The lack of reasearch and development of new and renewable energy technology has made Indonesia a mere market for advanced countries’ technology and led to Indonesia’s dependence on technology of the advanced nations, experts have warned.
Energy economist of the Gadjah Mada University, Fahmi Radhi, said that Indonesia has abundant new and renewable energy resources, but lacks of sufficient technology to develop them.
“As an example, (State energy company) Pertamina can only develop bio-diesel up to B40 category. Meanwhile, the development of B100 biodiesel was terminated after its Italian and Chinese partners withdrew from the project and left Pertamina alone to continue the program,” Fahmi told Indonesia Business Post on Tuesday, September 17, 2024.
Similar case also happened with the coal gasification project. The US$2.1 billion project was terminated after the US company − Air Products and Chemical, Inc. − withdrew from the project and left PT Bukit Asam and Pertamina on their own.
Meanwhile, Fabby Tumiwa, Executive Director of the Institute for Essential Service Reform (IESR), said Indonesia relies too much on foreign technology in the development of solar power plant. He cited that Indonesia can only be an assembler in the production of solar module as its components are imported from China.
“Indonesia cannot produce components of solar power plant, such as silicon wafer, solar cells and low iron tempered glass for the solar panel. In fact, the ecosystem of solar power plant can be established within a short period of between three to five years if the government is consistent to develop them,” Fabby said.
In addition to solar panel, Indonesia also cannot produce technology for wind power station as components, such as mast, turbine, motor and magnet are still imported from abroad.
Former CEO of PT Pertamina Geothermal Energy, Abadi Poernomo, said Indonesia actually has the capacity to develop the technology in geothermal sector as the turbine and pipe technology for Geothermal power plant are not complicated.
However, Abadi said, mass production of geothermal power plant components are not economically feasible in Indonesia because the market cannot absorb all the products at the same time that manufacturers have to compete with existing and more experienced ones.
Lack of research and development
Fabby Tumiwa said Indonesia needs to follow the path of the advanced nations in developing new and renewable energy technology.
He cited China as an example. In order to monopolize technology in solar power plant, China has started its research and development in the 1950s. In the 1990s, its solar module was commercialized in Australia and then sent back to China.
“If we visit China, companies such as Goldwind, Sungrow and Huawei have hundreds of thousands of patents in the technology of new and renewable energy. It shows that the companies have conducted serious research and development in order to control the market,” Fabby said.
He added Indonesia has not seriously funded and conducted its research and development that the country has no sufficient and original technology of new and renewable energy.
