Friday, December 13, 2024

ESDM minister: Indonesia will unlikely achieve its energy mix target

Reading Time: 2 minutes
Gusty da Costa

Journalist

Editor

Interview

Indonesia will unlikely achieve its energy mix target of between 17 percent to 19 percent by 2025 as the country’s energy mix just reaches 13 percent to 14 percent, says Energy and Mineral Resources (ESDM) Minister Arifin Tasrif.

“This is because our infrastructure has not been sufficient enough and there are still bottleneck in the process. Demand for the energy mix has yet to increase rapidly, so we need to carry out programs to encourage demand,” Arifin said on Monday, August 8, 2024.

“As an example, the electric vehicle program and the solar power plant for industry and housing still need to be encouraged,” he cited.

To accelerate energy mix, Indonesia is optimizing the use of hydropower for electricity generation to replace gas-powered plants. In North Sumatra and Aceh, the government focus on the development of mini hydropower plants. There are 5 GW of hydro and mini hydro power plant in Aceh and North Sumatra.

Arifin said that the government plans to develop these hydropower plants to replace gas consumption.

“Currently, we send 16 cargoes of LNG from Papua to Arun. From Arun, the LNGs are sent to Belawan… In Belawan, the LNGs are used for power generation. At the same time, there are many potentials of hydropower in the areas,” he said.

The minister, however, cited that there is still obstacle in developing mini hydropower plants due to the lack of transmission network in Aceh, while suggesting that State electricity company PT PLN and the private sectors need to get involved in developing more transmission networks there.

“We hope that there will be a mutually benefited cooperation. In the absence of profits, no one wants to enter the transmission projects while we want to establish link between Sumatra and Java.” he said.

Floating solar panels

The government also has planned to use dams constructed by the Public Works and Housing Ministry to develop floating solar panels.

Currently, there are 14 Gigawatt of floating solar panel potentials in 259 locations in Indonesia with the existing projects in Saguling Dam in West Java and Singkarak Dam in West Sumatera.

Saguling solar power plant will have the capacity of 60 MW and Singkarak power plant has 50 MW. Both projects are developed by Indonesia Power with 51 percent shares along with strategic partner ACWA Power Company (Saudi company) with 49 percent shares.

Besides, the government also encourages generation of geothermal projects between Pertamina Geothermal Energy and PLN in existing seven geothermal power plants, including Lahendong, Ulubelu, Lumut Balai, Hululais, Kamojang, Sibayak, and Sungai Penuh.

“The projects will optimize the capacity by using technology that use heats from brines by separating fluids from separators,” he explained.

Government has set the target that the co-generation project will start between 2007 and 2009.

“There are many things that we can do to build energy resilience in our country as long as they are all measurable and transparent. Transparent means we open the opportunity for all parties to participate,” he concluded.

Gusty da Costa

Journalist

 

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

Darmawan Prasodjo, President Director of State power utility PT PLN, has been named CEO of the Year for the third consecutive time at the CNBC Indonesia Awards 2024 presentation ceremony held on Wednesday, December 11, 2024.
PT Bank Maspion Indonesia (BMAS) is on track for significant growth following its acquisition of a controlling stake by Thailand’s second-largest bank, KBank. The move opens up possibilities for corporate actions such as mergers and acquisitions (M&A) within Indonesia’s banking sector.
State-owned construction company PT Wijaya Karya (WIKA) has confirmed discussions regarding a potential merger with fellow state-owned company PT PP (PTPP). If the merger proceeds, the combined entity is expected to focus on large-scale infrastructure projects such as ports, airports, factories, and residential developments.
Indonesian Air Force Chief of Staff, Air Chief Marshal Mohamad Tonny Harjono, has emphasized the importance of implementing Artificial Intelligence (AI) and cyber technology in strengthening the country’s air defense.
The Second Joint Sea Operation Exercise 2024 (Latopslagab) held in conjunction with the Commemoration of the 2024 Indonesian Naval Fleet Anniversary has completed, with proven and successful firing of missiles and rockets.
Minister of Finance Sri Mulyani Indrawati reveals that the realization of the State Budget (APBN) deficit until November 2024 has reached Rp401.8 trillion (US$25.2 billion), or equivalent to 1.81 percent of Gross Domestic Product (GDP) and is still below the limit set in the law of Rp522.8 trillion (US$32,7 billion).