Press Release
For immediate release

NEW AND RENEWABLE ENERGY BILL AND NATIONAL ENERGY POLICY DRAFT
IS NOT AMBITIOUS ENOUGH TO ACHIEVE A JUST ENERGY TRANSITION

Jakarta – On June 24 and 25, 2024, the Working Committee (Panja) of the New and Renewable Energy (EBET) Bill of Commission VII of the House of Representatives (DPR) RI resumed discussions on the EBET Bill with the Panja EBET Bill from the Government and Regional Representatives Council (DPD) regarding three pending issues. On these three issues discussed, the meeting only agreed on two issues regarding the use of Domestic Component Level (TKDN) and the fulfilment of electricity needs from EBET based on the Electricity Supply Business Plan (RUPTL). This agreement indicates some updates from the EBET Bill discussions that have been stalled for almost two years since the government’s Inventory of Problems List (DIM) was submitted on November 29, 2022.

Earlier this month, a Meeting between the Minister of Energy and Mineral Resources (ESDM) and Commission VII held on Wednesday, June 5, 2024, revealed that the Draft Government Regulation (RPP) on National Energy Policy (KEN) had been harmonized by the Minister of Law and Human Rights (Menkumham) as of June 4, 2024. This RPP KEN will be submitted to Commission VII for further discussion in accordance with the provisions of Law Number 30 of 2007 on Energy, which mandates the determination of KEN with the approval of the DPR RI.

The EBET Bill and RPP KEN should serve as key energy policy documents in Indonesia which could facilitate a just energy transition towards net zero emissions. Through a press release from the Ministry of ESDM (29/11/2022), the government has agreed on energy transition regulations and a roadmap (through the DIM of the EBET Bill). This roadmap has undergone adjustments to its substantive order, starting from energy mix targets referring to the National Energy Policy (KEN), the roadmap for energy transition in both the medium and long term, to the implementation of the transition.

Reflecting on this condition, a number of civil society organizations have highlighted the development of renewable energy policy direction in the RPP KEN. Compared to existing regulations, which mandate a renewable energy mix of 23% by 2025, the RPP KEN actually lowers the target to 19-22% by 2030. If the renewable energy provisions of the EBET Bill reflect the current targets in the RPP KEN, the transition to renewable energy will certainly slow down.

“The reduction of the renewable energy mix target in the RPP KEN needs to reflect the urgency and commitment to transition from fossil energy to renewable energy, especially since global stocktake recommendations emphasize accelerating renewable energy development by three times if we are to avoid climate disaster. Studies released by IESR reinforce this, stating that to achieve full decarbonization in the energy sector, the renewable energy mix needs to reach 80% by 2040, while the RPP KEN still targets far below that, at 36-40% by 2040,” explained Verena Puspawardani from Koaksi Indonesia.

A number of civil society organizations believe that the EBET Bill should truly focus on accelerating and enhancing the competitiveness of renewable energy. The EBET Bill is still laden with interests pushing for high-risk, carbon-intensive energy such as gas, nuclear, co-firing, hydrogen, coal bed methane, coal liquefaction, and coal gasification. The EBET Bill and RPP KEN also target the use of land-based energy on a large scale, particularly biomass.

Hadi Priyanto, Renewable Energy Campaigner at Greenpeace Indonesia, said, “For civil society organizations, provisions related to new energy, such as hydrogen and nuclear, should be removed from the EBET Bill and RPP KEN. Both the EBET Bill and RPP KEN still allow the development of fossil energy as long as it is accompanied by Carbon Capture and Storage (CCS) technology. Moreover, the addition of fossil gas as a transition fuel in the RPP KEN actually hampers the genuine energy transition. Providing room for fossil energy usage will lock Indonesia into that technology and further narrow the space for renewable energy to develop.”

The importance of strong ambition for transitioning to renewable energy in the EBET Bill is also seen as a prerequisite for mainstreaming the mandate of renewable energy development in various regulations and planning documents. Strong ambition will also provide a strong signal and optimism for developing renewable energy targets. An ambitious EBET Bill in developing renewable energy, as reflected in the RPP KEN, will open the door for renewable energy to receive priority.

“Currently, Indonesia still has several different renewable energy targets, both in the KEN document, Nationally Determined Contributions (NDC), Long Term Strategy for Low Carbon and Climate Resilience (LTS-LCCR), and Just Energy Transition Partnership (JETP). This certainly causes overlap in implementation. In addition, regulatory and policy infrastructure in the energy sector has not provided sufficient space and incentives for the ease of renewable energy development. Therefore, prioritizing renewable energy in the EBET Bill and RPP KEN will provide a strong signal to encourage alignment of regulations, policies, and planning in the energy sector to facilitate a just transition to renewable energy,” said Syaharani, Acting Head of the Environmental Governance and Climate Justice Division, Indonesian Center for Environmental Law (ICEL).

Another important point highlighted by several civil society organizations is the absence of narratives on justice and human rights guarantees in the EBET Bill and RPP KEN, such as guarantees of access to data and information and public participation in renewable energy development.

“The community needs to be facilitated to become important actors in the provision, management, and utilization of renewable energy as part of achieving energy independence. The EBET Fund regulated in the EBET Bill should be accessible to communities through cooperatives or village-owned enterprises (BUMDes), considering many local-scale renewable energy developments by communities often have difficulty obtaining financing,” added Syaharani.

Finally, the lack of justice aspects is also shown by the absence of considerations regarding the social impact of energy management, including renewable energy. Both the EBET Bill and RPP KEN provide ease of land provision for energy interests. This ease potentially encourages land grabbing for energy projects. The technocratic approach to renewable energy management and energy transition tends to prolong the injustice that communities have experienced for so long.

The government should be more ambitious in transitioning energy by emphasizing renewable energy in the national energy mix. Spaces that still accommodate fossil energy or new energy interests will make it difficult to create a higher level of playing field for renewable energy and further delay achieving a just energy transition.

Furthermore, Indonesia’s energy transition policy needs to be based on justice with the ability to illustrate a commitment to reducing the average global temperature below 1.5°C as agreed in the Paris Agreement and ensuring the fulfilments of community and environmental rights in the process. The destruction of nature and the extinction of humanity on Earth cannot be negotiated.

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List of Civil Society Organizations

  • Koaksi Indonesia
  • Indonesian Center for Environmental Law (ICEL)
  • Publish What You Pay (PWYP) Indonesia
  • Yayasan Indonesia Cerah
  • Greenpeace Indonesia
  • Indonesian Parliamentary Center
  • WWF-Indonesia
  • 350.org Indonesia

Contacts:

  • Syaharani (Acting Head of the Environmental Governance and Climate Justice Division – Indonesian Center for Environmental Law): syaharani@icel.or.id
  • Verena Puspawardani (Program Director at Koaksi Indonesia): verena.puspawardani@coaction.id
  • Hadi Priyanto (Renewable Energy Campaigner at Greenpeace Indonesia): hadi.priyanto@greenpeace.org