JAKARTA - PT Pertamina Energy Institute VP Pertamina, Hery Haerudin suggested transferring fuel subsidies to productive subsidies such as providing incentives for industries engaged in the renewable energy sector.
"It takes courage to invest in renewable energy which is still expensive. State policy support can be an incentive for EBT investment," said Hery, Tuesday, October 25.
Hery said the title of the article in the World Economy Forum (WEF) dated September 14, 2022, reads "Averting an energy crisis requires bold investment in renewable energy - partially in developing economies", saying that preventing an energy crisis requires a bold investment in renewable energy - especially in developing countries.
India, he said, is one of the most advanced developing countries in the development of renewable energy.
"In the WEF article, it is stated that renewable energy investment is important for investment institutions, companies and the government to avoid energy crises in the future and maintain climate change," he said.
In another report, Hery said the WEF stated that the amount of work absorbed in the EBT sector in the US reached 40 percent of employment in the energy sector.
In fact, according to a report by the International Energy Agency (IEA) the number of jobs in clean energy has reached more than half of the 65 million jobs available in the energy sector globally.
"Although the contribution of EBT in the energy mix is still relatively low, there is a great opportunity to achieve working hours in the renewable energy industry and low carbon. The opportunities for employment include carbon emissions management, basic industries, the oil and gas industry, electricity to the building and transportation industries," said Hery.
Hery added that the provision of incentives to the renewable energy industry needs to be realized in the form of developing reliable human resources for renewable energy.
Incentives to industries that invest in Indonesia are a kind of subsidy that will have a positive impact on the provision of jobs, downstreaming of natural resources and industrialization.
"Subsidies should be given to companies that are committed to technology transfer and intellectual capital development in Indonesia," he said.
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