IESR: The government needs to strengthen regulatory support and investment to achieve a net-zero emissions target

Jakarta – Despite the government’s energy transition policies and commitments, the Institute for Essential Services Reform (IESR) expressed concern over the slow development trend of renewable energy. As of the fourth quarter of 2023, only 0.97 GW of the 3.4 GW target was achieved, and if this trend continues, reaching peak emissions by 2035 will become increasingly difficult.

Indonesia has designed an aggressive strategy to peak greenhouse gas emissions by 2035 and move towards net zero emissions (NZE) by 2060 or earlier. The move is all the more critical given that Indonesia’s energy sector, which accounts for about 90.4 per cent of emissions with fossil energy dominance, must transition to renewable energy.

In a flagship report titled “Indonesia Energy Transition Outlook (IETO) 2024,” IESR highlights the need for regulatory and investment support to accelerate the energy transition. IESR Executive Director Fabby Tumiwa said that the main focus is evaluating the energy transition process in the electricity, industry, transportation, and building sectors.

“IESR, through IETO 2024, tries to measure the energy transition process in various sectors. There are four enabling conditions: the policy and regulatory framework, funding and investment support, application of technology, social impact and community support,” Tumiwa said in a media briefing launching IETO 2024.

IESR Executive Director Fabby Tumiwa gives a speech during the Indonesia Energy Transition Outlook 2024 media briefing webinar (12/12). (Hartatik)

The report also highlighted the need for Indonesia to reduce 4.29 GW of coal and diesel power plants and increase renewable energy development by 30.5 GW until 2030 to achieve the Just Energy Transition Partnership (JETP) agreement target of 250 MtCO2e/y by 2030.

On that occasion, IESR renewable energy analyst Pintoko Aji stated that the high penetration of variable renewable energy, such as solar power plants and wind farms, will make the concept of baseload plants or plants that operate continuously with high capacity irrelevant.

“With the need to increase the penetration of variable renewable energy (VRE), Indonesia’s electricity system needs a more flexible and responsive system,” he said.

IESR encourages the government to show stronger political commitment and implement a sector-wide decarbonisation strategy. With the election of a new president in 2024, it is hoped that the momentum of the energy transition can be accelerated. (Hartatik)

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