Energy transition towards renewable sources is a crucial target to achieve net zero emissions by 2060. Currently, coal accounts for 35.36%, natural gas for 19.36%, and crude oil for 34.38% of energy consumption.
Nearly all sectors—industry, transportation, agriculture, and housing—rely on fossil fuels, contributing to carbon emissions and climate change.
The UGM Faculty of Engineering addressed the energy transition discourse through a discussion titled “Energy Transition Discourse: Indonesia’s Pathway to Achieving Net Zero Emissions by 2060” on Saturday, October 14.
The rainy season, which usually begins around this time based on previous years, hasn’t arrived yet. Some areas are facing water shortages. As individuals, we can take various actions, such as managing electricity usage and shifting to public transport,” said Professor Selo, the Dean of the UGM Faculty of Engineering.
“Fossil fuel consumption is on the rise, and if left unchecked, it will be detrimental. Presently, renewable energy growth is not meeting expectations.”
Under Indonesia’s G20 Presidency, world leaders have agreed to emphasize energy transition, especially in Indonesia. This commitment aims to lead other countries toward energy transition.
“Indonesia is the fourth most populous country but ranks 12th globally in energy usage. It’s somewhat alarming; we must be cautious. Additionally, we’re the world’s top coal exporter. We have a net zero emission milestone timeline,” added Dr. Ahmad Agus Setiawan.
“This can’t be delayed; it’s an emergency. This is the time to utilize available technology maximally. While 2050 isn’t a short time for an energy revolution, it must be expedited.”
Coal, a significant contributor to carbon emissions, has been a primary energy source in Indonesia for many years. Coal growth has doubled since 2000, reaching up to 61%. This trend contrasts with the relatively stagnant growth of renewable energy.
The nation’s reliance on the coal industry is a significant barrier to achieving an energy transition scheme. Potential losses from industry reduction or cessation pose a threat.
At least three main challenges exist: Indonesia’s $20 billion debt, the targeted reduction in coal usage in the coming years, and the lack of policy implementation regarding coal consumption.
“There are four key elements to a successful energy transition in Indonesia. Regarding the system, balance is crucial—how PLN’s role will evolve and how the energy industry will operate in tandem,” added M. Rizki Kresnawan from the Climatework Center at Monash University.
“On a community level, there’s still a need for encouragement. Another issue is ensuring a smooth transition. Even if sectors close, the economy shouldn’t collapse, and no further disruptions should arise.”
Author: Tasya