Civil society organizations within the Coalition of Just Energy Transition have urged the government to not lower the renewable energy mix targets outlined in the draft revision of Government Regulation No. 79 of 2014 on National Energy Policy (KEN). Instead, the RPP KEN should establish policies to seek solutions for increasing ambitious just energy transition targets. Specifically, it should include a target for renewable energy to reach 60% by 2030 and halt the development of new fossil energy.
This was conveyed by the Coalition of Just Energy Transition during a hearing with Commission VII of the Indonesian House of Representatives (DPR RI) from the Democratic Faction on Tuesday, September 3rd. The Democratic Faction was represented by the Chair of the Democratic Faction in Commission VII, Sartono Hutomo, Hendrik Halomoan Sitompul, and Zulfikar Hamonangan.
The Coalition of Just Energy Transition requested the Democratic Faction to advocate for the KEN revision to increase renewable energy mix targets to 60% by 2030 and achieve 100% by 2050. This target should exclude land-based energy types that lead to deforestation, such as biomass, and nuclear energy, which poses risks for Indonesia, given its vulnerability to earthquakes and inadequate infrastructure to manage nuclear energy.
HEARING PROCESS OF CIVIL SOCIETY COALITION WITH COMMISSION VII OF DPR RI FROM THE DEMOCRATIC FACTION
Anggi Prayoga, a campaigner from Forest Watch Indonesia (FWI), highlighted that the fulfillment of wood biomass (wood pellets) all this time has been done through the development of Energy Plantations (HTE) by deforesting areas in Aceh, Jambi, Bangka Belitung, various provinces in Kalimantan, and Gorontalo. FWI projected that 4.65 million hectares of natural forests are threatened by HTE projects and the implementation of biomass co-firing in coal power plants. “If this practice continues unchecked, Indonesia will face an emissions debt from the destroyed forests,” he emphasized.
In agreement with Anggi, Bella Nathania, Acting Director of the ICEL Program, also stressed the importance of reevaluating nuclear priorities as an energy mainstay in the RPP KEN. “Moreover, Indonesia lacks the infrastructure readiness, especially for nuclear waste management. Given Indonesia’s geographical conditions, a nuclear power plant on Bangka Island would impact regions as far as North Sumatra.”
Indra Sari Wardhani, Acting Director of the Koaksi Indonesia Program, stated that the Democratic Faction appreciated and accepted the issues raised by the Coalition in the form of an inventory list. It was also expressed that the Civil Society Coalition hopes the Democratic Faction can advocate for these inputs in discussions with the government at the DPR.
According to Indra, the KEN revision must eliminate the use of fossil energy disguised as “new energy” under terms like liquefied coal, gasified coal, and coal bed methane, and should not allow the transition to serve as a space for gas expansion. Furthermore, the KEN revision should not promote carbon capture technology (CCS/CCUS) as a shortcut, as it poses financial risks and high failure potential, thereby prolonging Indonesia’s dependence on fossil energy.
The reliance on fossil energy has serious implications for the country’s economic burden. According to the report of “Ambiguity vs. Ambition: A Review of Indonesia’s Energy Transition Policy,” produced by Trend Asia in collaboration with the Centre for Research on Energy and Clean Air (CREA), as of 2021, approximately 33% of 58 gigawatts (GW) of installed power generation exceeds Indonesia’s electricity needs. This has led to operational and maintenance costs amounting to IDR 16 trillion or US$1.2 billion.
“Moreover, the losses due to pollution from fossil fuel plants are substantial and have direct impacts on communities where these plants operate. Other research from CREA reminds us of the pollution produced by 10 coal-fired power plants in Banten, which results in economic costs of up to IDR 71.3 trillion per year,” said Beyrra Triasdian, Renewable Energy Manager at Trend Asia.
The Coalition also requested that the KEN revision accommodate the needs of local governments as key actors in decarbonization through enhancement. This is vital because local governments will be responsible for creating and implementing Regional Energy General Plans, which are derivatives of KEN implementation in their respective areas.
Mahawira Singh Dillon, a representative from TransisiEnergiBerkeadilan.id, added that transitioning to renewable energy will create far more jobs. This is crucial to ensure that Indonesia’s demographic bonus does not turn into a disaster of demographic time bomb.
“The options for renewable energy generation have proven to create more jobs than fossil energy options, as shown in the annual US Energy Employment & Jobs Report by the US Department of Energy, even though the fossil energy mix is still larger. Additionally, a 2022 study by the UKERC (UK Energy Research Centre) shows that renewable energy creates about three times the number of jobs generated by fossil energy per the same unit of investment,” said Wira.
During the hearing, Wira said that the Democratic Faction received the inputs presented by the Coalition of Just Energy Transition, particularly regarding the affirmation of commitment to energy transition in the KEN draft. The Democratic Faction also expressed its intention to inquire further with the government about the reduction of renewable energy mix targets in the draft.
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