Jakarta – The Institute for Essential Services Reform (IESR) launched the Indonesia Energy Transition Outlook (IETO) 2025 on Thursday, December 6, 2024. IESR has been publishing the IETO since 2018. In its report, IESR said that despite the government’s pledge to reduce emissions and increase the use of renewable energy, Indonesia’s energy transition has yet to bear fruit.
IESR Executive Director Fabby Tumiwa said that the energy transition in 2024 is still in the consolidation stage due to the change of national leadership with new targets and priorities and the uncertainty of the global and Indonesian economy. Based on the Transition Readiness Framework (TRF) developed by IESR in 2022, business players see policy consistency and leadership as one of the biggest obstacles to Indonesia’s energy transition agenda.
Fabby called 2025 a critical point to formulate reformative strategies and policies to accelerate a just and efficient energy transition. He also mentioned the government’s strategy that focuses on carbon storage and capture technology (CCS/CCUS), which is immature, expensive and risky compared to solar, wind energy, and battery or energy storage technologies already available in the market and are increasingly competitive. Meanwhile, many countries have committed at COP-28 in 2023 to contribute to global efforts to double down on energy efficiency and triple up by 2030. Such commitments will increase investment and funding opportunities for renewable energy and energy efficiency.
“The good news is that President Prabowo Subianto, in the G20 Brazil Summit forum, stated that Indonesia will end coal-fired power plants in 2040. This is in line with the mandate in Presidential Regulation 112/2022 to retire coal-fired power plants earlier than their economic life,” Fabby explained at the launch of IETO 2025.
“At the APEC Summit, the president stated that Indonesia would achieve 100 per cent renewable energy within 10 years. This mission is not impossible if complemented by efforts to carry out policy reforms, massive regulation and integrated electricity system planning, to ensure its energy security and contribute to 8 per cent economic growth, as envisioned by President Prabowo’s administration,” he continued. (Hartatik)
