Jakarta—The House of Representatives Commission XII approved the much-awaited draft government regulation (RPP) on the National Energy Policy (KEN) during a hearing with the Minister of Energy and Mineral Resources (MEMR) early in February.
The new regulation will set the direction of the country’s energy policy in the medium to long term. The regulation will replace the previous one, PP Number 79, issued in 2014.
The draft regulation will become a government regulation once the President signs it.
The regulation on the National Energy Policy was supposed to be issued in June last year. However, the government postponed it so that the new energy policy would align with the new government’s programs and plans under President Prabowo Subianto.
The government was forced to replace the previous ruling after several targets were missed due to unexpected circumstances, including the COVID-19 pandemic, lower-than-expected economic growth, and other reasons.
One of the targets that have been missed is the share of renewable energy target in the national energy mix, which was set at 23% in 2025. However, the target is missed. The share of renewable energy in the national energy mix stood at only 13.9% at the end of 2024, far below the government target of 23% in 2025.
The draft regulation calls for achieving a 23% share of renewable energy in the nation’s energy mix by 2030.
The share of renewable energy in the mix will then gradually increase to 60%- 72% in 2060, in line with the government’s target of achieving a net zero emission of 60% in the same year.
Thus, in the long run, renewable energy will become the primary source of primary energy, replacing fossil fuels, particularly coal.
At the same time, the portion of coal in the energy mix will gradually decrease from 39.48% in the first half of 2024 to 28.9%- 31% in 2040, 10.1%- 20.9% in 2050, and further decline to 7.8%- 11.8% in 2060.
Based on the draft regulation, the government sets up nine main renewable energy sources: hydropower, solar, wind, biomass, geothermal, biogas, vegetable-based fuel, nuclear, and other renewable energy sources. (Roffie Kurniawan)
