IESR Hopes That Energy Transition Commitment Will Be Strengthened During The Bahlil Leadership Era As Minister Of Energy And Mineral Resources

Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia. (Photo: Doc. Antara)

JAKARTA - Executive Director of the Institute Essential for Services Reform (IESR) Fabby Tumiwa hopes that the commitment to transition energy to net zero emissions (NZE) 2060 can be strengthened during the leadership of the Minister of Energy and Mineral Resources Bahlil Lahadalia who was sworn in this morning.

"The commitment to transition energy to net zero emissions (NZE) 2060 or earlier can be continued and efforts to achieve the 23 percent renewable energy target by 2025 will be strengthened during Bahlil Lahadalia's leadership as the new Minister of Energy and Mineral Resources," said Fabby in a written statement in Jakarta, quoted from Antara, Monday, August 19.

He added that Bahlil had several tasks that needed to be done, which included the implementation of the roadmap for the termination of the PLTU operation which was mandated in Presidential Decree No. 112/2022.

This roadmap, he continued, should have been prepared by the Ministry of Energy and Mineral Resources with the approval of the Ministry of Finance and the Ministry of SOEs, provided legal certainty for PT Perusahaan Listrik Negara (PLN) in implementing the PLTU early retirement program, including early retirement of PLTU Cirebon 1 in December 2035 with the Energy Transition Mechanism (ETM) scheme.

The IESR study shows that all PLTUs must be stopped in stages before 2045, and 80 percent of them must be stopped before 2040 to align with the goal of limiting global warming by 1.5 degrees Celsius according to the Paris Agreement. This step will accelerate the penetration of renewable energy which must reach 40 percent in the primary energy mix by 2030," said Fabby.

He also said the importance of accelerating the use of renewable energy to reach 23 percent by 2025. This is because the renewable energy mix is only around 13.09 percent in 2023, and is still far from the target by 2025.

He also hopes that Bahlil needs to ensure that PLN is committed to increasing its renewable energy capacity in the 2024 RUPTL and encouraging power steering to be included in the draft EBET Bill.

As well as ensuring the implementation of a fair energy transition (JETP) partnership can run as planned, by prioritizing the preparation of a list of well-funded renewable energy projects and policy reforms that have been hindering investment in renewable energy.

"Minister Bahli needs to guarantee that the Indonesian government will not back down from its energy transition commitment to maintain the trust of partner countries in supporting the energy transition in Indonesia," he concluded.