Coordinating Ministry For Maritime Affairs: The Economy Is Hampered If The Republic Of Indonesia Does Not Carry Out An Energy Transition

JAKARTA - Deputy for Infrastructure and Transportation Coordination of the Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves) Rachmat Kaimuddin said Indonesia's economic promotion could be hampered if all sectors did not make an energy transition.

This, according to him, is because currently the domestic and international markets want products made of little carbon (CO2) emissions.

"If we do not carry out energy transitions in various sectors, this will threaten the progress of our own economic growth. Because currently the market is both domestic and of course international, we also want cleaner energy," said Rachmat as quoted by ANTARA, Thursday, August 22.

Rachmat explained that the economic slowdown could occur because later Indonesian-made products cannot compete in the international market, given the many trade barriers that will be applied to unfriendly products. "It could be that later our goods will be subject to carbon tax," he said. Therefore, according to him, realizing zero carbon emissions (Net Zero Emissions/NZE) will not only have a positive impact on the environment, but also accelerate economic acceleration to realize the vision of Indonesia Gold 2045. Rahmat said there are three things that must be reduced by Indonesia in order to realize a sustainable energy transition, among others, namely reducing the use of fossil energy for power generation, reducing fuel consumption for transportation, as well as reducing coal consumption in the industrial process. "So these things if we can solve, we are already 75 percent in completing our journey," he said. Indonesia targets reducing carbon emissions according to the Enhanced-Nationally Determined Contribution (E-NDC) in total from 29 percent or 835 million tons of CO2 to 32 percent or 912 million tons of CO2 by 2030.

To achieve this target, the government plans to generate electricity of 708 gigawatts, of which 96 percent comes from renewable energy power plants and the remaining 4 percent from nuclear power. The investment needed for the construction of power plants and transmission is estimated at 1.108 billion US dollars, with additional investments of 28.5 billion US dollars until 2060.