Renewable energy sector, an investment opportunity in Central Java

The Institute for Essential Services Reform (IESR) in collaboration with the Central Java Provincial Government held a discussion entitled ‘Central Java Renewable Energy Investment Forum 2023’ at Hotel Gumaya, Semarang, Tuesday (4/7). (Photo: Hartatik)

Semarang – Central Java is one of the provinces with abundant renewable energy potential, especially solar energy. Based on a study by the Institute for Essential Services Reform (IESR), the potential of renewable energy in Central Java, including wind power plants (PLTB), micro-hydropower plants (PLTMH), biomass power plants (PLTBm), excluding geothermal power plants (PLTP) in Central Java, reaches 198 megawatts (MW).

“If 9 million houses install rooftop solar power, it can generate 100,000 megawatts, and if 35 regent and mayor offices in Central Java install rooftop solar power, it will generate around 5 megawatts of solar energy,” said IESR Executive Director Fabby Tumiwa in a discussion titled ‘Central Java Renewable Energy Investment Forum 2023’ at Hotel Gumaya, Semarang.

Furthermore, according to Tumiwa, the availability of renewable energy is currently the main factor of investment attraction. If the Central Java Provincial Government wants to increase investment competitiveness in the renewable energy sector, it needs to increase the availability of green energy supplies. Because it is a new indicator for investors.

“The huge potential of renewable energy sources will not be achieved without funding for its development,” he added.

Deputy Governor of Central Java, Taj Yasin Maimoen in his speech explained that Central Java has abundant solar energy potential and has not been fully utilised. For this reason, the use of solar power plants (PLTS) needs to be encouraged. Since 2019, the Central Java Provincial Government through the Energy and Mineral Resources (ESDM) Office has installed PLTS in every regional apparatus organisation (OPD) office, including the Central Java DPRD and several educational institutions. The use of PLTS is not only to reduce carbon emissions, but also has economic benefits such as electricity expenses that can be cut by around 30%-40%.

“Central Java has potential competitiveness, both from infrastructure support, labour and a strong commitment to investment. The renewable energy sector is a new investment opportunity in Central Java, given the need for a growing manufacturing ecosystem that requires alternative energy to fulfil its production. This potential needs to be managed together,” said Taj Yasin.

Head of the Central Java Province Investment and One Stop Integrated Service Office, Sakina Rosellasari, said that Central Java has a general plan for investment, one of which is the direction of investment policy that is environmentally sound (green investment). Based on the agency’s records, there are 690 business licences to supply electricity for their own use (IUPTLS), and the number of roof and steam IUPTLS is around 17 until June 2023.

“There are several projects that are ready to be offered in the renewable energy sector in Central Java, including the construction of the Banjaran and Logawa mini-hydro power plants in Banyumas Regency, the construction of the Wadaslintang Reservoir floating solar power plant, the development of geothermal power plants at Umbul Telomoyo Temple, and Baturaden, Banyumas Regency. The realisation of investment in Central Java is expected to increase people’s income, with the absorption of labour,” she explained. (Hartatik)


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