Indonesia’s Plan For Net Zero By 2060: 93% Emission Reduction And Renewable Energy Expansion

The Ministry of Energy and Mineral Resources (ESDM) has reaffirmed Indonesia’s ambitious goal to achieve Net Zero Emissions (NZE) by 2060, or even sooner. At the Indonesia International Sustainability Forum (ISF) 2024 in Jakarta, Eniya Listiani Dewi, Director General of New, Renewable Energy and Energy Conservation (EBTKE), emphasized that the government aims to cut emissions by 93% compared to the Business as Usual (BaU) scenario.

“We are committed to reducing emissions by 93% and optimizing renewable energy to meet national energy needs,” Eniya stated. The Ministry has developed a comprehensive roadmap towards NZE 2060, featuring strategies such as enhancing energy efficiency, electrification, and transitioning away from coal-fired power plants. The plan also includes advancing renewable energy sources like hydrogen and ammonia and integrating Carbon Capture and Storage (CCS/CCUS) technology.

The path to NZE 2060 presents two significant challenges, according to Eniya. The first is reducing emissions from existing power plants, including the gradual cessation of coal-fired units. The second challenge is increasing renewable energy capacity to replace fossil fuels and meet an estimated annual demand growth of 4%.

To address these challenges, Indonesia plans to develop 367 gigawatts (GW) of renewable power by 2060. This includes 115 GW from solar, 46 GW from hydroelectric, 41 GW from ammonia, and 37 GW from wind power. No new coal-fired power plants will be added after 2030, except those already under construction.

Eniya highlighted the importance of grid stability with the influx of renewable energy, noting that energy storage technologies, such as batteries, pump storage, and green hydrogen, are essential for managing the energy transition. Despite the high costs and technical challenges, Indonesia is well-positioned to develop a robust energy storage sector due to its abundant mineral resources and growing demand.

“Energy storage is crucial for supporting the energy transition and enhancing grid flexibility,” Eniya concluded. “Indonesia’s potential in developing a national energy storage value chain is promising and will drive future market growth.”