Jakarta – The Institute for Essential Services Reform (IESR) believes that in the first 100 days of the Prabowo-Gibran administration, the energy transition, one of the administration’s main promises, has not been accompanied by significant concrete steps. The administration of President Prabowo Subianto and Vice President Gibran Rakabuming Raka will reach 100 days of service on January 28, 2025.
“The government has shown commitment through various international forums, including the target of net-zero emissions before 2050 and a renewable energy mix of 23 per cent by the end of 2025. However, the plans and implementation to achieve these targets are not yet clear,” said IESR Executive Director Fabby Tumiwa in an official statement on Wednesday, January 22.
Fabby highlighted that the government is still focused on long-term targets without being accompanied by tactical steps supporting the energy transition’s acceleration. One of the issues raised is the slow development of New and Renewable Energy (NRE)-based power plants.
In his speech at the APEC CEO Summit forum and the G20 Summit in Brazil, President Prabowo emphasised that Indonesia will stop operating coal-fired power plants in the next 15 years and switch completely to renewable energy in 10 years. However, no specific regulations have been issued to support this ambition.
“We noted that in 100 days, NRE capacity development has not accelerated significantly. The target of a 23 per cent renewable energy mix in 2025 needs to be supported by the construction of 9 GW of NRE generating capacity this year. Without concrete steps, the target will be difficult to achieve,” said Fabby.
IESR also highlights that the government’s energy policy still maintains subsidies for fossil energy. Data from the Ministry of Finance shows that the energy subsidy budget will reach Rp386.9 trillion by 2024, most of which is allocated to fossil fuels.
“Fossil energy subsidies hinder the development of renewable energy. The government needs to start gradually reducing these subsidies and divert them to support clean energy development,” he added.
Criticism of RUKN 2024
The 2024 National Electricity General Plan (RUKN) published last November still contains a net zero target in 2060, different from President Prabowo’s statement targeting 2050. In addition, the plan to build PLTU until 2035 is also considered contrary to the commitment to stop using coal.
“RUKN 2024 does not reflect the president’s ambition. We urge that this plan be revised to align policies with more ambitious energy transition targets,” Fabby explained.
IESR recommends the government to take the following steps immediately:
1. Acceleration of EBT Infrastructure Development: Build 9 GW of renewable energy generation capacity by 2025 to achieve the energy mix target.
2. Energy Subsidy Reform: Reduce fossil energy subsidies and shift the budget to finance the energy transition.
3. Stop Captive PLTU: Stop the construction of captive PLTU, which only prolongs its dependence on coal.
4. Alternative Financing for the Energy Transition: Implement a 2.5-5 per cent levy of coal export value to fund renewable energy development.
IESR estimates that the levy scheme could generate USD 1.25-2.5 billion in annual funding, which could be allocated to investing in renewable energy plants.
“If the government is serious about the energy transition, they must have the courage to go against the interests of the status quo and accelerate the pace to realise sustainability-based energy security,” Fabby said.
Potential risk of biodiesel
Fabby also highlighted that biodiesel development has the potential to trigger deforestation due to increased demand for palm oil. IESR encourages the diversification of biodiesel raw materials and the implementation of sustainability standards such as the Indonesian Sustainable Palm Oil (ISPO).
“Biodiesel production must pay attention to sustainability, including protecting ecosystems and ensuring the rights of local communities,” he said.
In the next 100 days, IESR hopes that the Prabowo-Gibran administration can focus more on implementing concrete policies for energy transition.
“The courage to fight fossil energy interests and promote clean energy will determine Indonesia’s success in achieving energy independence and net zero emissions,” Fabby said. (Hartatik)
