76% of industries have not yet started the energy transition

Jakarta – The government’s target to achieve a renewable energy mix of 23 percent by 2025 is likely to be difficult. Based on a report by the Indonesian Chamber of Commerce (Kadin), 76% of industries have not yet started the energy transition, Kadin members said Tuesday (19/7).

Chairman of the Standing Committee on New and Renewable Energy Kadin, Muhammad Yusrizki said in a written statement, the low use of energy in the carbon industry sector will help the government achieve its net zero emission target. He said, the industry seems to forget that the final form of energy they consume is not only electricity but also fuel.

Regarding the price, he continued, it can be discussed together between the industry and the Ministry of Energy and Mineral Resources. “Industry can calculate the benefits they get from NRE. I believe there are many ways that the ESDM Ministry can do, if they see the urgency in the industrial sector,” said Yusrizki at the International Renewable Energy Agency (IRENA)-Indonesia G20 Energy Transition Investment Pre-Forum Meetings.

On that occasion, he presented data from the Ministry of Energy and Mineral Resources Handbook of Energy and Economy Statistics of Indonesia in 2021. That of the overall energy consumption of the industrial sector, only 23.1% came from electricity. A total of 33% comes from coal and 43% comes from fuel oil.

Yusrizki said that the business community proposed a Kadin Net Zero Hub. He invited all stakeholders, especially the industry itself, to review the energy transition process in Indonesian industry.

“Decarbonization of the electricity sector is important, but it does not mean that energy transition initiatives in industry are simply carried out through lower-carbon electricity. Give space for the electricity sector, especially the Ministry of Energy and Mineral Resources and PLN, to plan and implement decarbonization,” he explained.

Kadin Net Zero Hub and its strategic partners, added Yusrizki, providing space for the industry to purchase low-carbon electricity is currently more important and more strategic than discussing how and when large-scale EBT can be accommodated in the national electricity grid. (Hartatik)

Banner photo source: Indonesian Chamber of Commerce (Kadin)

Like this article? share it

More Post

Receive the latest news

Subscribe To Our Weekly Newsletter

Get notified about new articles