As the Government sets renewable energy research as priority, collaboration and incentives remain key challenges

Jakarta – Energy observers believe that the government’s policy of including renewable energy in the list of eight national priority research themes confirms Indonesia’s direction towards energy transition, but research collaboration with industry and supporting incentives remain a major task.

The head of the Indonesian Centre for Renewable Energy Studies (ICRES), Surya Darma, on Monday, 16 November, assessed that this affirmation is in line with Indonesia’s efforts since 2006, which already has a roadmap for renewable energy research. He said that this step should encourage the acceleration of the energy transition.

“Renewable energy technology is advancing and becoming increasingly competitive. The research road map has actually been in place since 2006, and this new priority should reaffirm Indonesia’s commitment to achieving a renewable energy mix,” said Surya Darma.

However, Surya highlighted two main challenges: the lack of collaboration between researchers and business actors, and inadequate research incentives. According to him, without strong cooperation and clear fiscal support, innovation will be difficult to implement in the field. “The challenge is the lack of collaboration between research results and business entities. In addition, research incentives have not yet received serious attention from the government,” he said.

The Ministry of Higher Education, Science and Technology (Kemdiktisaintek) has included renewable energy among its eight national priority research themes. The list also includes food, health, transportation, engineering, defence and security, maritime affairs, and social and cultural independence. This decision is expected to boost innovation and support sustainable development, including the creation of environmentally friendly jobs.

Surya Darma hopes the government will strengthen its support so that research genuinely appeals to industry. “It is necessary to provide research incentives to attract renewable energy businesses to accelerate the use of renewable energy in meeting NZE targets,” he continued.

Meanwhile, the National Research and Innovation Agency (BRIN) has affirmed its commitment to becoming a strategic partner for industry in promoting decarbonisation. Through applied research, industry assistance and the implementation of science-based climate targets, BRIN strives to ensure that research truly delivers economic and environmental benefits.

Maxensius Tri Sambodo, Senior Researcher at the Centre for Behavioural and Circular Economy Research at BRIN, cites transdisciplinary research capabilities as one of his institution’s strengths.

“This approach ensures that research results are truly relevant and impactful for the industrial sector’s decarbonisation efforts,” he said in a discussion on corporate climate ambitions.

He also highlighted the “super tax deduction” incentive as an opportunity that the industry has not optimally utilised. BRIN encourages companies to conduct low-carbon technology R&D, but the success rate of incentive applications is reportedly low.

“Companies can receive significant tax breaks if they conduct research with BRIN. It’s a win-win situation: research is carried out, emissions are reduced, and fiscal incentives can be utilised,” he explained.

However, he acknowledged that administrative constraints and financial research standards have made many companies reluctant to take advantage of the scheme. Therefore, BRIN is open to providing more intensive assistance.

“BRIN not only provides researchers and technology, but also acts as a bridge between research and business. Through research collaboration, we can accelerate innovation to reduce carbon emissions and promote a sustainable economy,” said Sambodo. (Hartatik)

Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)

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