Indonesia Government in Pursuing Renewable Energy Target

To accelerate the transition of using clean and renewable energy in Indonesia, the government is cooperating with various parties for the development of solar energy.

Chrisnawan Anditya, Director of Various New and Renewable Energy at the Ministry of Energy and Mineral Resources (MEMR), said that Indonesia is committed to achieving its aim to have 23% of Indonesia’s energy coming from renewable sources by 2025, in line with the targets set out in the National Energy Policy (KEN) and the Paris Agreement.

“Synergy is needed not only from the government but also from other parties to create a solid ecosystem to achieve the 23% renewable energy target by 2025. It is hoped that in the future, Indonesia will be more ambitious towards net zero emissions target like other developed countries,” said Chrisnawan in SUN Energy’s webinar discussing Sustainable Development Goals on June 3rd, 2021.

The potential use of renewable energy, especially solar energy, is continually growing in Indonesia. In March 2021, Chrisnawan said that there were 3,472 customers who had installed solar rooftops nation-wide, with a total installed capacity of 26.51 Megawatt.

“One of the efforts to produce global products with the Renewable Energy Based Industrial Development (REBID) scheme is to scale up renewable energy use in the green industry,” he said.

Hendro Martono, Head of the Center for Green Industry from Indonesia’s Ministry of Industry, said the industrial sector is one of the largest energy consumers. In 2019, the total energy consumption from the Indonesian industrial sector was 2,382,594 terajoules or equivalent to 36.64% of the total national energy consumption.

“The annual potential of solar energy in Indonesia is 532.6 GWp and the national production capacity is 515 MWp. However, the total capacity of solar rooftop in Indonesia is only 25 MWp,” Hendro added.

Hendro said that one of the challenges for the domestic industry is the import of solar panel components. To support the domestic production solar panel components, there is a policy regarding import fees that can be borne by the government. Applications can be submitted to the Ministry of Industry to overcome the relatively high import costs.

Anggita Pradipta, Head of Marketing at SUN Energy, affirmed that the government is committed to strengthening solar energy as the main channel for implementing clean and affordable energy. Currently there are already some government policies which promote the use of solar energy for housing, offices, and factories in industrial areas.

“Many industries are willing to participate to accelerate clean energy use for their industries. SUN Energy provides this type of solution for solar system installation in industries without any upfront cost,” said Anggita.

“This will help the industry to save more costs. Besides creating a green environment in industrial areas, solar system installations can lower electricity bills by up to 10% – 30%,” she said.

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