A Number Of Homeworks That Must Be Completed By Bahlil As Minister Of Energy And Mineral Resources

Center of Economics and Law Studies (Celios) economist Bhima Yudhistira (right). (Photo: Theresia Agatha/VOI)

JAKARTA - President Joko Widodo (Jokowi) officially inaugurated Bahlil Lahadalia replacing Arifin Tasrif as Minister of Energy and Mineral Resources (ESDM) at the State Palace, Monday, August 19.

Previously, Bahlil served as Minister of Investment/Head of the Investment Coordinating Board (BKPM).

Director of the Center of Economic and Law Studies (CELIOS), Bhima Yudhistira said, there is a lot of homework (PR) that Bahlil must complete as Minister of Energy and Mineral Resources to replace Arifin Tasrif's position.

The homework that must be completed is to accelerate the transition of energy to renewable energy, either through the Just Energy Transition Partnership (JETP) scheme or direct support from the ESDM electricity policy and the State Revenue and Expenditure Budget (APBN).

In addition, Bhima said that Bahlil must also increase the number of coal steam power plants (PLTU) that have been retired, including PLTUs that are operated and used outside the electricity network by industry players (Captive), and need to revise Presidential Regulation (Perpres) Number 112 of 2022 concerning Acceleration of Renewable Energy Development for the Provision of Electricity.

"Adding the number of Coal PLTUs that can be retired, including PLTU captive in industrial areas. Revision of Presidential Regulation 112/2022 which still allows the construction of PLTU for new industrial areas also needs to be revised. It is estimated that there are 21 GW PLTU industrial areas that want to be built and hinder Indonesia's efforts to achieve the carbon emission target," he explained in his statement, Monday, August 19.

Bhima added that Bahlil must also revise the number of obligations to fulfill the domestic market (DMO).

This needs to be done to accelerate the energy transition to renewable energy (EBT), as well as mitigate the risk of dependence on fossil fuels, especially in power plants.

"Together with the Ministry of Finance, it is necessary to discuss the revision of the Coal DMO which poses a risk of dependence on fossil fuels, especially in power plants," he said.

According to him, Bahlil must also facilitate community-based energy to use PLN's transmission, and sell a clean energy electricity surplus to PLN and encourage coal production tax, and evaluate tax incentives for nickel smelters that are not yet in line with environmental responsibility (ESG).