IESR: Indonesia Allows Clean Electricity In Rural Areas And 3T

JAKARTA - The Institute for Essential Services Reform (IESR) assesses that the Indonesian government is very possible to provide clean and affordable electricity in rural areas and disadvantaged, frontier, and outermost (3T) areas, considering that the potential for renewable energy (EBT) owned is quite large.

"Providing electricity and reliable, affordable and clean in rural areas and 3T is very possible by utilizing the potential of local renewable energy to replace the 3 gigawatts of scattered diesel power plants. With this in addition to accessing electricity, it is more equitable, reducing emissions and the cost of providing electricity can occur," said IESR Executive Director Fabby Tumiwa in a statement in Jakarta, quoted from Antara, Monday, November 25.

He conveyed, according to the Ministry of Energy and Mineral Resources, the potential for renewable energy in Indonesia reached 3,686 gigawatts. Even his study in 2022 indicated that there was a greater potential for renewable energy, reaching more than 7,800 gigawatts, with more than 75 percent being a source of solar energy.

Therefore, he said the Indonesian government needed to prepare an energy transition roadmap with the cheapest choice of costs, ensuring optimal and fair supply reliability.

According to Fabby, through the renewable energy transition, Indonesia can increase its ambition to reduce greenhouse gas (GHG) emissions in line with the 1.5 degree Celsius target targeted by the Paris Agreement.

Furthermore, Deputy for Facilities and Infrastructure, Ministry of National Development Planning/Bappenas Ervan Maksum said that to achieve the energy transition target, you cannot only rely on financing from the State Revenue and Expenditure Budget (APBN) or the Regional Revenue and Expenditure Budget (APBD).

Energy transitions in Indonesia require alternative financing from non-governmental sources, and the involvement of private capital to achieve targets in the electricity sector.

On the other hand, the Director of Electricity, Telecommunications and Information Technology, the Ministry of National Development Planning/Bappenas, Taufiq Hidayat Putra stated that the electricity sector planning in Indonesia includes quality access to electricity, not only to industry, but also to all levels of society, especially in villages.

Meanwhile, to increase the appeal for investors, Project Lead Clean, Affordable and Secure Energy for Southeast Asia (CASE for SEA) in Indonesia, GIZ Energy Program for Indonesia / ASEAN Deni Gumilang underlined the importance of developing policy instruments aimed at mitigating transaction risks, considering that challenges in policies and regulations are still considered as the main obstacle in developing renewable energy in the country.

As for data from the Ministry of Energy and Mineral Resources until November 2024, it shows that there are still around 86 villages that do not yet have access to electricity.