“Indonesia, as the president of the G20, and other G20 member countries have been committed to achieving net-zero emissions with a solid foundation to implement energy transition programs in their respective countries," Tasrif informed at a G20 webinar series entitled "Unlocking Innovative Financing Schemes and Islamic Finance,” which was accessed online from Jakarta on Wednesday.
Indonesia has designed an energy transition road map to achieve zero carbon emissions by 2060 or sooner with international support, he added.
Under the road map, the government is targeting to build 600 gigawatts (GW) of power plants that will work on new and renewable energy sources in various energy mixes, such as water, geothermal, and hydrogen, Tasrif noted.
In the short term, Indonesia's efforts to accelerate the shift to renewable energy will be realized via decarbonization through the conversion of diesel fuel into a clean power source for operating diesel power plants in remote areas.
"Currently, we are implementing a pilot project to reduce carbon. We are starting to convert fossil fuel vehicles into electric vehicles, using electric home appliances, as well as implementing repairs and early rejuvenation of power plants," the minister informed.
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Based on the road map of state-run electricity company PLN, in the period from 2021 to 2030, the company is targeting to add 51.6 percent of renewable energy power plants, equivalent to 21 GW.
Indonesia is also planning to build the Nusantara Supergrid to boost the development of renewable energy in order to maintain the stability and security of the electricity system.
The ESDM Ministry is also increasing the use of technology, including pumped storage, smart grids, digitization, green hydrogen, and carbon capture and storage.
As a form of support for the renewable energy road map, the government is also using mineral sources such as nickel calx, bauxite, and manganese to produce battery electric vehicles as well as to store renewable energy for power plants.
To support a fast and effective clean energy transition, Indonesia needs an investment of around US$1 trillion or Rp14.2 thousand trillion until 2060, the ESDM Ministry stated.
With this comprehensive strategy, it is hoped that Indonesia will be able to boost the market for renewable energy, Tasrif said.
"Therefore, Indonesia continues to strengthen cooperation with state partners and international financial institutions to find innovative funding mechanisms to meet the investment needs to support the energy transition," he added.
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Translator: M Baqir I A, Resinta S
Editor: Suharto
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