The global temperature has risen by at least 1.39°C since 1880, marking a significant increase since the onset of the industrial revolution. Despite the commitments made in the 2015 Paris Agreement, which aimed to limit the temperature increase to 1.24°C, temperatures continue to rise year after year. In July 2023, a new record was set for the hottest month of the year, prompting UN Secretary General, Antonio Guterres, to declare that we are entering the era of global boiling. While there have been global visions, pledges, and commitments to address this phenomenon, it seems that our Earth is bearing the brunt of our inaction.
In the context of Indonesia, the Paris agreement has been ratified and translated into various actions, including a target of 23% of the renewable mix by 2025, the Green National Electricity Supply Business Plan (RUPTL) 2021–2030, an enhanced NDC, and specific policies aimed at limiting emissions. Let’s focus on the renewable energy (RE) target by 2025, which currently stands at only 12.6% with just a year and a half remaining. Regardless of the reasons, it’s evident that progress has been slow, with less than 1% progress from 2021 until 2022, leading to growing trust issues with the government.
To achieve the enhanced NDC targets, Indonesia is set to decrease 43.2% of emissions with international assistance. The country received financial funding commitments from International Partners Group (IPG), led by the United States and Japan and including Canada, Denmark, the European Union, France, Germany, Italy, Norway, and the United Kingdom, as well as the Glasgow Financial Alliance for Net Zero (GFANZ), with a total of USD 20 million under the JETP Program. The schedule of the Comprehensive Investment and Policy Plan (CIPP) was initially scheduled for 16th August but has been postponed to at least the end of 2023 for refining formulas and calculations. Once again, it had been to at least the end of 2023. With some particular reasons to refine the formula, calculation, public hearing, and other necessary steps, revealing the challenges ahead.
Beyond questionable commitments, global climate change is an undeniable reality, affecting regions across the world. Conditions are deteriorating from summer to winter and vice versa, leaving little room for reducing their effects. Existing funding is likely insufficient for the energy transition, given the demand for disaster relief. With so much at stake in the name of economic growth, significant investments are required to establish a fair and equitable green investment ecosystem.
Indonesia not only faces funding challenges but also needs to master cutting-edge technology to improve performance efficiency and the energy transition system. Moreover, renewable energy, often considered intermittent energy, must implement the right strategy to ensure energy security. The application of appropriate technology, such as energy storage batteries and interconnections in island nations, offers potential solutions for the future. Thus, learning from the experiences of other countries is crucial to accelerating Indonesia’s transition toward a 100% renewable energy system.
The Indonesia Clean Energy Forum (ICEF) and Institute for Essential Services Reform (IESR) provide a platform for policymakers, business leaders, experts, and communities to exchange ideas on Indonesia’s energy transition. This annual event, established in 2017, serves as a vital gathering for stakeholders.
This year, the Indonesia Energy Transition Dialogue will focus on discussing strategies to accelerate energy transformation in the power generation sector. Topics will include a more in-depth examination of the long-term strategy for achieving net zero emission (NZE) targets, action steps for implementing JETP, Indonesia’s readiness to accelerate renewable energy adoption, and market policies and schemes to support the transition to the power system. Attendees will also have the opportunity to learn from successful overseas experiences in developing and implementing renewable energy systems and technologies. Through this event, IETD aims to become a cross-sectoral discussion platform, bringing together the central government, bilateral cooperation governments, international funding organizations, business leaders, community organizations, academics, practitioners, and financial institutions to formulate and realize collaborative actions toward achieving the national zero-emission target by 2050.
Ultimately, we hope to hear strong commitments from all attendees, particularly from Indonesia’s future leaders, who will drive energy transformation and climate policies for the next five years. It is our collective hope that these commitments will not remain mere rhetoric but will lead to tangible progress toward achieving our predetermined targets.