Jakarta, PWYP Indonesia – A few days away from Rakernas 2021, PWYP Indonesia held an online discussion entitled “Energy Transition In The Framework of Sustainable Regional Development” on Thursday (4/2). Present as resource speakers in this discussion were Tony Sandy, Directorate General of New and Renewable Energy and Energy Conservation (EBTKE) from Energy and Mineral Resources (ESDM); Satya Widya Yudha, member of National Energy Council (DEN); Hendriansyah, Head of Department ESDM South Sumatra Province and Grita Anindarini, Deputy Director of Indonesian Center for Environmental Law (ICEL).

Tony Susandy, a representative from Directorate General of EBTKE ESDM, opened the discussion by emphasizing that an acceleration program is needed to fulfill the target of New and Renewable Energy (NRE) through the construction of NRE generator with competitive cost and the placement of NRE as a national economic recovery activity. He highlighted the total potential of NRE in Indonesia equals 417.8 GW, but the utilization/installed capacity is still at 10.4 GW. Tony described the NRE acceleration program carried through primary/final energy substitution, primary fossil energy conversion, the addition of NRE capacity, and non-electric/non-fuel NRE utilization.

“So far, the Ministry of ESDM has started several programs to fulfill the NRE target. Among them are biodiesel mandatory policies to reduce import and save foreign exchange, biomass co-firing program, large scale solar power plants development, conversion of the fuel power plant into NRE. The development program of the solar power plant on the roof of the building, and launching a battery-based electric vehicle to increase the national energy security,” said Tony.

Source: Tony Susandy’s Presentation, 2021

Furthermore, Satya Widya Yudha underlined the importance of changing Indonesia’s energy management paradigm from being a commodity to becoming the agent in increasing economic growth and capital development. There is a regulation that discusses this; it is Government Regulation (PP) 79/2014 regarding National Energy Policy (KEN). The priority of energy development could be done by improving the industrial sector in the area rich in related national resources.

Related to the Regional Energy General Plan (RUED) draft, Satya explained that “So far, there are 19 provinces with established local regulations related to RUED. Two provinces are on invitation process in regions, one province is in the process of facilitation for register number at the Ministry of Home Affairs, nine provinces already put it in Regional Regulation Establishment Program (Propemperda) 2021, and 3 provinces already have RUED draft but has no budget for 2021.” He explained.

Source: Satya Widya Yudha’s Presentation, 2021

Hendriansyah, Head of Department ESDM South Sumatra Province, gives the regional perspectives in energy transition and sustainable development. He acknowledges that South Sumatra has an urgency to perform an energy transition because the production and lifting from the oil and gas sector decrease every year. It is supported by the massive potential of NRE in South Sumatra, which is a total of 21,032 MW, and only 859 MW (4.08%) has been utilized. Besides, the publication of Law (UU) Number 3 of 2020 regarding Mineral and Coal limits the province’s authority to manage the mineral and coal sector. It certainly makes South Sumatra enthusiastic about contributing to the target of utilizing the NRE sector and reducing the dependence on imported fuel.

On the other hand, Hendriansyah also explained the challenges in the use of NRE in South Sumatra, including the decrease of locally-generated revenue (PAD) from oil and gas and mineral and coal, which could result in the reduction in labor, as well as incurring costs for replacing technology to be energy efficient and renewable energy. “However, South Sumatra is ready to become a national energy store in the NRE sector by supplying, optimizing, and conserving for local and national energy and developing energy infrastructure in the regions,” said Hendriansyah.

Source: Presentasi Hendriansyah, 2021

Meanwhile, Grita Anindarini, Deputy Director of ICEL, reminded the energy trilemma or energy pyramid to achieve a sustainable energy transition, namely energy security, environmental sustainability, and energy equity. She argues that peoples are still mistaken between new energy (ex: coal gasification, nuclear) and renewable/sustainable energy (ex: wind, solar). New energy and renewable energy receive equal priority and treatment in regulations even though the environmental risks and threats are different. Community involvement in the energy transition must be needed to keep an eye on these issues.

Moreover, Grita also underlined the need for a comprehensive public participation space since the early stage of decision making to open up opportunities for revision based on new information obtained from the public. The role of civil society could be in the form of escort and supervision of the government in the preparation of RUEN/RUED, RUKN/RUKD, RUPTL, and AMDAL, RTRW, and KLHS, with their implementation. Grita, in her closing, stated that the current legal framework conditions are not yet supported for the development of NRE. “It has been almost 14 years since the last NRE was regulated in the form of PP in Law 30/2007.

“A consistent regulation/rule is needed so that the target of the NRE mix can be achieved”, Grita concluded. As we all know, the national energy mix’s achievement target in using New and Renewable Energy (NRE) in 2025 is 23%. Meanwhile, the achievement of NRE utilization in Indonesia in 2020 is still far from the target, at 10.90%. (ka)