The government, business players and the people must be pushed to switch to using clean energy in their economic activities.
By
·3 minutes read
JAKARTA, KOMPAS — The use of clean energy for industrial and daily activities is believed to be able to accelerate economic growth more than the use of non-environmentally friendly energy. The government, business players and the people must be pushed to switch to using clean energy in their economic activities.
The Low Carbon Development Indonesia (LCDI) report released by the National Development Planning Agency (Bappenas) stated that Indonesia could reach a higher level of economic development by using energy with low carbon emissions, aka clean energy, in economic activities.
Bappenas’ analysis found that Indonesia’s economic growth without a clean energy policy (business as usual) would be 5 percent in 2024 and 4.3 percent in 2045. Meanwhile, by adopting an LCDI High scenario, economic growth would reach 5.6 percent in 2024 and 6 percent in 2045. Adopting an LCDI High scenario means using clean energy at a maximum level in industrial, economic and daily activities.
This was delivered at the “NDC and 2020-2024 National Mid-Term Development Plan Road Map” discussion held by the Institute for Essential Services Reform (IESR) in Jakarta on Thursday (17/10/2019). Speaking at the event were Bappenas energy, telecommunication and informatics directorate functional staff Mohammad Asrofi, IESR energy researcher Deon Arinaldo and World Resources Institute Indonesia climate research analyst Cynthia Maharani.
Efficiency
Deon said that the use of clean energy would boost efficiency in businesses. Through calculations, this would lead to accelerated economic growth in the long term.
Separately, IESR executive director Fabby Tumiwa said that the use of clean energy would boost efficiency in various economic activities. Results of this efficiency can be used for more productive economic activities. The state can save foreign exchange as clean energy would decrease government subsidies for fossil energy.
Furthermore, the new and renewable energy sector would require huge investments. In line with Presidential Regulation No. 22/2017 on a National Energy General Plan, Indonesia plans to have a 23-percent new and renewable energy mix, namely energy produced by wind, water, sun and other sources, by 2025. Currently, the renewable energy mix is only 13 percent.
IESR calculations show that an investment of between US$70 billion and $80 billion would be needed to meet the target in 2025.
The investment includes the development and construction of wind, hydro and solar power plants. Investments would also be used for increasing the capacity of production engines from using fossil energy to new and renewable energy.
The use of clean energy must also be encouraged as Indonesia is committed to contributing to decreasing greenhouse gas emissions. Cynthia said that bigger efforts from the government would be necessary to reduce gas exhaust. “The issue about reducing exhaust gas emissions exists not only under one ministry but across several ministries,” she said. (BKY)