Energy Transition Becomes A Priority Issue In Indonesia's G20 Presidency

JAKARTA - The transition to sustainable energy is one of the priority issues at the 2022 G20 Indonesia Presidency, in addition to two other topics, namely the World Health System and Economic and Digital Transformation.

"The G20 is expected to reach a mutual agreement in accelerating the global energy transition, as well as strengthening a sustainable global energy system and a just transition," said Expert Staff to the Minister of Energy and Mineral Resources (ESDM) for Strategic Planning Yudo Dwinanda Priaadi, quoted on Friday, January 7.

He said, through this forum, Indonesia had the opportunity to encourage the world's collective efforts in realizing policies to accelerate global economic recovery in an inclusive manner. Indonesia also has the opportunity to show the world its full support for the global energy transition.

G20 member countries account for about 75 percent of global energy demand. Therefore, the G20 countries have a big responsibility and strategic role in encouraging the use of clean energy. The Energy Transitions Working Group (ETWG) focuses on energy security, access and efficiency, and the transition to low-carbon energy systems, as well as investment and innovation in cleaner and more efficient technologies.

The Indonesian government has also committed to accelerating the energy transition. In addition to setting a target for the energy mix from New and Renewable Energy (EBT) of 23 percent by 2025, President Joko Widodo also emphasized Indonesia's commitment to fulfilling Net Zero Emissions (NZE) by 2060 or sooner. Previously, Minister of Energy and Mineral Resources Arifin Tasrif said that the energy transition must be able to create environmentally friendly sustainable development. Various steps have been taken by the Ministry of Energy and Mineral Resources to pave the way towards the green target. One of them is reducing and eliminating the use of Steam Power Plants (PLTU).

"This energy transition is very important for Indonesia. Moreover, we can convince the public that this process can create a better future. Whether we face out (eliminate) or face down (reduce) PLTU, the transition will come soon," said Arifin.

In addition, the Government will also apply a carbon tax at a rate of Rp. 30 per kg of CO2e carbon. This tariff will come into effect on April 1, 2022 for Steam Power Plants (PLTU) with a cap and tax scheme.

From the oil and gas sub-sector, the Government has prepared other strategies to reduce carbon emissions, namely the plan to implement Carbon Capture, Utilization and Storage (CCUS) to reduce carbon emissions while increasing oil and gas production, limiting routine flaring, optimizing the use of natural gas for households and transportation, and reduced methane emissions.