Transisi Energi, Masa Depan Indonesia - IESR

Summary

Indonesia, with its 432 GW renewable energy potential, is lagging behind in transitioning from fossil fuels, which currently supply over 85% of its electricity. Despite a global trend towards renewables, Indonesia's annual renewable energy capacity growth is only 334 MW, compared to Vietnam's 1745 MW. Financial institutions are divesting from fossil fuels and increasing investments in renewables, which reached $325 billion in 2020. Indonesia must accelerate its energy transition to mitigate climate change, improve energy resilience, and reduce the economic burden of stranded fossil fuel assets.

Takeaways

• 📊 As of 2019, over 90% of Indonesia's primary energy supply comes from non-renewable sources like oil, coal, and gas, while only about 8% is from renewable energy.
• 🔋 Despite having a renewable energy potential of 432 gigawatts, which is eight times the current installed capacity, Indonesia has only commercially utilized 10.3 gigawatts of renewable energy.
• 🌍 Globally, there is a significant increase in the trend towards renewable energy, yet Indonesia's average annual increase in installed renewable energy capacity over the past decade is only 334 megawatts, lagging behind countries like Vietnam with an increase of 1745 megawatts per year.
• 💹 The cost of generating electricity from renewable energy is becoming increasingly competitive, with technological disruptions in the energy sector, such as modular, decentralized, and democratized solar power technologies, potentially changing Indonesia's electricity business model in the future.
• 🏦 Over 1000 financial institutions with assets over 11 trillion US dollars have started divesting from fossil fuel energy assets, with a concurrent increase in renewable energy investments, exceeding 200 billion US dollars per year globally.
• 📉 Delaying the transition to renewable energy increases the risk of stranded fossil fuel assets due to competitive renewable energy prices, which could eventually become an economic burden for the nation.
• 🌿 Indonesia's commitment to global climate change mitigation must be seriously realized to protect its citizens from the increasingly tangible impacts of climate change.
• 🎯 Based on the development plan, Indonesia has set a target of reducing emissions by 29% by 2030, but this is still not considered ambitious enough to meet the Paris Agreement targets.
• ⏳ The transition to renewable energy in Indonesia is urgent and requires a sustainable approach to enhance energy security and significantly reduce greenhouse gas emissions.
• 🏗️ The transition process will take time and needs to start early, involving all stakeholders to manage the impacts effectively.
• 🌞 As consumers, we can support the transition by urging the government to increase the share of renewable energy more aggressively and by adopting renewable energy technologies like rooftop solar for homes and offices.

Q & A

What percentage of Indonesia's primary energy supply comes from non-renewable sources like oil, coal, and gas?

Over 90% of Indonesia's primary energy supply comes from non-renewable sources such as oil, coal, and gas.

How much of Indonesia's electricity supply is generated from renewable energy sources?

Only about 8% of Indonesia's electricity supply comes from renewable energy sources.

What is the potential of renewable energy in Indonesia in terms of gigawatts?

Indonesia has a potential of 432 gigawatts of renewable energy, which is eight times the current total installed capacity.

How much of the renewable energy potential has been commercially utilized in Indonesia?

Only 10.3 gigawatts of renewable energy has been commercially utilized in Indonesia.

What is the global trend regarding the adoption of renewable energy?

The global trend shows a continuous increase in the adoption of renewable energy, with significant growth in the last decade.

How does the annual growth rate of installed renewable energy capacity in Indonesia compare to Vietnam?

Indonesia's annual growth rate of installed renewable energy capacity is around 334 megawatts per year, whereas Vietnam's rate is 1745 megawatts per year.

What is the impact of delaying the transition to renewable energy on Indonesia's economy?

Delaying the transition to renewable energy could lead to a larger number of stranded fossil fuel assets and increased economic burden due to competitive renewable energy prices.

How does the trend of financial institutions investing in renewable energy compare to fossil fuel investments?

Over 1000 financial institutions with assets over 11 trillion USD have started divesting from fossil fuel assets, and the global investment in renewable energy has consistently exceeded 200 billion USD per year, peaking at 325 billion USD in a single year.

What is the importance of Indonesia's commitment to mitigating global climate change?

Indonesia's commitment to mitigating global climate change is crucial for protecting its citizens from the impacts of climate change and must be realized seriously.

What is the target set by Indonesia for its Nationally Determined Contributions (NDCs)?

Indonesia has set a target to achieve its NDCs by 2036, but the current targets are not considered ambitious enough to meet the Paris Agreement goals.

What role can the Indonesian public play in supporting the energy transition?

The Indonesian public can play a significant role by urging the government to increase the adoption of renewable energy and supporting the national energy transition.

What steps can individuals take to utilize renewable energy technologies in their daily lives?

Individuals can start using renewable energy technologies such as rooftop solar panels to power their homes, offices, and other activities.