Professional Documents
Culture Documents
JANUARY
HVO Trial in Solar In January 2023, the Ministry of Energy and Mineral Resources
Mixtures (MEMR) of the Republic of Indonesia conducted a study on the
use of Hydrotreated Vegetable Oil (HVO) in the B35 program1.
Until now, only Fatty Acid Methyl Esters (FAME) have been used
as an additional mixture in diesel fuel. Both HVO and FAME were
originally made from crude palm oil (CPO).
The study is conducted by blending 65% diesel fuel (solar), 30%
FAME, and 5% HVO. According to claims from the Indonesian
Mining Services Association (Aspindo), based on conducted
tests, a 5% HVO blend can extend the shelf life compared to
FAME alone.
Quoting from the Digital Bulletin of the Palm Oil Plantation Fund
Management Agency (BPDPKS) for the Fourth Quarter, FAME
easily produces gums and particles that can contribute to deposits
on injectors and clogging in fuel filters. Meanwhile, HVO has low
solubility to aromatics, thus it is increasing the risk of deposits
from FAME2. Therefore, with the presence of such risks, the use
of HVO in the blend of FAME and diesel requires further testing.
1 CNBC Indonesia. ESDM Kaji Campuran Produk Baru Sawit Ini pada Solar ‘Baru’ RI.
2023.
2 Katadata. ESDM Hapus Kandungan Minyak Sayur HVO dalam Biodiesel B35. 2023
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JANUARY
Trial Use of LNG for PT Gagas Energi Indonesia, a subsidiary of PT Pertamina Gas
Truck Fuel in Indonesia Negara (PGN) Persero, conducted a trial for the use of LNG for
truck-type vehicles transporting gas fuel on 24 January 20233.
It aims to increase the utilization of natural gas in Indonesia,
especially for the transportation sector.
The trial was conducted by traveling the Jakarta - Surabaya -
Jakarta route with a travel time of 5 days. The capacity of the fuel
cylinder tested on the truck is 1,000 liters of LNG. Based on the
results of static tests with dual-fuel diesel systems and dynamic
tests on the Dharmawangsa train route from Jakarta to Surabaya
in July 2022, the use of LNG is more efficient than other fossil
fuels. The efficiency of using LNG fuel for trains reaches a range
of 35-37%4.
3 Antaranews. Subholding Gas Pertamina Uji Coba Truk dengan Bahan Bakar LNG.
Januari 2023.
4 PGN LNG. Pengelolaan Liquified Natural Gas (LNG) dari PGN sebagai Solusi Energi
Berbagai Sektor Industri. Agustus 2023.
5 PYC Data Center. Indonesia’s Energy Supply and Demand. 2023.
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FEBRUARY
Formation of the JETP The establishment of the JETP (Just Energy Transition Partnership)
Secretariat Secretariat in Indonesia represents a significant initial step in the
long journey towards sustainable energy transition. Although
the promised funding of USD 20 billion within this framework
appears substantial, in reality, it is still far from sufficient to cover
the total costs of energy transition in Indonesia. However, this
financial commitment can be seen as an exciting starting point,
paving the way for larger investments and a more conducive
investment climate in the future.
The JETP agreement that was announced at the G20 Summit
in Bali in 2022, is more than just a symbolic commitment of
Indonesia to climate change. It is a manifestation of genuine
efforts to reduce dependence on fossil fuels, especially coal,
and transition to cleaner, more environmentally friendly energy
sources. However, implementing the JETP is not easy. It is not
just Indonesia, but the entire world is still in the exploration and
learning stage regarding the best ways to implement initiatives
like the JETP. This challenge requires a tight collaboration and
coordination among various stakeholders, both nationally and
internationally 6.
The JETP Secretariat in Indonesia has a significant responsibility
to ensure the effective and efficient coordination in the
implementation of JETP projects. Its duties are not limited to the
technical aspects of energy transition, such as the development
of renewable energy and the early retirement of coal-fired
power plants, but also encompass social aspects. This includes
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MARCH
Indonesia and The The Indonesian government, through the Ministry of Energy and Mineral
US Collaborate to Resources (MEMR), has signed a memorandum of understanding with
Accelerate Clean Energy the United States government to promote the development of clean
Development energy. This collaboration takes place within the framework of the
Clean Energy Working Group, with representatives from the U.S. led
by Assistant Secretary of Commerce and Director General of the U.S.
and Foreign Commercial Service, U.S. Department of Commerce, Arun
Venkataraman. The Secretary General of the Ministry of ESDM, Rida
Mulyana, stated that this memorandum of understanding will serve
as the basis for bilateral cooperation in various fields, including CCUS,
cybersecurity, SMR technology, geothermal energy, bioethanol, and
smart city technology for Indonesia Maju.
This collaboration replaces the Power Working Group MoU signed
in 2015 and focuses on Indonesia’s efforts to achieve a 23% share of
Renewable Energy (RE) in the energy mix by 2025 and achieve Net
Zero Emission (NZE) by 2060 or earlier. The Indonesian government
invites U.S. business players to collaborate on investments and the
enhancement of energy transition technologies in Indonesia7.
In addition to the development of NRE, the government will also
prioritize domestic mineral commodities for energy transition projects,
such as energy storage facilities, electric vehicle batteries, and the
downstream mineral industry. Rida hopes that this collaboration will
attract investment and create new job opportunities. Alongside this,
the MEMR continues to strive for the development and improvement
of business processes, including streamlining permits, to support the
growth of the clean energy sector in Indonesia.
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MARCH
The Minister of Energy and Mineral Resources of the Republic Sustainable Energy
of Indonesia, Arifin Tasrif, officially launched Indonesia’s Becomes a Priority in
chairmanship in ASEAN for the energy sector on 31 March 2023 Indonesia’s ASEAN
in Jakarta. As the chair of ASEAN this year, Indonesia carries the Chairmanship
theme “ASEAN Matters: Epicentrum of Growth,” prioritizing
three pillars: Recovery and Rebuilding, Digital Economy, and
Sustainability8.
In the context of Sustainability, Indonesia’s primary focus is
strengthening sustainable energy security. This includes the
development of critical infrastructure, such as the ASEAN Power
Grid and Trans ASEAN Gas Pipeline. These initiatives are crucial
considering ASEAN’s significant potential in New and Renewable
Energy (NRE), estimated at more than 17,000 GW, providing a
strong enhancement for rapid energy transition in the region9.
The short-term targets will include the increasing proportion of
NRE in the energy mix to 23% and NRE generation capacity to
35% by 2025, in line with the ASEAN Plan of Action for Energy
Cooperation (APAEC). For medium-term targets, the Nationally
Determined Contributions (NDCs) plan by 2030 must align with
greenhouse gas emissions reduction targets in each ASEAN
country. The long-term goal is to achieve Net Zero Emissions
(NZE) by 2050.
The key to the success of these targets lies in cooperation and
collaboration among ASEAN member states. This encompasses
8 EBTKE. Kick-off Keketuaan Indonesia untuk ASEAN Sektor Energi Dimulai, Energi
Berkelanjutan Jadi Prioritas. 2023.
9 AntaraNews. Keketuaan ASEAN 2023 dan Percepatan Transisi Energi Bersih. 2023.
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MARCH
The Minister of Energy and Mineral Resources (MEMR) has enacted The Issuance of the
Ministerial Regulation No. 2 of 2023 on the Implementation of Carbon Ministerial Regulation
Capture and Storage and Carbon Capture, Utilization, and Storage on CCS/CCUS
(CCS/CCUS) in Upstream Oil and Gas Activities. This policy is part of the
government’s efforts to achieve lower emissions and enhance oil and
gas production. The development of this regulation has undergone
an extensive process involving various stakeholders, foremost since
Carbon Capture and Storage/Utilization (CCS/CCUS) is a fresh concept
for Indonesia. It is conducted by utilizing Indonesia’s geological
potential to achieve the national commitment target in overcoming
global climate change in accordance with Paris Agreement.
Comprising 11 chapters and 61 articles, the regulation focuses on
technical, business, legal, and economic aspects in implementing CCS/
CCUS in upstream oil and gas activities. Technical aspects will involve
capture, transport, injection, storage, monitoring, and verification.
Business scenarios are formulated based on cooperation contracts,
including the utilization of CO2 sources from other industries. Legal
aspects include proposals for CCS/CCUS activities within the Plan of
Development (PoD), with monitoring extending up to 10 years after
project completion. Economic aspects govern funding from external
parties, the potential monetization of carbon credits, and the treatment
of potential monetization outcomes from CCS/CCUS10.
To sum up, this regulation represents Indonesia’s tangible step in
supporting sustainability and reducing greenhouse gas emissions. It
has to carefully consider technical, legal, and economic factors related
to the implementation of CCS/CCUS in upstream oil and gas activities.
10 ESDM. Aturan CCS/CCUS Diteken, Upaya Indonesia Capai Rendah Emisi dan
Tingkatkan Produksi Migas. 2023.
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APRIL
World Bank Proposes The World Bank proposes an energy transition framework for the
Energy Transition economies of developing countries. This framework is suggested
Framework for by the World Bank based on the consideration that the financing
challenges faced by developing countries differ from those of
Developing Countries
developed countries. According to a report titled ‘Scaling Up
to Phase Down’ by the World Bank, it is stated that developing
countries are often compelled to pay more for electricity if there
are no funds for energy transition and network infrastructure.
Furthermore, the World Bank notes that funding for energy
transition in developing countries requires higher capital than
currently available.
Eight countries classified as middle-income nations require
approximately USD 2.75 trillion to eliminate over 1,440 GW of
coal-fired power plants by 2050 and replace them with more
environmentally friendly technologies. These eight countries
are China, Indonesia, India, Malaysia, Philippines, South Africa,
Turkey, and Vietnam. The obstacle to accelerating the energy
transition in these developing countries is the high initial capital
costs for renewable energy projects. For this matter, World
Bank suggests taking a step to solve it, like establishing clear
and supportive regulations for energy transitions, transparent
and competitive project allocations, and requiring strategic
involvement from various institutions and stakeholders11.
In this regard, World Bank plays a crucial role in establishing an
energy transition framework that can serve as a reference for
developing countries. The initiatives by World Bank should also
11 Katadata. Bank Dunia Ajukan Kerangka Transisi Energi untuk Negara Berkembang.
2023.
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APRIL
Realizing the Ecosystem The government encourages the public to replace their
of Battery-Based Electric conventional motorcycles with battery-based electric motor
Motor Vehicles vehicles. Based on Figure 2, energy consumption in Indonesia
in the transportation sector is still dominated by Biodiesel
(44.05%) and Gasoline with a RON value of 90 (40.36%).
Meanwhile, electricity utilization is only 0.05%. This initiative
is made to accelerate the establishment of the Battery-based
Electric Vehicle Ecosystem (BEVE) in Indonesia. It is expected to
benefit the consumers and provide significant advantages for
the environment and the national economy. This conversion is
an implementation of Presidential Regulation Number 5 of 2020
to support the development of BEVE, reduce fuel imports, and
decrease greenhouse gas emissions.
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MAY
The Establishment of The government of Indonesia has officially issued the regulation
Government Regulation governing the areas of radioactive mineral mining, which serves
Number 25 of 2023 as raw material for nuclear power. This provision is outlined in
Government Regulation (GR) Number 25 of 2023 concerning
Regarding the Mining
Mining Areas. This regulation, specifically in Article 21 Paragraph
Area of Radioactive
1, explains that the extent and boundaries of the Radioactive
Minerals Mineral Mining Business License Area (WIUP) are determined by
the minister based on a proposal from the government agency
responsible for nuclear affairs. The government has taken this
step to secure the resources of nuclear raw materials for the
sustainability of future low-emission energy. Additionally,
radioactive minerals have high value, necessitating independent
management to maximize the obtained value.
Previously, in December 2022, the government issued a
regulation regarding the safety of nuclear mineral mining in
GR 52 of 2022 concerning the Safety and Security of Nuclear
Mineral Mining. This step indicates the government’s approval
for investors and business players to mine and establish Nuclear
Power Plants (NPP) in Indonesia. Besides regulations, the
government still has many jobs to do, starting from ranging from
technology and human resources (HR) to the most crucial aspect
– public acceptance of NPP development, especially in areas
near the NPP site. Therefore, the government cannot prepare for
everything alone thus it has to be cooperative and contributive
with industry players to build safe and environmentally friendly
NPPs collectively15.
Overall, the government’s establishment of regulation related
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JUNE
First Distribution of B35 B35 biodiesel, which was scheduled for distribution in February
Biodiesel 2023, was finally distributed for the first time on 1 June 2023. The
distribution of B35 was conducted by PT Pertamina Patra Niaga
through Pertamina Regional Jawa Barat. Pertamina has prepared
the facilities and infrastructure for the implementation of B35,
including storage facility, receiving facility, blending facility, and
quality control. The B35 product has undergone comprehensive
testing, such as vehicle performance, engines, and combustion
chambers testing.
The delay of this distribution was caused by several obstacles,
such as the remaining FAME stock with B30 specifications and
a B30 mixture at the Oil Fuel Terminal (TBBM). Additionally,
some facilities and infrastructures required adjustments that
could prevent the comprehensive implementation of biodiesel
blending at 35%. Following the delay in the simultaneous
distribution of B35 on 1 February 2023, the Director-General
of New and Renewable Energy and Energy Conservation, the
Ministry of Energy and Mineral Resources of Indonesia, issued
Decision Number 19.K/EK.05/DJE/2023 regarding the Guidelines
for the Implementation of Blending Biodiesel into Diesel Fuel at
35% (B35), with a tolerance given until 31 July 202316.
Based on the explanation by the Director-General of Oil and Gas
at the Indonesia’s Ministry of Energy and Mineral Resources,
Tutuka Ariadji, the implementation of the B30 program has
saved the country’s foreign exchange reserves up to 8 billion US
dollars or around IDR122 trillion throughout 2022 by reducing
the import of diesel fuel. Furthermore, it has also successfully
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JUNE
18 Katadata. PGE - Chevron Kembangkan Hidrogen dan Amonia Hijau di WKP Way
Ratai. Juni 2023.
19 Kontan. Permintaan Hidrogen dan Amonia Hijau Meningkat, Perusahaan Pupuk
Lebarkan Bisnis. Agustus 2023.
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JUNE
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JULY
The Coordinating Ministry for Maritime Affairs and Investment Indonesia & England
(Kemenko Marves) of Indonesia and the United Kingdom Signed Carbon Pricing
government have signed a partnership agreement for carbon
MoU
pricing through the UK Partnering for Accelerated Climate
Transition (UK PACT) program. The signing took place at Menara
Danareksa in Jakarta on Monday (24/7). According to the
Coordinating Minister for Maritime Affairs and Investment,
Luhut Binsar Pandjaitan, carbon pricing is a strategy to mitigate
climate change and keep global temperature increase below
1.5 degrees Celsius, in line with the COP26 and G20 climate
agreements in Bali.
This agreement supports the implementation of Presidential
Regulation Number 98 of 2021 on the Implementation of Carbon
Pricing. The collaboration will also involve the Fiscal Policy
Agency and the Directorate General of Taxation of the Ministry
of Finance. The Indonesian government plans to launch carbon
trading in September 2023 as part of its efforts to achieve net-
zero emissions by 2060.
According to World Bank, the ideal carbon price to prevent
global warming ranges from US$40-80 per metric ton of CO2 in
2020, increasing to US$50-100 per metric ton by 2030. Carbon
pricing policies can be implemented through various schemes,
including carbon emission permit trading, emission level
balancing, carbon absorption, or carbon taxes. The World Bank
states that these policies can encourage financial investment in
clean technologies and support low-carbon economic growth.
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21 Katadata. Indonesia - Inggris Teken Kerja Sama dalam Penetapan Harga Karbon.
2023.
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JULY
On Monday, 24 July 2023, PT Pertamina (Persero) opened a new chapter Pertamax Green 95:
in the history of the Indonesian fuel industry with the launch of Pertamax Innovation for a Greener
Green 9522. Sold at an affordable price of IDR13,500 per liter, Pertamax
Fuel
Green 95 marked a new era in cleaner fuel choices for Indonesian
consumers. The introduction of Pertamax Green 95 reaffirmed
Pertamina’s commitment to innovation and sustainability, supporting
the Indonesian government’s target for net zero emissions by 2060.
Pertamax Green 95, a blend of Pertamax and bioethanol from
sugarcane molasses, is a significant milestone in the green fuel
industry in Indonesia. This product offers a clean and renewable
fuel alternative for consumers, in line with the global trend towards
sustainable energy use.
The launch of Pertamax Green 95 has been warmly received by the
public23. The enthusiasm of the Indonesian people for Pertamax
Green 95 indicates a shift in consciousness. No longer just seeking
cheap fuel, the public is now prioritizing environmental impact in their
choices and consumption decisions. This positive response should be
a strong encouragement for the energy industry to be more active in
developing clean energy. Hence, the future of the energy business
would not only meet market needs but also maintain environmental
sustainability.
Currently, Pertamax Green 95 is available at 15 gas stations in Jakarta
and Surabaya. Pertamina has set an ambitious target to expand the
availability of this product to the entire Java Island within the next 12
months24.
22 CNBC. Sah! Pertamina Resmi Luncurkan BBM Pertamax Green 95. 2023.
23 CNBC.Baru Diluncurkan, Ternyata BBM Pertamax Green Banyak Peminat!. 2023.
24 CNN Indonesia. Daftar SPBU Pertamina yang Jual Pertamax Green 95 di DKI dan
Surabaya. 2023.
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AUGUST
The Improvement in the The Financial Services Authority (OJK) has issued Regulation
Formulation of Carbon No. 14/2023 on Carbon Trading through Carbon Markets.
This regulation serves as a guide for carbon trading through
Trading
Carbon Markets as market organizers. The regulation is part
of OJK’s efforts to support the government in implementing
climate change control programs by reducing Greenhouse Gas
(GHG) emissions. However, several aspects need attention
for improvement. First, the provision related to the capital of
IDR100 billion stipulated in Article 13 of Regulation No. 14/2023
is identical to the provision in Regulation No. 3/2021. This is
noticeable because the ecosystems of carbon exchanges and
stock exchanges are different.
Second, regarding delisting, if carbon trading resembles stock
trading, questions arise about whether there are delisting
provisions (removing a company’s shares from the exchange)
that can be initiated either at the issuer’s request or by the
exchange itself.
Third, Article 27 of Regulation No. 14/2023 relates to the
principles of transparency, equal access, and equal opportunities,
is considered contradictory to the definition of carbon as a
security. Last, in Article 25C point 8, there is a provision related
to the suspension of trading and the continuation of trading
during emergencies. The term “emergency” in this context is
unclear and ambiguous. Therefore, this article should be revised
to provide clarity on the definition of “emergency” 25.
25 Katadata. Aturan Bursa Karbon Terbit, Poin-poin Berikut Dinilai Harus Diperbaiki.
2023.
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AUGUST
The ASEAN Energy Indonesia and Laos have led the meeting of Energy Ministers
Ministers Agree on from ASEAN Member States, known as the 41st ASEAN Ministers
on Energy Meetings (AMEM-41). The meeting, held on 24-25
a Joint Statement at
August 2023, resulted in a Joint Ministerial Statement (JMS).
AMEM-41
This JMS includes the adoption of the Joint Declaration on
Sustainable Energy Security through Interconnectivity. Energy
interconnectivity is a priority for Indonesia’s economy during its
chairmanship of ASEAN in 2023. It also aims to achieve the ASEAN
regional target for interconnecting ASEAN countries through the
ASEAN Power Grid (APG) and Trans-ASEAN Gas Pipeline (TAGP),
including LNG infrastructure, by 2045.
In addition, the Ministers also acknowledged the ASEAN Strategy
on Carbon Neutrality, the ASEAN Economic Community’s Circular
Economy Framework, the ASEAN Taxonomy for Sustainable
Finance, and the ASEAN Blue Economy Framework to support
sustainability agendas in ASEAN. This meeting marks progress in
cooperation between ASEAN and IRENA concerning renewable
energy targets in ASEAN, taking into account energy transition
developments through energy efficiency, renewable energy,
energy management, and environmentally friendly technologies26.
This declaration serves as evidence of the seriousness of ASEAN
countries in accelerating the energy transition in the region.
However, each country needs to demonstrate this seriousness
through national policies. Additionally, implementation and
evaluation are crucial to ensuring that the agreed-upon declaration
genuinely accelerates the energy transition in the region.
26 ESDM. Menteri Energi ASEAN Sepakati Pernyataan Bersama pada AMEM 41.
2023.
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SEPTEMBER
The Air Quality Life Index (AQLI) report highlights Indonesia Air Quality and Pollution
as a significant contributor to global air pollution, along with in Indonesia
China, India, Pakistan, Bangladesh, and Nigeria. These countries
contribute to 75% of global air pollution, affecting public health,
and reducing life expectancy27. Air pollution in Indonesia,
particularly in major cities such as Jakarta, is experiencing
deteriorating conditions. IQAir data shows that the Air Quality
Index (AQI US) has reached 156, exceeding the previous 95.
This phenomenon occurs amid the ASEAN Summit, attended by
dozens of high-ranking officials, including leaders from ASEAN,
the United States, China, India, South Korea, and Japan28. The
increasing impact of air pollution has prompted civil society
reactions, with several groups planning legal actions, although
the government is trying to address the occurring air pollution.
In addressing air pollution in Indonesia, a mature understanding
of the complexity of the relationship between economic growth,
pollution, and energy is required. While renewable energy is a
solution, costs and other barriers must be considered carefully.
The Indonesian government must find the right balance between
economic growth and environmental preservation. The use of
coal is still necessary in the short term; however, serious steps
toward transitioning to renewable energy must also be taken.
With thoughtful planning, a focus on emission-contributing
sectors, and public support, Indonesia can achieve sustainable
economic growth while protecting the environment. Facing air
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SEPTEMBER
The Ministry of Energy and Mineral Resources (MEMR) of PYC International Energy
Indonesia, in collaboration with the Purnomo Yusgiantoro Conference 2023
Center (PYC), organized a side event during the Indonesia ASEAN
Chairmanship 2023, the PYC International Energy Conference
(IEC) 2023. This event took place on 15-16 September 2023 at
JS Luwansa Hotel Jakarta, under the theme “Collaboration in
Action for Inclusive Energy Roadmap.”
PYC IEC 2023 is the 4th international energy conference
held biennially by PYC since 2017. The event brings together
stakeholders in the energy sector, including students,
researchers, energy experts, private sector representatives, and
government officials at the local and international levels.
The plenary session was held on 15 September 2023, while the
parallel session on 16 September 2023. The parallel session
covered 4 different topics: policy, human capital, financing, and
a project showcase from PYC’s research team.
The results of discussions from the plenary session to the
parallel session produced a policy brief that will be provided
to the Indonesian government as input. This policy brief is
expected to create an inclusive energy transition roadmap. The
roadmap is also hoped to serve as a signal to the ASEAN region
that Indonesia can be a pioneer in formulating inclusive energy
policies29.
PYC consistently commits to providing in-depth understanding
and concrete solutions to global challenges in the energy sector.
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Other than organizing conferences like IEC 2023, PYC also makes
contributions in research-based insights through reports and
publications covering various aspects of the energy sector. Thus,
PYC serves not only as a prestigious energy discussion forum
through its conferences but also as an active contributor in
developing solutions for a more sustainable energy future.
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OCTOBER
The Ministry of Energy and Mineral Resources (MEMR) of The First Green
Indonesia, in collaboration with PT PLN Persero, inaugurated the Hydrogen Plant in
operation of the first green hydrogen plant (GHP) in Indonesia, Indonesia is Officially
located in the Muara Karang Gas Turbine Power Plant (PLTGU)
Operational
area in Jakarta on Monday, 9 October 202330.
The GHP produces hydrogen used to cool power generation
engines. There are 4 installed electrolyzers capable of producing
51 tons of green hydrogen per year. From the total hydrogen
production, PLN Nusantara Power (NP) sub-holding only utilizes
8 tons per year for the generator cooling system31.
Until now, the Muara Karang Gas Turbine Power Plant has been
producing grey hydrogen from an operational hydrogen plant.
Subsequently, PLN NP made an innovation by utilizing the
installed solar PV in the Muara Karang PLTGU area, supplemented
by Renewable Energy Certificates (RECs) from the Kamojang
geothermal power plant. Through this method, 100% green
hydrogen can be produced.
Hydrogen is one of the clean energy sources for the future that
can be utilized for various purposes, such as fertilizer production,
chemical industries, co-firing power plants, and Fuel Cell Electric
Vehicles (FCEVs). PLN remains committed to developing GHP
in 15 other PLN-owned power plants, with an estimated total
potential hydrogen capacity of up to 222 tons per year.
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OCTOBER
Test Flight of Sustainable Pertamina fulfills its commitment to reduce carbon emissions
Aviation Fuel at Garuda through the development of environmentally friendly fuel for
commercial aircraft, namely Sustainable Aviation Fuel (SAF) that
Indonesia
has successfully passed its first test flight. SAF is a blend of 2.4%
palm kernel oil and aviation turbine fuel, known as Jet Avtur 2.4
(J2.4).
The SAF test flight on a commercial aircraft was conducted at
Hangar 4 of Garuda Maintenance Facility AeroAsia, in the area
of Soekarno-Hatta International Airport, Tangerang, Banten, on
a CN235-220 FTB aircraft owned by PT Dirgantara Indonesia32.
The test flight covered the route from Husein Sastranegara
Airport, Bandung, West Java- Soekarno-Hatta International
Airport, Tangerang, and the reverse route. Previously, SAF had
been confirmed to pass the static test phase conducted in July
202333.
The development of biojet fuel is carried out by PT Pertamina
and ITB at the Treated Distillate Hydro Treating (TDHT) unit of
Refinery Unit (RU) IV Cilacap. In the future, SAF will be marketed
through PT Pertamina Patra Niaga for the aviation industry in
Indonesia.
The International Energy Agency (IEA) report states that the
aviation industry contributes more than 2% of global CO2
emissions. Therefore, sustainable innovations are needed to
reduce emissions from this sector. PT Pertamina is committed
to continuously increasing the percentage of biojet fuel in SAF.
32 CNBC. Sejarah Baru! Uji Terbang Bioavtur 2,4% di Pesawat CN235-220. 2023.
33 CNN. Uji Terbang Pertamina Gunakan SAF pada Garuda Indonesia Sukses. 2023.
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NOVEMBER
Indonesia’s journey towards sustainable energy transition gained Early Retirement Signing
new momentum with the non-binding agreement signing at of Cirebon-1 Power Plant
COP28 in Dubai, concerning the early retirement of the Cirebon-1 at COP28
Power Plant. This signing involved PT PLN (Persero), PT Cirebon
Electric Power (CEP), and the Indonesia Investment Authority
(INA) along with the Asian Development Bank (ADB), marking a
joint intention to cease the operations of the Cirebon-1 Power
Plant ahead of schedule.34
This agreement, scheduled to end operations in December
2035, 7 years earlier than initially planned, demonstrates
Indonesia’s commitment to reducing greenhouse gas emissions
and transitioning to cleaner energy. However, the non-binding
nature of this agreement raises questions about the seriousness
and certainty of its implementation. While this is a step forward,
there is still a need for more concrete and binding agreements to
ensure that this plan becomes a reality. The agreement should
be followed by actual actions and binding policies to ensure
that these ambitious targets are met. Initiatives like this must
be supported with stronger regulations, solid investments, and
closer cooperation between the government and the private
sector.
The agreement at COP28 reflects a desire to move forward, but to
achieve a fair and sustainable energy transition, Indonesia must go
beyond just non-binding agreements. Full engagement from all parties,
including private companies and the international community, will be
a key to realizing a responsible and effective energy transition vision.
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PYC Indonesia Energy Kaleidoscope 2023
NOVEMBER
President Jokowi breaks PT PLN (Persero) is set to address the energy needs of Indonesia’s new
ground for PLN PLTS 50 capital city (IKN), Nusantara, with the construction of a 50-megawatt
solar power plant (PLTS). The groundbreaking ceremony for this
MW Construction in IKN
pioneer in new and renewable energy (NRE) was presided over by
Nusantara
President Joko Widodo. The project demonstrates the government’s
commitment, through PLN, to establish a reliable electricity system
based on eco-friendly energy in line with IKN’s development as a green
and environmentally conscious city.
Jokowi emphasized the significance of the PLTS in annually reducing
emissions by up to 104,000 tonnes of carbon dioxide. With a capacity
to generate around 93 gigawatt hours (GWh) of green energy per
year, the PLTS effectively addresses the electricity requirements of
IKN. Jokowi put a stress on the importance of burying electricity lines
underground to maintain the city’s aesthetics, ensuring that cables do
not disrupt the visual appeal of the capital.
PLN President Director, Darmawan Prasodjo, confirmed PLN’s
dedication to creating a dependable electricity system supplied by eco-
friendly sources for IKN Nusantara. The PLTS, established through PLN
Nusantara Power subholding in collaboration with Singapore-based
Sembcorp Utilities Pte. Ltd., is expected to be operational by May 2024.
To further support green electricity needs, PLN will explore and utilize
hydro potential around IKN for hydroelectric power plants (PLTA) with
a capacity of up to 1000 MW. This aligns with PLN’s commitment
to achieving net-zero emissions (NZE) by 2060, ensuring that IKN’s
electricity system is 100% based on NRE35.
35 The Jakarta Post. President Jokowi Breaks Ground for PLN PLTS 50 MW
Construction in IKN Nusantara.
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PYC Indonesia Energy Kaleidoscope 2023
NOVEMBER
The Cirata Floating Solar Power Plant (PLTS), with a capacity Launching of Cirata
of 145 MW, equivalent to 192 MWp, officially commenced Floating Solar Power
operations in early November 2023 and was inaugurated directly
Plant
by President Joko Widodo36. The Cirata Floating Solar Power
Plant stands as one of Southeast Asia’s largest floating solar
power plants, ranking as the second-largest in the world. Figure 3
shows that until 2022, Indonesia’s primary energy supply will still
be dominated by coal at 40.71% and the NRE mix achievement
to date has only reached 12.8%. The construction of the Cirata
Floating PLTS is expected to accelerate the achievement of the
target of 23% by 2025.
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PYC Indonesia Energy Kaleidoscope 2023
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PYC Indonesia Energy Kaleidoscope 2023
NOVEMBER
In November 2023, President Joko Widodo inaugurated the The Inauguration of the
Tangguh Train 3 National Strategic Project (PSN), an investment Tangguh Train 3 LNG
project worth IDR 72.45 trillion related to the development of Refinery in West Papua
an LNG refinery in the Tangguh gas field, Teluk Bintuni, West
Papua. This project takes center stage in supporting Indonesia’s
climate change control program and reducing Greenhouse
Gas (GHG) emissions. During the event, the development of 3
other projects in West Papua was also announced as part of the
upstream oil and gas project and its derivatives.
The first project is the Carbon Capture, Utilization, and Storage
(CCUS) Ubadari Project, which is an integrated continuation of the
Tangguh Project. The second project involves the downstream
utilization of blue ammonia, while the third project focuses on
the development of the Asap Kido Merah (AKM) Natural Gas
Field in the Kasuri Working Area.
The Tangguh Train 3 Project is part of the Tangguh Field,
Indonesia’s largest natural gas producer. With this significant
investment, it is expected to meet the national gas demand,
providing significant economic benefits and playing a role in
climate change mitigation. With the operation of Train 3, Tangguh
will become Indonesia’s largest gas producer, contributing
around 35% of the national production with an annual output of
11.4 million tons. The project also adopts Carbon Capture and
Storage (CCS) technology to reduce greenhouse gas emissions.
CCS technology involves a series of process that capture carbon
dioxide (CO2) from industrial sources and safely and permanently
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PYC Indonesia Energy Kaleidoscope 2023
38 Tempo.co. Jokowi Resmikan PSN Kilang LNG Tangguh Train 3 di Papua Barat
Senilai Rp 72,45 Triliun. 2023.
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PYC Indonesia Energy Kaleidoscope 2023
DECEMBER
The 28th session of the Conference of the Parties (COP28) to the United COP28 in Dubai
Nations Framework Convention on Climate Change (UNFCCC) took Opens, Calls for Global
place from 30 November-12 December 2023, in Dubai, United Arab
Collaboration to Achieve
Emirates. Sultan Ahmed Al Jaber, the President Designate for COP28,
National Net Zero
emphasized that a current challenge in climate change mitigation
is the tangible implementation of agreements and commitments
by various countries regarding energy transition. A crucial issue in
current climate mitigation efforts is the gap between developed and
developing nations. COP28 aims to drive clear implementation of all
roadmaps agreed upon since the Paris Agreement in 201439.
Many developing countries face infrastructure and funding challenges
to align their actions with those of developed countries in energy
transition. Therefore, the global community needs to establish
policies that promote a fair and accessible energy transition for all
groups. Energy transition is crucial in sustaining the current rapid
economic growth momentum. Accelerating the development of
renewable energy through energy transition presents an opportunity
to build national capacity, create more jobs, enhance societal well-
being, alleviate poverty, and preserve the environment.
COP28 will prioritize justice and access for all mankind. The energy
transition agenda should catalyze the economic growth of each
country. Furthermore, this agenda should create opportunities in the
green economy, generating new employment and supplying fair and
environmentally friendly energy. This global collaboration serves as a
reference for every country to play a role in driving energy transition.
39 Kompas. COP28 Dibuka, Dirut PLN Paparkan Inovasi dan Ajak Kolaborasi Global
untuk Capai NZE Nasional 2060. 2023.
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