Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, has revealed the nation’s decarbonization targets as stipulated in the draft revision of Government Regulation Number 79/2014 on National Energy Policy.
The minister said that grand changes in policy strategy in the revised National Energy Policy will pay attention to security of supply and affordability during the energy transition, optimize the use of gas as a transitional energy source, maximize the use of New and Renewable Energy and the use of new energy to balance and achieve decarbonization targets.
“The energy sector decarbonization target is to achieve a share of renewable energy in the primary energy mix of 23 percent in 2025 and 31 percent in 2050,” Arifin said on Monday, July 8, 2024.
Meanwhile, the draft revision of Government Regulation on the National Energy Policy stipulates the energy sector decarbonization target will achieve peak emissions in 2035 and net zero emissions in 2060 and the target of the New and Renewable Energy mix in 2060 is 70-72 percent.
The draft also sets projections of final energy and electricity consumption, supply, and primary energy mix with additional greenhouse gas emmision levels and the greenhouse gas emissions intensity.
Previously, fiscal and non-fiscal incentives were granted only for energy diversification programs and renewable energy development. Meanwhile, the revised government regulation on national energy policy stipulates that there are also disincentives and financing and compensation for state owned enterprises and private sectors in the implementation of energy transition and energy security programs.
“It also regulates international energy cooperation and diplomacy to strengthen Indonesia’s energy position and realize a just energy transition,” Arifin said.
