Indonesia-UK Launch Low Carbon Partnership Program

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 230.Pers/04/SJI/2020

Date: 30 July 2020

Indonesia-UK Launch Low Carbon Partnership Program

Ministry of Energy and Mineral Resources (EMR) in cooperation with the UK government on Thursday (30/7) launch the MENTARI program. MENTARI stands for 'Menuju Transisi Energi Rendah Karbon Indonesia', or Towards a Low Carbon Energy Transition in Indonesia. The partnership is aimed to support the recovery of green economy in Indonesia by accelerating the realization of a target of 23% portion in the energy mix from new renewable energy in 2025.

Secretary General of Ministry of EMR Ego Syahrial said the Indonesian government's commitment to reducing emission and realizing people's access to energy will always consider environmental aspect to ensure sustainable utilization.

"Indonesia's commitment to reducing emissions by 29% in 2030 is our effort towards clean energy. To realize this, we're drafting a presidential regulation on Feed in Tariff to increase the utilization of new renewable energy, particularly in the 3T (frontier, outermost, and least developed) regions," said Ego in his speech for the launch.

The government's concrete step is by converting fossil-fueled power plants producing high emission to renewable energy-based power plants. Based on the Ministry of EMR's inventory, as many as 2,246 diesel power plants, 23 steam power plants, and 46 combined-cycle power plants will be converted within three years. "The diesel power plants to be converted are over 15 years old, while the steam and the combined-cycle power plants are over 20 years," said Ego.

The Mentari program which will run in 2020-2023, continued Ego, is an important breakthrough of the energy transition implementation stimulating Indonesia's economy amid the Covid-19 pandemic.

"The MENTARI comes at the right time. We're optimistic that the program can create inclusive economic growth and reduce poverty through the development of the renewable energy sector," he affirmed.

Ego admitted the physical distancing policy and isolation to curb the spread of the Covid-19 has impacted significantly on reduced global consumption. Consumption of fossil fuels has been recorded to be 17.6% lower compared to consumption in the same period last year.

However, this is actually a blessing because CO2 emission can drop significantly. "Therefore, during the pandemic, energy production must be adjusted by accelerating the transition process to clean energy," he said.

The Ministry of EMR warmly welcomes the cooperation because the UK government has more experience in developing the renewables. The UK is considered the most successful country in the world to reduce the portion of fossil energy drastically since the pandemic strikes.

The UK government has even channeled funds worth of Rp73 trillion for the renewable energy sector in July to stimulate domestic economic growth.

"This proves our commitment to environmental friendly-based energy, creating employment, and recovering economic activities," said British Ambassador to Indonesia Owen Jenkins.

Jenkins thinks Indonesia has the potential to be one of the superpowers in the world to develop renewable energy in the future. Even more so because only 2.4% or 10 Giga Watt (GW) have been worked on of the total capacity 442 GW convertible into electricity.

"Indonesia has the potential to be a superpower in the renewable energy sector. Even more so because we're facing the challenge to recover the environment-based global economy (green economy) and have entered a critical time against climate change. I'm pleased the United Kingdom partners with Indonesia through the Mentari program in supporting Indonesia's energy transition," explained Jenkins.

The United Kingdom will share its experience in preparing the regulatory framework of renewable energy that leads to the creation of better business climate and the promotion of private sector involvement in NRE projects both on-grid and off-grid especially in eastern Indonesia.

Besides technical assistance, business partnership (match-making), knowledge, and innovation, the program will focus on increasing electricity capacity at micro-grid projects and building NRE trade relation at domestic and international levels.

"This is a new phase for Indonesia in implementing the energy transition. Besides reducing emission and protecting the environment, the use of renewables will improve energy security and build reliable electricity systems at affordable costs," Jenkins concluded.

During the IEA's Energy Transition Summit held on 8 July 2020 and attended by Minister of EMR Arifin Tasrif, global leaders from 40 countries agreed on the recovery of green economy under a campaign slogan 'Build Back Better'. (IY)

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