Sunday, January 26, 2025

Indonesia struggles to achieve 2025 energy mix target 

Reading Time: 2 minutes
Gusty da Costa

Journalist

Editor

Interview

Minister of Energy and Mineral Resource Arifin Tasrif says Indonesia’s energy mix program has not increased significantly in 2023 that Indonesia needs to strive to get close to the target of 23 percent energy mix in 2025. Energy mix program is meant to reduce the use of fossil fuel based energy and increase the use of renewable energy.

“Currently our energy mix is still 13.1 percent,” Arifin told an annual media conference in Jakarta on January 15,2024.

According to Arifin, the failure of Indonesia to achieve the target is caused by several factors. First, the less availability of electrical energy in the system due to the 35 GW capacity power plant construction program that has not been resolved and has entered the commitment stage.

Second, the impact of reduced demand. The reduced demand was caused by obstacle that Indonesia experienced some times ago did not encourage increased electricity consumption.

“And thirdly this is our system. Whether our infrastructure can support it or not as a whole, we must improve the system so that it is perfect. We also need to prevent inefficiencies. We need to have many smart grids so that there is no intrusion and we can maintain efficiency,” he explained. 

The last and the most important thing is the demand growth. As to encourage growth, our energy must be competitive and environmentally friendly. The competitive and environmentally friendly energy will encourage investment in the country.

Strategic Steps

Arifin said there are several strategic steps to achieve the 2025 energy mix target including the acceleration of rooftops solar PV program. The program must be adjusted to the ability of the community and the ability of PLN to accommodate it. Besides, Indonesia should implement the power plant conversion program to renewable energy and the mandatory B35 program with a 2025 target of 13.9 million kilo liters.

“We must intensify the cofiring program to reduce emissions and provide energy access through renewable energy in remote and isolated locations. Also included is the geothermal exploration which still has not reached what we planned and programmed,” he explained.

The ministry has inaugurated a floating solar power plant in Cirata, West Java. The ministry is also developing more projects of floating solar power plants because Indonesia has surface waters that can be utilized and optimized to produce energy.

The potential for floating solar power plants in lakes is found 36 locations with the potential utilization is 74.6 GW. In addition, there are also hydro power and micro hydro in 12 locations with potential of 1.8 GW. ” We will optimize these,” Arifin concluded.

In addition to this, there are 259 dam locations, with potential of 14.7 GW. There are potentials for hydropower in these dams to produce 450 MW which can immediately be used for energy mix.

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:
No topics
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

Star Energy Geothermal, a subsidiary of PT Barito Renewables Energy (BREN), is collaborating with global energy technology company SLB to accelerate technology in developing geothermal assets aimed at increasing the efficiency and economy of the company’s geothermal assets.
State power utility PT PLN has confirmed its commitment to supporting the 8-percent economic growth target through the development of electricity infrastructure that will cater the needs of industry, new areas development, and remote regions.
Koaksi Indonesia, a non-profit organization for sustainable development programs, has issued recommendations that will encourage nickel downstreaming and help contribute to the creation of green jobs.
Six major national and regional banks will soon begin construction of their offices in an effort to realize comprehensive banking services in the Core Government Center Area (KIPP) of the Nusantara Capital City (IKN) prior to starting operation in the first quarter of 2026.
PT PLN Indonesia Power (PLN IP) has ensured that the 50-Megawatt (MW) Singkarak Floating Solar Power Plant (PLTS) on Lake Singkarak, West Sumatra, will start operating or commissioning on date (COD) in 2027. The PLTS was developed together with ACWA Power, an energy company from Saudi Arabia.
State power utility PT PLN (Persero) noted that it has found obstacles in the development of new renewable energy (EBT) in Indonesia due to limited large areas available for the project.