As the government approaches the end of its term in October 2024, President Joko Widodo’s energy transition program has yet to meet its set targets. The goal of achieving a 23 percent share of renewable energy (RE) by 2025 remains unmet, as it has only reached 12.8 percent by 2023.
Regrettably, the government has reduced the RE target to 17 percent by 2025 instead of accelerating progress. Despite this lowered target, achieving it is difficult, given the few remaining months of effective government work.
According to UGM energy economics observer Dr. Fahmy Radhi, one reason for not meeting the RE target is a half-hearted energy transition policy. This policy tends to contradict the acceleration of the energy transition program.
“One example is that the government still tolerates the construction of coal-fired power plants (PLTU),” he said at the UGM campus on Monday (May 13).
Data from the end of 2020 shows that the primary energy mix for PT Perusahaan Listrik Negara (PLN) power plants was still dominated by coal at 57.22 percent, followed by gas at 24.82 percent, and oil at 5.81 percent. Meanwhile, the share of RE only reached 12.15 percent.
Dr. Radhi noted that PT Pertamina and PLN have made various efforts to develop RE to accelerate the energy transition program. Unfortunately, the results remain very minimal.
Pertamina’s biodiesel and coal gasification programs failed after partners from Italy and the USA withdrew from Indonesia. The development of biodiesel, an RE program based on palm oil, also risks clashing with food programs to produce cooking oil.
Unlike Pertamina, PLN’s RE development program has been relatively successful. In 2023, PLN completed 28 new RE power plants, the dedieselization program with the construction of transmission and distribution networks, and green hydrogen development.
“One of the most phenomenal energy transition efforts is the inauguration of the Cirata floating solar power plant (PLTS) project with a capacity of 192 megawatt peak (MWp). However, the early retirement program for coal-fired power plants is not yet complete due to difficulties in funding and technology provision,” he explained.
As an observer, Dr. Radhi hopes that President-elect Prabowo Subianto will boldly overhaul Jokowi’s half-hearted energy transition policy, which contradicts the acceleration of the energy transition program. One step should be to mandate coal processing, a dirty energy source, into clean energy.
“Additionally, the government must provide ease and incentives for investors in developing RE in Indonesia. Without these policy changes, the zero carbon target by 2060 is unlikely to be achieved,” he concluded.
Author: Agung Nugroho
Photo: freepik.com