Indonesia is targeting a 31.89 percent reduction in greenhouse gas emissions by 2030 through efforts to transition to renewable energy and implement carbon trading. This step is part of the strategy towards Net-Zero Emission by 2060, or sooner if supported by the international community.
Climate change control is a shared responsibility, not only of the Indonesian government but also of the international community. Through the Enhanced Nationally Determined Contribution (ENDC), Indonesia targets a reduction in greenhouse gas emissions of 31.89 percent with its own efforts and up to 43.20 percent with international assistance by 2030, and seeks to achieve Net-Zero Emission no later than 2060.
Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized the importance of accelerating renewable energy innovation and energy transition because the energy sector contributes around 34 percent of total greenhouse gas emissions in Indonesia. According to him, although not easy, the green transition is the most effective step to address the emission problem.
Indonesia's Efforts Towards Energy Transition
Asia Zero Emission Community (AZEC)'s logo | The Government of Japan
To support the energy transition, the Indonesian government has issued a number of regulations, including Presidential Regulation Number 98 of 2021 concerning the Economic Value of Carbon (NEK) which includes a carbon trading mechanism. In February 2023, the Emission Trading System (ETS) began to be implemented in the power generation sector, followed by the launch of the Carbon Exchange (IDX Carbon) in September 2023. Through this scheme, it is estimated that greenhouse gas emission reductions can reach at least 100 million tons of CO₂ equivalent by 2030.
The government is currently reviewing plans to retire coal-fired and diesel-fired power plants early through the Just Energy Transition Partnership (JETP) funding scheme. From the JETP initiative which is the result of the 2022 G20 Summit, Indonesia has obtained a funding commitment of US$21.6 billion.
Indonesia and Japan play an important role in the formation of the Asia Zero Emission Community (AZEC). To date, AZEC has overseen 78 energy transition projects in Asia, with 34 of them coming from Indonesia which are expected to receive JETP funding through the platform.
The government also encourages the use of clean energy based on plant-based materials through the Mandatory Biodiesel program, with the implementation of B35 which has become an example of success in supporting the achievement of SDGs. Indonesia, which has consistently run this program for eight years with the highest blending rate, is now preparing for the launch of Mandatory B40 which is planned for January 2025.
Hybrid Power Generation Concept
Hybrid Solar Power Plant in Selayar Islands Regency, South Sulawesi | PT PLN (Persero)
The reduction of greenhouse gas emissions is also driven through research and innovation. The National Research and Innovation Agency (BRIN) is currently developing a hybrid concept that combines PLTS and Pumped Hydro Energy Storage (PHES) with support from PLTMH, which has the potential to be a source of sustainable electrical energy.
Researcher from the Research Center for Energy Conversion and Conservation (PRKKE) BRIN, Andhika Prastawa, explained that in this hybrid system, electricity from PLTS is used to meet energy needs during the day. Meanwhile, PLTMH plays a role in providing electricity supply at night or when PLTS cannot operate.
Andhika explained that the utilization of water energy through the development of PLTMH has great potential, with around 26,000 off-river locations in Indonesia that have not been utilized and an energy storage capacity of 800 Terawatt hours (TWh). However, the development of PLTS-PHES hybrid technology in Indonesia still faces challenges, such as the need for more detailed potential mapping, sufficient funding, supportive price regulations, and realistic logistical support.
BRIN emphasized the need for strong collaboration between government, industry, and research institutions to optimize renewable energy potential in Indonesia. This collaboration is considered crucial to realize maximum utilization of renewable energy.
Sources:
Indonesia.go.id. (2024). Biodiesel hingga Hydro: Komitmen Indonesia Kurangi Emisi Gas Rumah Kaca. https://indonesia.go.id/kategori/budaya/8575/biodiesel-hingga-hydro-komitmen-indonesia-kurangi-emisi-gas-rumah-kaca
