If we do not make a transition, our industry will be subject to a carbon tax, which makes products uncompetitive and factories are required to stop their production
Jakarta (ANTARA) - The government will continually encourage the energy transition program through transition of fossil energy to new and renewable energy to prepare a competitive green industry in future, Energy and Mineral Resources Minister Arifin Tasrif stated.

Moreover, Tasrif pointed out that several countries had declared carbon neutrality, thereby necessitating Indonesia to adjust with the changes in an effort to avoid carbon tax sanctions for domestic products.

"If we do not make a transition, our industry will be subject to a carbon tax, which makes products uncompetitive and factories are required to stop their production," Tasrif noted in a press statement on Monday.

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The minister later remarked that the Indonesian government had set a target for achieving carbon neutrality by 2060, and several countries were focused on achieving that goal by 2050, while some countries were determined to attain the target by 2070.

The minister remarked that the achievement target was adjusted in line with the conditions of each country and how all countries in the world could work together and collaborate to be able to accelerate these programs.

In Indonesia's energy transition roadmap, the government is committed to achieving a 23-percent share of new and renewable energy in the national energy mix by 2025. By the end of 2021, the energy mix of new and renewable energy in the country had reached around 11.7 percent, Tasrif noted.

After 2030, additional power generation will be coming only from the generation of new and renewable energy. Starting in 2035, power generation will be dominated by variable renewable energy in the form of solar power followed by wind and ocean currents in the following year.

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The minister stated that hydrogen will also be used gradually starting in 2031 and on a massive scale in 2051. Thereafter, nuclear power plants will enter the generation system starting in 2049.

In an effort to achieve the new renewable energy mix target, the Ministry of Energy and Mineral Resources has issued regulations related to solar power plants (PLTS) and targets an additional 3.6 gigawatts of PLTS to be installed by 2025.

The government ensures that the economy will continue to grow despite Indonesia facing challenges related to energy transition that demands the use of clean energy and modern technology in the industrial, transportation, and power generation sectors.

"We must be able to create a program that ensures this transition will bring benefits, not a burden. This energy transition holds potential for driving new economic growth as well," Tasrif concluded.

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Translator: Sugiharto Purnama, Resinta S
Editor: Fardah Assegaf
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