Waiting for Indonesia’s Leadership Role in Energy Transition
People are awaiting for the government’s concrete action in renewable energy transition as part of the pledged commitment in Indonesia’s G20 presidency.
By
LARASWATI ARIADNE ANWAR
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KOMPAS/IWAN SETIYAWAN (SET)
Operators monitor the performance of the generator in the control room of the Cirata Hydroelectric Power Plant (PLTA) in Purwakarta Regency, West Java, on Thursday (23/9/2021).
BADUNG, KOMPAS - The accompanying activities held in the lead up to the G20 Summit have so far gone smoothly. However, Indonesia will have to show commitment to the drawn-up agenda for actions to prove to the world it is not simply a good event organizer ceremonially. One of them is that Indonesia must play a leading role among developing and Asian countries on the issue of transition from fossil to renewable energy.
During the inauguration of the Business 20 (B20) forum, which was attended by representatives from business and industry, on Friday (11/11/2022) in Nusa Dua, Badung, the industrial sector was urged to pursue decarbonization. Indonesia is looking to reduce 31.8 percent of emissions on its own efforts and 43 percent with financial assistance and technology, especially from developed countries by 2030. As many as 50 companies signed up their commitment to zero carbon achievement.
Civil society engaging in green environment campaigns is now awaiting concrete actions. Among the aspects deserving further scrutiny is what Coordinating Maritime Affairs and Investment Minister Luhut Binsar Pandjaitan stated during a discussion with United States Finance Minister Janet Yellen. With Indonesia producing 2.3 million tons of emissions per capita each year, compared to while the US 14.7 million tons, Luhut suggested that Indonesia increase while the US reduce the amount of emissions and at the same time. Once they reach the same level of emissions, he said, the two countries will reduce it simultaneously.
"His statements suggest as if Indonesia is not serious about emission reduction. Developing countries and Asia have high hopes on Indonesia because of its presidency in the forum of the world's 20 largest economies," Adila Isfandiari, energy expert for Greenpeace Indonesia and Southeast Asia, said when contacted on Saturday (12/11/2022). She said if Indonesia was not serious, other countries might hold back from the climate change mitigation efforts and that global zero-carbon target would be difficult to achieve.
Adila said Indonesia’s transition scheme for renewable energy was not yet clear, which resulted in the people failing to draw up clear perception over the policy. As the consequences, she said, the policy has received opposition, especially from the community members who live in regions and whose livelihoods rely on the exploitation and processing of fossil energy and its derivatives. She pointed out the need to comply with the principles of energy transition, saying that its the implementation should be gradual, just, transparent and sustainable so as not to marginalize society. She said it would necessary for the government to make the communities more prepared for the shift in livelihood sources in the face of the phasing out of fossil energy.
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Adila further said that climate change mitigation was part of Indonesia's economic development. The European Union has prepared a carbon tax that will be implemented from 2026. All commodities exported from countries with high carbon emissions or do not yet have a transition system to renewable energy will be subject to additional taxes.
In the Southeast Asian region, Vietnam has reportedly started the process of switching to renewable energy. Data at the United Nations Commission for the Asia Pacific Economic and Social Affairs (UN ESCAP) shows Vietnam produced up to 16 gigawatts of renewable energy in the form of solar energy in 2021. Greenpeace has hailed it an achievement given the fact that Vietnam realized it within five years. In 2012, the country’s production of solar energy was reported at 4 megawatts.
"This will pose serious competition in the region. Foreign companies in Indonesia may relocate investment to Vietnam, which complies with international regulations over incentives and the transition to renewable energy," Alida said.
For a country like Tuvalu, the impact of carbon emissions is real now. The world must help each other, otherwise we will lose our homeland.
She warned against the commitment to renewable energy transition being followed up with what she called “artificial solution”. She was referring to the idea of using liquefied coal, gasified coal, or coal-fired biomass in coal-fired steam power plants. She said these three substituting methods would not reduce the emission from the use of fossil energy.
Industrial aspect in green energy transition apart, carbon emissions result in climate change in the form of extreme weather. Data at Wathe National Disaster Mitigation Agency (BNPB) shows that out of the 3,090 natural disasters that have occurred, 90 percent was related to extreme weather. The National Development Planning Agency (BPPN) has estimated the state losses for the 2020-2024 period due to the climate crisis to reach Rp 544 trillion.
In small island countries like Tuvalu, they experience increasingly high sea levels every year. At the 27th Summit on Climate Change in Egypt, Tuvalu Prime Minister Kausea Natano pushed ahead with the idea of a cessation of fossil energy. "For a country like Tuvalu, the impact of carbon emissions is real now. The world must help each other, otherwise we will lose our homeland," he was quoted by CNBC as saying.
