Indonesia's energy reality and future

Indonesia has quite a large potential for New and Renewable Energy (EBT) including
450 MW of mini / micro hydro, 50 GW of Biomass, 4.80 kWh / m2 / day of solar energy, 3-6 m /
s of wind energy and 3 GW of nuclear energy. The latest EBT potential data was conveyed by
the Director of New and Renewable Energy and Energy Conservation in a Focus Group
Discussion on the Supply-Demand of New and Renewable Energy which was recently held by
Pusdatin ESDM.
Currently, the development of EBT refers to the Presidential Decree No. 5 of 2006
concerning National Energy Policy. The Presidential Decree states that the contribution of EBT
in the national primary energy mix in 2025 is 17% with a composition of 5% Biofuels, 5%
Geothermal, 5% Biomass, Nuclear, Water, Solar, and Wind, and 2% liquefied coal. %. For this
reason, the steps that will be taken by the Government are to increase the installed capacity of
Micro Hydro Power Plants to 2.846 MW in 2025, Biomass installed capacity of 180 MW in
2020, wind installed capacity (PLT Bayu) of 0.97 GW in 2025, solar 0.87 GW in 2024, and 4.2
GW nuclear in 2024. The total investment absorbed by NRE development until 2025 is projected
to be 13.197 million USD.
Indonesia does make many policies and narratives related to renewable energy, but
ironically, the absence of Indonesia in the list of speakers at the fifth anniversary of the Paris
Agreement, the Climate Ambition Summit, which will be held on 12 December 2020, should be
a stern warning to the government that has not yet targeted ambitious to achieve the 1.5 degree
Celsius target. The government has even decided not to raise the target of Nationally Determined
Contributions (NDCs), where this could have an impact on global temperature increases of up to
4 degrees Celsius, if other countries in the world have the same level of commitment as
Indonesia.
Now the government is selling out artificial solutions, such as coal co-firing and the
biodiesel program. Both of these programs have great potential to increase palm oil production,
which has the potential to increase land area by deforesting forests and destroying peatlands. The
LPEM study at the University of Indonesia, for the development of B50, requires the addition of
9,291,549 hectares of oil palm land, while the productive land area in 2019 is 13.35 million
hectares. [6] This means that the need for new land is very significant, given the low
commitment to intensification. In addition, the need for subsidies is also large, so the plan to
save the state budget from reducing diesel imports is very difficult to realize.
In addition, the Indonesian government has just passed the mineral and coal law, which
substantially does not direct Indonesia to use renewable energy. mining is the sector that benefits
the most from this law.
Many countries are racing to realize a green economy in the midst of this pandemic. The
latest is for example New Zealand which declared a climate emergency. Indonesia should be able
to start by strengthening the National Economic Recovery program, by seeing people and nature
as two strategic factors for long-term development. With the low commitment of the Indonesian
government as it is today, the impact of the climate crisis will threaten the economy and people's
livelihoods. Climate resilience is not a burden, but a strength of the economy. This should be the
basis for future policy changes by ending the economic development model that sacrifices the
environment and humans but still uses renewable energy.
Bibliography
5 Tahun Perjanjian Paris, Indonesia Memperburuk Krisis Iklim, (2020, 12 December), in access
at 11 February 2021 https://www.greenpeace.org/indonesia/siaran-pers/44452/5-tahun-
perjanjian-paris-indonesia-memperburuk-krisis-iklim/

Siasat Energi Indonesia 2021, (2021, 20 January) In access at 10 February 2021

https://koran.tempo.co/read/opini/461666/opini-siasat-energi-indonesia-2021-oleh-amrullah-
hakim

Gencarkan Energi Terbarukan, Investasi 2021 Naik ke Rp 29 T, (2021, 14 January), in access at

11 February 2021 https://www.cnbcindonesia.com/news/20210114153551-4-215998/gencarkan-
energi-terbarukan-investasi-2021-naik-ke-rp-29-t

Potensi Energi Baru Terbarukan (EBT) Indonesia, (2008, 24 August), accessed at 18 February
2021
https://www.esdm.go.id/id/media-center/arsip-berita/potensi-energi-baru-terbarukan-ebt-
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%20nuklir%203%20GW.&text=Saat%20ini%20pengembangan%20EBT
%20mengacu,2006%20tentang%20Kebijakan%20Energi%20Nasional.