IESR: Indonesia's Energy Transition Implementation Stuck in Consolidation Phase

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December 6, 2024 | 10:46 pm

TEMPO.CO, Jakarta - The Executive Director of the Institute for Essential Services Reform (IESR), Fabby Tumiwa, said that the implementation of the energy transition promoted by the government has been stagnating for years. According to him, the energy transition in Indonesia is still at a crossroads between accommodating the economic and political interests of the fossil fuel industry or rapidly transitioning to renewable energy and building a low-carbon economy.

In addition, Fabby said that the reduction of the renewable energy target to 17 percent by 2025, as stated by the National Energy Council, shows that the government is giving up on meeting its target. "The reason given by the government is that the target is unrealistic, so why set an unrealistic target?" he said during the Indonesia Energy Transition Outlook (IETO) 2025 event held online on Thursday, December 5, 2024.

Fabby said that when setting specific targets, the government should formulate strategies and plans to achieve these targets. However, what the government has been doing is the opposite. He assessed that what has happened so far indicates that the government is not serious about achieving the renewable energy targets. Fabby viewed that the government has been reluctant to determine the direction and pace of the energy transition.

He pointed out that the persistent problem from year to year on the road to energy transition is the resistance in policy coordination among institutions that are not in sync.

Nevertheless, Fabby expressed optimism that the new government under President Prabowo Subianto will address renewable energy issues. He highlighted that during his international visits at the G20 Summit in Brazil, Prabowo conveyed the goal of phasing out fossil-based energy within 15 years. In addition, he said that at the APEC Summit, Prabowo also announced the target of 100% renewable energy in 10 years.

"I interpret (Prabowo's demand) as something serious and not just empty promises," he said. "It may not have been communicated to his assistants in the cabinet yet, but this will be a challenge, and perhaps the president also hopes that his ministers and staff can find the best way to achieve these goals," Fabby continued.

He emphasized that the energy transition is a mission, not a question of whether it is realistic or not. However, the energy transition has its challenges.

Earlier, the National Energy Council (DEN) revised the renewable energy mix targets as part of the Energy Policy Renewal. The DEN proposed a revision of Government Regulation No. 79 of 2014 on the National Energy Policy. In the energy transition roadmap in the National Energy Policy revision, the target for the primary renewable energy mix is to reach 19-21 percent by 2030, then 38-41 percent by 2040, and 70-72 percent by 2060.

However, DEN revealed that the energy policy revision has not been approved by President Joko Widodo or Jokowi. The changes to the targets are intended to ensure that the targets remain within reach, albeit at the lower end of the number of scenarios.

Amelia Rahima Sari contributed to this article.

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