JAKARTA - Secretary General of the Ministry of Energy and Mineral Resources, Rida Mulyana, revealed the government's steps in achieving the Net Zero Emission (NZE) target or carbon neutrality by 2030.
Rida also said that the Government will develop 700 Giga Watt (GW) of renewable energy originating from diesel, hydro, wind, bioenergy, law, geothermal, and hydrogen and nuclear.
There is also a strategy to gradually stop the Batubara PLTU. The Batubara PLTU will be terminated in a maximum of 2058. In addition, Indonesia also plans to build a Super Grid to maintain the electricity system, and open up opportunities to export electricity to ASEAN countries connected to the ASEAN Power Grid.
"To support a fast and effective transition to clean energy, Indonesia requires an investment of up to 1 trillion US dollars by 2060 for renewable energy plants worth US $ 995 billion and transmission of US $ 114 billion. The need for financial support will increase as we implement early retirement of the Batubara PLTU in the years to come," Rida said in a statement to the media, Saturday, October 15.
Currently, the funding landscape for renewable energy development in Indonesia can be obtained, among others, from the Blended Finance, United Indonesia SDGs, Tropical Landscape Financial Facilities, Non-Government Budget Investments, and the Government and Private Partnerships.
However, the government still has to increase the mobilization of all financial sources and strengthen collaboration among all stakeholders to ensure all potential is utilized.
"To provide better and conducive renewable energy investment, the Government has set a Presidential Regulation on the Acceleration of Renewable Energy Development for Electrical Supply which allows competitive prices for renewable energy through transparency of procurement mechanisms and provision of government support from the relevant ministries. In addition, we also provide incentives such as tax allowances, import duty facilities and tax holidays," said Rida.
For information, in the long term, Indonesia targets to achieve NZE by 2060 or sooner through a strategy that is in line with the G20 commitment, including in terms of supply, through massive development of new and renewable energy, reducing the use of fossil energy by converting primary energy from fossil fuels to renewable energy such as de-dieselized programs, gradual cessation of fossil power plants and utilization of low-emission technology.
On the demand side, through the utilization of electric stoves, Electric Vehicle Battery (BEV), biofuels, city gas, the implementation of energy management and the implementation of Minimum Energy Performance Standards.
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