Jakarta – Minister of Energy and Mineral Resources, Arifin Tasrif, acknowledged the current lag in meeting the set target of 23% renewable energy by 2025, attributing the shortfall to recent COVID-19 impacts and the need for more infrastructure development.
During the National Seminar on Indonesia’s Economic Outlook 2024, organised by the Coordinating Ministry for Economic Affairs, Tasrif said, “What we have achieved now is still far away (from target). … approximately 60%, and we have two years to reach the target.”
Tasrif emphasised the importance of building a robust transmission network to harness Indonesia’s abundant renewable energy sources. He also pointed out the necessity of improving policy regulations to attract investment and create demand for clean, renewable electricity.
Addressing the country’s efficiency programs, Tasrif noted the strategic move to utilise domestic natural gas resources to replace imported LPG. He remarked on Indonesia’s reliance on LPG imports, which exceed 5.5 million tons annually, highlighting the country’s potential to increase domestic gas production and exports. These resources, he explained, are pivotal in transitioning households, restaurants, and hotels from LPG to natural gas.
The minister stressed the importance of domestic energy security and the need to prepare for future cross-border carbon mechanisms. Citing recent air quality issues in Jakarta, Tasrif called for urgent policy reforms to transition from combustion fuels to electrification. This shift, he stated, poses a challenge that necessitates the development of a supportive industry to achieve economies of scale.
In conclusion, Tasrif underscored the commitment to building energy infrastructure and preparing for affordable energy access, aiming to attract investment and drive Indonesia’s energy transition forward. (nsh)