How Serious is the Government about the Energy Transition?

The energy transition cannot be delayed any longer. At a time when reserves of oil and gas are running out and prices are rising, there is no choice but to find new and renewable energy sources. Not only must energy be new, but also the energy of the future must be renewable so it is in accordance with the policy to mitigate climate change.

The government has already drawn up a road map for the transition to clean energy. In the program, produced by the energy and mineral resources ministry, the contribution of new and renewable energy to the overall mix of national energy will be steadily increased. From 2021 to 2025, the proportion will increase from 13.7 percent to 23 percent. From 2030, the government will only build new and renewable energy power plants, and by 2049 there is even a plan to use nuclear energy.

This road map is part of Indonesia’s endeavor to meet its commitment to reducing carbon emissions, as mandated by the Paris Accords. From 2021 to 2025, there needs to be a 198 million-ton reduction in carbon dioxide (CO2). From 2030, carbon emissions must fall by 314 million tons by 2060. In order to achieve net zero emissions, Indonesia will have to reduce emissions by up to 1,526 million tons of CO2.

It will not be easy to achieve this plan, and neither will it be cheap. According to government calculations, the energy transition will cost US$5.7 billion, or around Rp85 trillion per year. As well as building new and renewable energy power plants, the government also needs funds to move away from fossil fuel power plants, which will shortly be retired. And sufficient funds will also be needed for the energy transition in the transportation and industry sectors.

The nation does not have enough funds for this. Now the government is seeking new sources of funding for the energy transition, from loans from international financial institutions and creative funding to use of donations and funds from philanthropists that have an interest in owning sustainable energy sources.

Is the government serious about energy transition? If all this just remains on paper, our time is limited. Experts at the United Nations have predicted that without determination from every nation, our planet will be seriously affected as a result of global warming by 2030. The energy transition is the main hope for us to avoid this calamity.

We analyze the energy transition proposal in this week’s edition. Enjoy the magazine.

Fery Firmansyah

Main Editor

ECONOMY

Capturing Profit from Energy Transition

How will the government seek funding to pay for the energy transition and what would it be used for?

Carbon Tax in Limbo

One instrument for reducing emissions is the carbon tax. But carbon trading is still unclear, and the taxation has been repeatedly delayed.

Slow Steps for Going Green

Industry will not go ahead without funding. Another way to stop industry destroying the environment is to ask banks to stop funding it. They should shift to green businesses.

Avoiding Losses from the Transition

As the state-owned company with the monopoly on electricity generation, PLN must participate in the energy transition. Its reluctance to do so will delay the mitigation of climate change.

When City Buses Switch Power

The transportation sector is important in the energy transition. How is it preparing?

OPINION

Obstacles to the Energy Transition

The main obstacle to the energy transition is political will. How much of it do we have?

INTERVIEW

Interview with the Energy and Mineral Resources Minister

Energy and Mineral Resources Minister Arifin Tasrif explains the energy transition program aimed at achieving net zero emissions set out by the Paris Agreement. Indonesia will need at least US$1 trillion for the transition

SCIENCE & TECHNOLOGY

Waiting for Wind and Solar Power Plants

Two sources of energy that are new—although already in widespread use—and renewable are wind and solar. How will such power plants replace coal?

NATIONAL

Hasty Efforts to Pass a New Criminal Code

The government is lobbying a number of circles so that the Criminal Code Bill can be passed as soon as possible. Some problematic articles pose a danger to democracy and privacy rights remain intact.

OPINION

The Undemocratic Criminal Code

The Criminal Code Bill is full of legal threats to personal and political rights. It is anti-democratic.