Jakarta – The private industrial sector is doubly burdened during the energy transition from fossil energy to new and renewable energy (NRE), since while decarbonising the electricity sector, industrial business actors must also encourage decarbonisation in terms of direct use of fossil fuels, business representatives said Friday (29/7).
“Around 76% of the industrial sector still uses energy from coal and petroleum. The rest consume energy from electricity. We believe that the private sector also has the same responsibility for the Net Zero Emission (NZE) target by 2060,” said Chairman of the Net Zero Hub of Kadin Indonesia M Yusrizki in a written statement at the CEO Breakfast Forum with the theme ‘Restoring and Increasing Greening: Energy Transition Without Limit for Indonesia’s Manufacturing Sector’.
Yusrizki explained that the industrial sector cannot wait for the decarbonisation steps that are being carried out by the government and PT Perusahaan Listrik Negara (PLN) for the electricity sector. This is due to the high use of fossil energy in the industrial sector. Furthermore, he assessed that the presence of supporting regulations is expected to be facilitated by the government.
As an initiative step, currently a number of private companies are said to have started taking decarbonisation initiatives, including the use of biomass for operational activities. In addition, he said that he hopes the private sector will also be given the opportunity to encourage the development and utilization of NRE.
“At least the private sector has the option to buy renewable energy. Is it power wheeling, can we direct investment, do we have a green tariff,” Yusrizki said.
In order to achieve this target, he acknowledged that regulations are needed to facilitate the wishes of private business actors. He considered that currently this desire has not been accommodated in the existing regulations. (Hartatik)