Source : Kontan.co.id | 26 May 2024

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif reiterated Indonesia’s commitment to reducing Green House Gas (GHG) emissions in the Nikkei Forum Future of Asia Agenda.

Arifin said, Indonesia is committed to reducing GHG emissions and achieving Net Zero Emissions (NZE) based on national conditions and capabilities in 2060 or 2070s.

“Indonesia has issued Enhanced National Determined Contribution (ENDC) which will further reduce emissions in the energy sector,” said Arifin, quoted from a press release, Sunday (26/5).

Apart from ENDC, the Ministry of Energy and Mineral Resources has developed an NZE Roadmap for the energy sector to achieve emission reduction targets and implement the clean energy transition.

“This Roadmap consists of developing renewable energy, carbon reduction programs, early retirement of Steam Power Plants (PLTU), electrification, energy efficiency, as well as CCS/CCUS,” he explained.

In achieving the NZE target and implementing the Road Map, Arifin admitted that his party still faced various challenges. Arifin said that Indonesia has various energy sources, both hydrocarbon-based and clean renewable energy.

“Indonesia is blessed with hydrocarbon-based energy such as oil, natural gas and coal, and renewable energy, namely hydro, geothermal, solar, wind and bioenergy. But the question now is how to use it,” said Arifin.

Arifin then explained that there had been several programs implemented, such as the construction of electricity interconnection infrastructure, natural gas infrastructure, massive natural gas exploration, phase down program for PLTU, Rooftop and Floating PLTS, development of PLTP and PLTA, electric vehicle ecosystem, and pilot projects CCS/CCUS is targeted to operate in 2030.

Regarding financing efforts, there are already several initiatives, namely JETP, AZEC, and IPEP which are currently underway. However, Arifin added, further financial support is still needed to accelerate the achievement of NZE.

“Apart from that, technological development on an industrial scale needs to be accelerated and made easier to maximize the use of renewable energy. Indonesia is expanding its downstream mineral processing industry to build an ecosystem and supply chain that supports the energy transition, as well as creating new jobs,” he added.

Indonesia also encourages downstream mineral mining commodities that support the development of a new and renewable energy ecosystem.

“In the mineral mining sector, we support the downstreaming of mineral commodities which can support the development of the EBT ecosystem and the energy transition,” he said.

In addition, the transition to electric vehicles is seen as a key strategy for decarbonizing road transport, offering the dual benefit of reducing emissions while supporting the decarbonization of the electricity sector.

“The transportation sector will be the target of reducing emissions, especially with the increasing use of transportation. We no longer want to increase emissions in our atmosphere,” he stressed. At the end of the session, Arifin said that the clean energy transition program must have a positive impact on society.