The Government Is Steadfast In Stopping New Steam Power Plant Construction

JAKARTA - The issuance of Presidential Regulation Number 112 of 2022 concerning the Acceleration of Renewable Energy Development for Electricity Supply, is a new regulation that strengthens the government's commitment to implementing the energy transition towards Net Zero Emission (NZE).

The Director General of New, Renewable Energy and Energy Conservation, Dadan Kusdiana said, although the naming of this Presidential Regulation is related to EBT, it contains special regulations that prioritize the development of EBT plants and stop steam power plants (PLTU).

"In this presidential regulation, it is clearly stated that Indonesia will not build new PLTUs, except those that are already included in the plan, except those that are included in the RUPTL, except those that have entered the National Strategic Project (PSN), which provide strategic and large economic contributions nationally. It is also tied in that within 10 years after the plant operates, Greenhouse Gas emissions must decrease by at least 35 percent," he said in a statement to the media, Monday, October 10.

The government, continued Dadan, will continue to strive to comply with Indonesia's commitments in the Paris Agreement, especially to achieve ambitious commitments.

The commitment in question is a commitment to reduce Greenhouse Gases (GHG) by 29 percent on its own or 41 percent with international assistance by 2030 according to Nationally Determined Contributions (NDCs).

Meanwhile, Net Zero Emission (NZE) in the energy sector is targeted to be achieved in 2060 or sooner.

"With the issuance of this Presidential Regulation, we have a regulation that supports the acceleration of NRE to be more comprehensive. A clearer price policy has been set by the President, which so far has been at the level of a Ministerial Regulation," added Dadan.

This Presidential Regulation is expected to be able to attract investment, especially green investment from power plants and other related matters, and can encourage an increase in the NRE mix.

"With more complete regulations, there are supporting industry investments that will eventually increase the Domestic Component Level (TKDN) by maintaining competitiveness and competition. With the availability of green power plants, it is hoped that it will encourage green industry, for industries that must utilize energy clean, we have a target of 23 percent by 2025," said Dadan.

Dadan revealed that the President's directives to the relevant ministries/institutions in accordance with their authority seek to strengthen regulations and program activities.

"We have synergized with other institutions and ministries to carry out rule improvement. The Ministry of Energy and Mineral Resources will proactively discuss and conduct discussions to prepare other regulations, which we will do in parallel," he explained.

He also expressed his highest appreciation to representatives of ministries/agencies who have been actively involved in the process of drafting Presidential Regulation No. 112 of 2022.

"This Presidential Regulation has undergone several changes in terms of substance. Previously, we wanted there to be a reference price for electricity to be purchased by PLN as a single offtaker. energy transition towards NZE," he concluded.