Strategic Partnership Program Support Indonesia’s Clean Energy Transition

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Various efforts and hard work have been carried out by the Government to accelerate the achievement of the energy mix target of 23% by 2025. Strategic partnerships with the international community continue to be forged to support the recovery of green economic activities in Indonesia. This is in line with the agreement of global leaders in 40 countries at the IEA Energy Transition Summit to call for a green economy recovery called Build Back Better on July 8, where Indonesia was represented by the Minister of Energy and Mineral Resources, Arifin Tasrif.

The British and Indonesian governments, in this case the Ministry of Energy and Mineral Resources (ESDM) last Thursday (30/7) launched the MENTARI collaboration program: Towards Indonesia’s Low Carbon Energy Transition, which will run for ten years, starting from 2020 to 2030. In his remarks, the Secretary General of the Ministry of Energy and Mineral Resources, Ego Syahrial revealed that this program was one of the important breakthroughs in the implementation of the energy transition to stimulate the Indonesian economy amid the Covid-19 pandemic. This program is believed to be able to create inclusive economic growth and reduce poverty through the development of the renewable energy sector.

“Today is a further step from the journey that began last year with the signing of the MoU and followed by the signing of the agreement on the Mentari program in 2020 and 2023 by Ambassador Jankins and myself. We welcome this collaboration considering the British Government has more experience in development of renewable energy. Britain is the most successful country in the world which has succeeded in reducing the share of fossil energy drastically since the pandemic took place, “said Ego.

Ego acknowledges that the policies of physical restrictions and isolation to overcome the spread of Covid-19 have a significant impact on reducing global consumption. It was noted that fossil fuel consumption was 17.6% lower than the same period last year. However, this is actually a blessing because CO2 emissions can drop significantly. Therefore, during a pandemic, energy production must be adjusted by accelerating the clean energy transition process.

More Ego also emphasized the Indonesian Government’s commitment to reduce emissions at the same time realizing energy access to the community will always consider the environmental aspects so that utilization can be sustained ( sustainability ).

“Indonesia’s commitment to reduce emissions by 29% by 2030 is our effort towards clean energy. To achieve this, we are currently preparing a Presidential Regulation on Feed in Tariff to boost the use of New and Renewable Energy, especially in the 3T (frontier, outermost, and left behind), “he concluded.

The government has taken concrete steps to convert fossil-based power plants that produce high emissions with renewable energy-based power plants. Based on the results of an inventory of the Ministry of Energy and Mineral Resources, there are 2,246 units of Diesel Power Plants (PLTD), 23 Steam Power Plants (PLTU) and 46 Steam Gas Power Plants (PLTGU) which are planned to undergo conversion within three years. “The converted PLTD is more than 15 years old. Meanwhile, the PLTU and PLTGU are more than 20 years old,” said Ego.

Representing the Director General of EBTKE, Director of Energy Conservation, Hariyanto on the same occasion also expressed his appreciation and warm welcome to the launched Mentari program. He revealed that the Mentari program is very appropriate if it is focused on the eastern part of Indonesia. The 100% electrification target has been announced by 2020 and one of the focuses is how to accelerate the use of renewable energy.

“We also have a 23% target by 2025 to achieve the renewable energy mix in Indonesia, so it is very appropriate to focus on Eastern Indonesia and also the use of renewable energy because the potential for renewable energy in Eastern Indonesia is very large. We are sure that the Mentari Program can assisting the Government in accelerating the target of the renewable energy mix in Indonesia and starting from Eastern Indonesia, “Hariyanto concluded.

The British Ambassador to Indonesia, Owen Jenkins, assessed that Indonesia also has great potential to become one of the largest countries in the world in developing EBT in the future. Moreover, 2.4% or 10 Giga Watts (GW) of the total capacity has only been worked on to be converted into electricity of 442 GW. Later, the UK will share experiences in preparing a regulatory framework around renewable energy which will lead to the formation of better business climate and encourage private involvement in EBT projects both on-grid and off-grid, especially in Eastern Indonesia. Apart from technical assistance, business partners (match-making), knowledge, and innovation, this program will focus on increasing electricity capacity in micro grid projects as well as building new renewable trade relations at the domestic and international levels.

“Indonesia has the opportunity to become a superpower in the renewable energy sector. Moreover, we are facing the challenges of a green economy -based global economic recovery and have entered a critical period in fighting climate change. I am pleased that Britain is partnering with Indonesia through the Mentari program to support its energy transition. “Jenkins said. (DLP)

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