Jakarta – Researchers from the Institute for Essential Services Reform (IESR) at the launch of the Indonesia Energy Transition Outlook (IETO) 2025, Thursday, December 6, 2024 said that based on IESR’s modeling, without strategic and ambitious steps to reduce emissions in all sectors, Indonesia risks facing global warming of more than 3 degrees Celsius.
Anindita Hapsari, IESR’s Agriculture, Forestry, Land Use and Climate Change Analyst, urged the government to design a planned and phased approach involving all parties, including local governments, to support Indonesia’s energy transition. Anindita emphasised short-term strategies to address immediate issues and long-term strategies to build the foundation of a sustainable, low-carbon energy system aligned with the Paris Agreement.
In the short term, the government must first enforce compliance in ensuring the implementation of existing policies, such as tightening fuel emission standards, and implementing green buildings.
Second, provide incentives to accelerate the adoption of low-emission technologies, such as electrifying road vehicles and implementing carbon trading mechanisms. Third, support sectors such as mineral processing to be more environmentally friendly and prioritise and accelerate renewable energy procurement.
In the long term, the government needs to build renewable energy infrastructure, such as, developing green hydrogen and ammonia production capacity as future fuels and strengthening electricity grid infrastructure to support renewable energy integration.
Market mechanisms that promote energy efficiency and sustainability should also be developed. Then, the flexibility of the electricity system with additional services and innovations such as ESCOs (Energy Service Companies) and the role of regions in implementing energy transition policies, such as local resource management and regional energy planning, must be strengthened. (Hartatik)
