The Institute for Essential Services Reform (IESR) has expressed concerns over the 2021-2030 Electricity Supply Business Plan (RUPTL), which is being touted as a “green” plan, stating that it has not made significant progress toward meeting its renewable energy targets.
According to IESR, many renewable energy projects outlined in the RUPTL have not yet been implemented, with some still awaiting tender or construction.
Fabby Tumiwa, IESR Executive Director, stated that the “green RUPTL” has not resulted in meaningful changes to Indonesia’s renewable energy mix.
“Most of the renewable energy power plant projects scheduled for 2021-2025 have not been tendered, constructed, or put into operation,” Fabby said as quoted in a statement on Friday, December 6, 2024.
As a result, the renewable energy share in Indonesia’s energy mix remains at just 13.1 percent through 2024, well below the government’s target of 17 percent by 2025.
He added that energy transition efforts in 2024 are still in a consolidation phase, influenced by leadership changes and new priorities, as well as global economic uncertainties.
Fabby emphasized that 2025 would be a critical year for Indonesia to formulate more effective strategies and policies to accelerate a fair and efficient energy transition.
He also noted that the government’s focus on carbon capture and storage (CCS/CCUS) technologies, which are expensive, immature, and noisy, is not an ideal solution.
Meanwhile, the government has been slow to adopt existing technologies such as solar and wind power, as well as energy storage batteries, which are now more affordable and widely available in the market.
According to Fabby, many countries around the world have expressed their commitment at COP28 in 2023 to double energy efficiency and triple renewable energy capacity by 2030.
These commitments will create greater opportunities for investments and financing in renewable energy and energy efficiency sectors.
Coal-fired power plants
In a positive development, energy transition in Indonesia received a boost when President Prabowo Subianto announced during the G20 summit in Brazil that Indonesia would phase out coal-fired power plants by 2040.
This is in line with the mandate of Presidential Regulation No. 112/2022, which aims to retire coal-fired power plants ahead of their economic lifespan.
“This mission is not impossible, as long as it is accompanied by substantial reforms in policy, regulation, and integrated power system planning. These efforts are essential to ensure energy resilience and contribute to achieving the 8 percent economic growth target set by President Prabowo’s administration,” Fabby concluded.
