Expert: Coal Energy Transition Policy Needs Community Involvement

JAKARTA - Energy Policy Analyst at the International Institute of Sustainable Development (IISD) Anissa Suharsono said that the preparation of coal energy transition policies needs to involve the community.

"Getting funding for energy infrastructure projects is easier, because there is an investment profit prospect, but the different cases get funding for people affected by the coal transition, because social projects like this cannot be calculated in the same way as infrastructure projects," said Anissa, quoted from Antara, Tuesday, August 1.

IISD held a discussion on launching the implementation of the sustainable energy transition funding policy or Just Energy Transition Partnership (JETP), namely a financing mechanism that supports the energy transition of developing countries which so far has a high dependence on coal and fossil fuels towards low-carbon emissions.

Anissa explained that JETP was launched at the G20 Tingi Level Conference (KTT) which was held in November 2022, which resulted in a commitment in the form of mobilizing funds of US$20 billion or around Rp. 311 trillion in the next 3-5 years to accelerate Indonesia's energy transition in supporting renewable energy.

"Because this JETP has been running in South Africa for approximately a year, and we both have dependence on the stones, we need to evaluate it, because the JETP process in South Africa has received a lot of criticism regarding the lack of public involvement and representatives of the affected communities during policy formulation," said Anissa.

According to him, issues such as access to energy price affordability have not been accommodated in the focus of the JETP area in South Africa.

He explained, there are six steps that can help ensure the successful implementation of JETP in Indonesia. First, there needs to be attention that infrastructure projects such as electricity networks will be delayed for some time, the second is to formulate a strong energy policy to reduce the use of coal.

Third, focus on JETP's social impact by prioritizing the social benefits of employment projects, supporting the regional economy, and using the best resources.

Fourth, namely taking advantage of the JETP investment plan opportunity to attract private investment, fifth, prioritizing the achievement of consensus in all parts of the government for risk mitigation and ensuring the implementation of JETP runs smoothly, and sixth, translating JETP commitments into legislative products.

Previously, the Director General (Dirjen) of New Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources (ESDM) Dadan Kusdiana said that his party was trying to secure financing with the Just Energy Transition Partnership (JETP) scheme to assist Indonesia in energy transition.

"We are fighting for 20 billion US dollars to be safe with commitment, but the implementation must be convincing, because basically this (JETP) is commercial," said Dadan.