August always brings feelings of joy and excitement for most Indonesians. As Independence Day approaches, everyone is rushing to raise the red-and-white national flag at the top of the flagpole. The majority of Indonesians celebrate in unique and diverse ways. Competitions and games are the most common ways, while others wear their traditional attire to represent their cultural values. To commemorate the end of the colonization period, celebrations are held in streets, public spaces, and even in densely populated narrow alleys. However, over the past few years, I have learned the value of Independence Day in my own way. As a large nation with an abundance of natural resources and demographic growth, we are still lagging behind the definition of ‘independence’ after 78 years. I would rather celebrate the vibrant spirit of Independence Day by revisiting our progress in the energy sector and gauging our nation’s development. This writing is also part of my reflection on how I portray Independence Day.
Indonesia has set the goal of becoming the top global economy by pursuing a green economy as the strategy to realizing Indonesia’s big dream by 2045, which marks the country’s 100th anniversary. As the deadline approaches, the issue of energy poverty has emerged as one of the most frequent challenges for developing countries, as identified by the IEA in two aspects: 1) Inadequate electricity access 2) Availability of clean cooking facilities. One study found that low-income families spend more than half of their income on energy and have limited access to modern cooking fuels. Despite the fact that it is already mandated under Indonesia’s Energy Law No. 30/2007, progress appears to have been slow in recent years. This has been going on for a long time in low-electrification areas of Indonesia, such as East Nusa Tenggara and Papua. It is such a disappointing situation that our country has not fulfilled critical and basic public needs, implying that we have not achieved our independence as a nation.
Aside from that, fossil fuels have been a major player in the Indonesian energy market, with a significant amount of the country’s economy reliant on coal extraction and export. Our chronic reliance on fossil fuels may lead to a larger economic and societal challenge in the future. A good movement has been made through Presidential Regulation No. 112/2022 to advance renewable energy by halting coal power plant project pipelines beginning early this year. This must be recognized; nonetheless, transitional impacts will arise on the surface. The shift must be handled with extreme caution, particularly in regions whose economies rely on the use and production of fossil fuels. The socio-economic issues must be fully handled to prevent inequality, major job losses, and economic shocks in areas where fossil fuel industries are vital to local economies.
In light of the given cases, funding is a key method for speeding the energy transition and resolving development-related issues. A significant amount of investment is required to compensate for potential economic losses and establish new local economic sectors while building renewable energy infrastructure in isolated regions. Considering the state budget is insufficient, additional funds from private and public investors are required to seed the project in the beginning. The Just Energy Transition Partnership (JETP) has come to fill the financial vacuum as a new form of climate investment. It is hoped that the initial USD 20 billion will catalyze renewables deployment in Indonesia and make renewables more affordable, thereby addressing energy poverty issues using ‘just transition’ principles. Even though the most anticipated JETP document has been delayed for public review and was intended to be released one day prior to Independence Day, the greatest wish is still to be ‘free’ from fossil fuels.
In conclusion, commemorating Indonesia’s recent independence day through introspection on recent government policies and our actions is my personal way of reminding myself that we are still far from achieving my own definition of independence. While challenges related to energy poverty and fossil fuel reliance persist, one of the remarkable opportunities presented by the clean energy transition is the potential to address energy poverty directly.
By harnessing all its good resources, implementing forward-thinking policies, and fostering a collective commitment to sustainability, Indonesia can illuminate a new path—one that leads to a cleaner, more prosperous, and more inclusive future for all its citizens. As the nation stands at the crossroads of history, the choices made today will undoubtedly shape the legacy it leaves for generations to come.
