Semarang – Central Java’s efforts to increase the share of new and renewable energy (NRE) by 2025 are facing significant pressure from budget efficiency policies. This situation has prevented a number of NRE programmes from being implemented as planned and could potentially affect the province’s energy mix targets.
Technical Policy Reviewer for Renewable Energy at the Central Java Energy and Mineral Resources Agency, Muhammad Rifqy Arya Marendra, explained on Wednesday, 26 November, that the recorded energy mix of 18.55 per cent is not the final figure for 2025, but rather the result of last year’s calculations. The calculation of the current year’s mix is still ongoing and will only be released at the end of this year after all energy consumption data—including electricity, fuel, coal, and renewable energy—has been compiled together with stakeholders such as PLN, Pertamina, the Directorate General of Mineral and Coal, and Oil and Gas.
Rifqy acknowledged that the limitations of the regional budget were a major factor in the pressure on the provincial government to increase its direct contribution to renewable energy development.
Before the efficiency policy was implemented, the Central Java Provincial Government routinely built around 30 small-capacity solar power plants each year for Islamic boarding schools, schools, and public facilities. However, that number plummeted sharply in 2025, with only four sites being funded through the regional budget, namely two solar power plants for MSMEs in Cilacap–Banyumas and two in Batang and Tegal Regencies,” he explained during a Media Dialogue event with the Central Java Provincial Government at Somerset Queen City. This dialogue, themed “The Development of Renewable Energy and Renewable Energy Targets,” was initiated by the Institute for Essential Services Reform (IESR).
Furthermore, Rifqy said that a similar situation had occurred with the biogas programme. A number of items included in the short-term plan could not be implemented this year due to a lack of budget. These programmes had to be postponed to the following year, subject to the availability of funds in the new budget period. Rifqy said that the development plan had actually been drawn up through a long list and a list of priorities, but budgetary constraints meant that many projects had to be postponed. Of the dozens of targets divided among the 12 branches of the Ministry of Energy and Mineral Resources Office, only a small portion had been realised, including four solar power plants and around 20 biogas plants.
The decline in regional budget funding capabilities has forced the provincial government to change its NRE development strategy. Instead of increasing direct development capacity, the local government is now strengthening its collaborative approach, particularly with the industrial and commercial sectors, which have been the main drivers of NRE adoption in Central Java. The provincial government is focusing on facilitation, regulatory harmonisation, and the acceleration of technical processes, such as the installation of industrial rooftop solar power plants. Cooperation has also been expanded through the Regional Energy Forum and collaboration with the Industry Agency in promoting green industry and eco-pesantren programmes.
According to Rifqy, Central Java’s current NRE mix is supported by traditional biomass—particularly firewood—B30 biodiesel, geothermal energy, and rooftop solar power. However, without more decisive financial intervention, increasing its share will be a much slower process.
Amid fiscal constraints, Central Java hopes that the energy mix can continue to increase, although Rifqy cannot yet confirm whether the target of 21.32 per cent by 2025 can be achieved. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)
