Jakarta—The Indonesia Energy Transition Dialogue (IETD) 2024 forum, which concluded on Wednesday, November 6, delivered recommendations for President Prabowo Subianto and Vice President Gibran Rakabuming Raka’s administration. Accelerating the energy transition could be key to driving economic growth and keeping the earth’s temperature from rising more than 1.5 degrees Celsius.
The event organized by the Indonesia Clean Energy Forum (ICEF) and the Institute for Essential Services Reform (IESR) recommended five short-term strategic steps called “quick wins” to help Indonesia achieve its energy transition target. The first step is to set a more ambitious renewable energy target in the National Energy Policy, specifically by reinstating the renewable energy mix target of 23 per cent by 2025 and a new, more significant target by 2030.
Fabby Tumiwa, Executive Director of ICEF and IESR, said Indonesia needs a holistic approach to achieve a fair and equitable energy transition target. “Energy transition is not only about replacing fossil energy with renewable energy but also about how we can create an ecosystem that supports and maintains environmental sustainability as well as community welfare,” Fabby said in an official statement.
“The government needs to develop a clear, transparent and cost-efficient roadmap to achieve an optimal energy transition target. With this approach, the energy transition policy will be more effectively implemented,” Fabby said.
In addition, the government is asked to finalise regulations and policies related to the energy transition immediately. Some of the important regulations that need to be finalized include the National Energy Policy (KEN), the National Electricity General Plan (RUKN), and a roadmap for phasing out coal-fired power plants.
ICEF and IESR also propose that the government immediately reform energy subsidies by shifting them to direct social support for vulnerable communities.
Fabby underlined the importance of electricity sector reform, especially in supporting the Just Energy Transition Partnership (JETP) program. This reform is expected to pave the way for regulatory adjustments and allow PLN and other energy companies to be more flexible when facing clean energy challenges.
One important step expected to have a positive impact is the de-dieselisation of 5,400 units of diesel power plants (PLTD) with a total capacity of 3.5 GW. The de-dieselisation program needs to be accelerated to reduce dependence on imported diesel while lowering the cost of electricity generation in remote areas.
“This program has the potential to significantly impact increasing access to electricity in the regions while reducing emissions,” Fabby explained.
In addition to the immediate recommendations, ICEF and IESR developed four long-term recommendations that are important to build a more robust and more sustainable energy transition foundation. First, Indonesia is expected to strengthen energy diplomacy to attract investment and technology transfer through international cooperation, especially in South-South cooperation.
In addition, ICEF and IESR recommend that the government create an enabling environment that encourages the transformation of state-owned enterprises’ and private companies’ business models towards clean energy businesses. According to Fabby, this transformation will not only improve energy security but also strengthen Indonesia’s position as a leader in the energy transition in Southeast Asia.
ICEF and IESR emphasize the importance of transparency and public participation in energy transition policies. A policy-making process that involves actors from various circles such as indigenous peoples, academics, media, and industry players will help create a common understanding of the importance of energy transition. “By involving more actors, we can ensure that the energy transition policies taken also reflect the needs and expectations of the wider community,” Fabby explained. (Hartatik)
