Director Of PWYP: The State Must Pay Attention To Supply Chain For The Capai Of Energy Transition

Indonesian Publish What You Pay (PWYP) National Coordinator Aryanto Nugroho. (Screenshot)

JAKARTA - The issue of the energy transition has become one of the main discussions on a national and global scale in the last two years.

His discussion was even included in the G20 Summit in Bali, last November.

As a result, several member state agreement documents show a commitment towards an energy transition, namely the G20 Chairs Summary Energy Transitions Minister Meeting 2022 and Decade of Actions: Bali Energy Transitions Roadmap.

Indonesia's Publish What You Pay National Coordinator (PWYP) Aryanto Nugroho said, in the G20 State Agreement document, it is necessary to pay attention to a number of things in the application to the energy transition.

"We are trying (to see) the G20 results documents carried out throughout the G20, meeting the term mineral supply chain in the G20 Chairs Summary Energy Transitions Minister Meeting 2022. This is an agreement and commitment to find solutions for energy security by strengthening supply chain, including minerals," Aryanto said in the Webinar on the Transition Energy to Justice in the Mineral Value Chain Policy in Indonesia online, Wednesday, December 21.

He said, in encouraging clean energy or new renewable energy (EBT), the supply chain must be secured because the world needs it.

The shift in the use of coal into minerals makes the need for minerals increase, so it is important for every country to maintain its supply.

"For example, nickel for clean energy, battery, in Indonesia, the effort to immediately produce electric cars is extraordinary. Supply chain is important for discussion," said Aryanto.

Aryanto emphasized that the need for minerals for clean energy technology must also pay attention to the process towards that direction.

This means that resource extraction such as nickel should not be at odds with the purpose of climate goals itself.

According to him, the goal of climate change and sustainable development must remain the main goal, so that the process does not go against the goal itself.

"Because of the need for batteries, electric cars, (the state) will extract extraordinary nickel so that it is opposite. Investment is not green, the implementation of operations is also far from the principle of sustainable development. Is this fair enough for regions like Indonesia that have extraordinary nickel resources? This must be in line with sustainable development," he explained.

The implementation of the energy transition, said Aryanto, needs to be carefully considered.

"Preparations in Indonesia must be taken seriously so that the results do not go against the goal of using clean energy," he added.

In addition, said Ary, the application of ESG standards is also needed in the energy transition process.

This is a concern and reflection towards clean energy, so that the company can apply it when carrying out its operations.

"ESG as a standard social environment, is encouraged in the operational context of companies that carry out mineral extrasion. What is expected from the G20, the company refers to ESG standards," he concluded.