COORDINATING MINISTRY FOR ECONOMIC AFFAIRS

REPUBLIC OF INDONESIA

PRESS RELEASE
HM.4.6/24/SET.M.EKON.3/01/2023

Anticipating the Energy Crisis and Striving for Energy Independence, the Government Increases the New and Renewable Energy Mix

Jakarta, January 24th, 2023

Indonesia has carried out the energy transition as one of the efforts to maintain energy security and raise of green economy in Indonesia. During the G20 Presidency event last year, the Government also produced a number of financing and investment collaborations in the energy sector. This can be seen from the cooperation Partnership for Global Infrastructure and Investment, Asia Zero Emission Community (AZEC), Just Energy Transition Partnership (JETP), and Millennium Challenge Corporation (MCC) Compact.

"The energy transition is an effort as well as the Government's commitment to anticipate future energy crises, and the Government has increased the mix of New and Renewable Energy (EBT) sources by 23% in 2025, up to 31% in 2030," said the Coordinating Minister for Economic Affairs Airlangga Hartarto who attended virtually from the Office of the Coordinating Ministry for Economic Affairs in the Kompas Daily Discussion Room event, Tuesday (24/01).

Coordinating Minister Airlangga also said that the Government continues to push for various policies in the energy sector, one of which is biodiesel B35 which will be implemented in February. Until mid-2022, it was recorded that the capacity of EBT power plants had reached 2,576 megawatts, or an increase of around 5% per year in the last five years. This effort still needs to be accelerated together with other efforts in the energy transition, such as the transition from PLTU to non-fossil PLT.

The large number of lakes and seas in Indonesia is also an advantage for Indonesia in the hydro-based energy transition because the cost of acquiring land in lakes and seas is much cheaper than acquiring land on land. “Our transition is the most immediate and technology reinforcement, “said the Coordinating Minister Airlangga.

In the question and answer session, the Coordinating Minister Airlangga said that Indonesia's independence in the energy sector depends on dependency on energy in the automotive sector, namely fuel. "So, as long as we can convert some of the fuel through biodiesel, and the other in combination with electric vehicles, then of course the goal of energy independence can be achieved," said the Coordinating Minister Airlangga.

Furthermore, the Coordinating Minister Airlangga explained that the challenges in energy transition efforts are shared challenges between the Central and Regional Governments. The momentum of Indonesia's chairmanship in ASEAN this year also needs to be utilized to jointly push for opportunities in the energy sector to strengthen the regional economy which is growing fast, inclusive and sustainable.

“This Renewable energy will be successful if we work together," concluded the Coordinating Minister Airlangga. (ltg/dlt/fsr)

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Head of Bureau of Communications, Information Services, and Meetings
Coordinating Ministry for Economic Affairs of the Republic of Indonesia
Haryo Limanseto

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