geothermal.

According to Luhut, the potential development of geothermal technology such as springwater technology will accelerate in achieve the decarbonization target. He predicts that the technology can contribute around 100.000 MegaWatt of renewable energy.

Luhut also said that Indonesia's efforts need financial support or international funding. So that the efforts of stakeholders and the Indonesian government in achieving the decarbonization target can be more efficient.

“Technology has developed rapidly, then there is financial support from international. If these conditions are met, we can reach the target more quickly. Moreover, PLN (Indonesia’s State Electricity Company) and all stakeholders must also participate in improving, we can't waste time anymore" said Luhut.

On a different occasion, at the Press Conference of The 4th Indonesia Energy Transition Dialogue (IETD) 2021. The Director of Electricity, Telecommunications and Information at the Ministry of National Development Planning (Bappenas), Rachmat Mardiana, said that Bappenas had compiled several studies Net Zero Emission. The study contains considerations of social, economic, environmental and funding needs to be able to accelerate decarbonization in Indonesia.

Rachmat said that the scenario prepared had its optimum point in the 2060 study. The 2060 scenario discussed solutions so that in 2060 coal would no longer be used.

“Of course, for that we also need to look at efforts to reduce coal dependence through several efforts. For example, looking at future technological developments, the potential of hydrogen energy to meet the needs of transportation, industry, and power generation," said Rachmat in a virtual press conference of The 4th Indonesia Energy Transition Dialogue (IETD), Monday (20/09/2021).