Jakarta—Indonesia’s key focus is the transition to a green economy, and the next five years are critical to ensuring this transformation is effective. This effort is considered essential to supporting energy security, improving self-sufficiency, and driving sustainable economic growth capable of lifting Indonesia out of the middle-income trap.
“The next five years are an important momentum for Indonesia to ensure a just and sustainable energy transition, in line with the target of reducing greenhouse gas emissions and strengthening energy self-sufficiency,” Executive Director of the Institute for Essential Services Reform (IESR), Fabby Tumiwa, told the media in Jakarta, Thursday, October 31.
This commitment to a green economy is projected to create a stronger foundation in the face of global climate challenges and economic competition. IESR and Indonesia Clean Energy Forum (ICEF) will promote the urgency of green economy transformation at the annual Indonesia Energy Transition Dialogue (IETD) 2024, which will take place from November 4 to 6, 2024, in Jakarta. With the theme “Realising an Equitable and Orderly Energy Transition,” the event will discuss the progress, challenges, and emerging opportunities in Indonesia’s energy transition process.
The new government, under President Prabowo and Vice President Gibran, is expected to make the energy transition an integrated national mission. At the UN Climate Change Conference (COP 28), Indonesia agreed to triple its renewable energy capacity by 2030.
“Indonesia’s commitment to the renewable energy mix must align with national planning, such as the National Energy Policy and the National Long-Term Development Plan,” Fabby said.
According to Fabby, reducing fossil energy use and increasing the renewable energy mix will be key indicators in achieving energy self-sufficiency and more stable economic growth. IESR will submit five main recommendations formulated in an official letter to relevant ministries as concrete steps to accelerate energy transformation.
Optimisation of renewable energy in the regions
IESR’s Energy System Transformation Program Manager, Deon Arinaldo, emphasised that Indonesia has enormous renewable energy potential spread across various regions. These include solar, wind, and battery-based energy. According to him, the utilisation of renewable energy at the regional level can significantly impact energy security and equitable energy access for the community.
“Renewable energy development based on local potential can help increase sustainable energy access and create energy security in each region, better than centralized and high-cost energy projects,” Deon added.
Indonesia is also expected to strategically mobilise global cooperation, especially with developing countries, through South-South initiatives. Arief Rosadi, IESR’s Climate and Energy Diplomacy Program Manager, said President Prabowo can strengthen Indonesia’s position in international forums such as the UNFCCC, G20, ASEAN, and the Belt and Road Initiative. This is expected to help accelerate the energy transition in developing countries while providing access to the technology and financing needed.
“This international cooperation benefits Indonesia and developing countries that want to switch to clean energy. The transfer of technology and knowledge through this cooperation will help Indonesia develop its renewable energy industry and increase investment in the clean energy sector,” Arief explained.
IESR, in its policy report, provides five main recommendations to accelerate the energy transition process in Indonesia. First, strengthen a clear political commitment to the green economy. Second, energy self-sufficiency can be achieved through renewable energy development. Third, utilising the momentum of the energy transition to boost economic growth. Fourth, encourage the active role of various stakeholders in the energy transition. Fifth, collaboration in South-South cooperation should be strengthened to support energy transition efforts in developing countries.
The IETD 2024 event is a discussion forum for stakeholders from various sectors to formulate clear policy directions and strategic steps towards a green economy. Hopefully, these concrete steps can ensure that Indonesia’s economic transformation is equitable and sustainable so that Indonesia is ready to face the challenges of climate change and become an example for other countries in the energy transition process. (Hartatik)