Energy Ministry Targets 15.7% Renewable Energy Share in 2022

MINISTRY OF ENERGY AND MINERAL RESOURCES

THE REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 25.Pers/04/SJI/2022

Date: 17 January 2022

Energy Ministry Targets 15.7% Renewable Energy Share in 2022

Director General of New, Renewable Energy and Energy Conservation (NREEC) of the Ministry of Energy and Mineral Resources (EMR), Dadan Kusdiana, on Monday (17/1) held a press conference about his subsector's performance in 2021 and targets for 2022.

Dadan said that non-tax state revenue (PNBP) of the NREEC subsector in 2021 was realized at 134% of the target, that is, at Rp1,929 trillion out of the Rp1,438 trillion target. The PNBP has been based on exploitation pattern, with the majority (97%) of geothermal PNBP originating from the existing Geothermal Work Areas in the form of Government's share, while the holders of Geothermal Permits (IPB) contribute 3% to the geothermal PNBP.

Dadan also explained that the NREEC subsector reduced greenhouse gas emissions by 69.5 million tons of CO2e, or 104% of the targeted 67 million tons of CO2e. Speaking on the use of local components (TKDN), Dadan said hydropower plants used 76.71% of TKDN out of target 70%, geothermal power plants 38.97% out of target 35%, and bioenergy power plants 57.75% out of target 40%.

Moreover, the share of new, renewable energy in the energy mix in 2021 hit 11.5%. Dadan said the Ministry of EMR had initiated several efforts to accelerate the 23% renewable energy share target by 2025.

"In 2021, new, renewable energy had 11.5% share in the energy mix. We have initiated several efforts to accelerate new, renewable energy development towards the 23% target in 2025, among others by completing draft Presidential Regulation on new, renewable energy prices, implementing ministerial regulation on rooftop solar power systems, adopting the mandatory biofuel policy, providing fiscal and non-fiscal incentives for new, renewable energy development, ensuring ease of doing business, and encouraging the increased demands for electricity, for example through the use of electric vehicles and induction stoves," continued Dadan.

In the last five years, NRE generating capacity has increased by 1,730 MW with an average annual growth of 4.3%. The installed capacity of new, renewable energy power plants in 2021 came at 654.76 MW out of the target of 854.78 MW.

"The capacity of new, renewable energy power plants in 2021 rose by 654.76 MW, among others from Poso Peaker Expansion hydropower plant #1-4, Malea hydropower plant, 3 geothermal power plants, bioenergy power plants, 18 micro hydropower plants, and 7 solar power plants and rooftop solar power systems," Dadan commented.

Amid various global economic challenges, the NREEC subsector could still attract a significant investment of USD1.51 billion, or 74% of the target of USD2.04 billion. Dadan hopes the NREEC investment can encourage economic growth, generate national employment, and support efforts to recover the national economy.

Touching on the mandatory biodiesel policy, Dadan said the domestic use of biodiesel in 2021 came to 9.3 million kiloliters (KL) with a saving of Rp66.54 trillion in foreign exchange. "We will continue to promote the mandatory biodiesel policy to reduce imports and save foreign exchange," Dadan added.

Next, Dadan said the total investment in energy conservation was recorded at Rp200 billion, or equivalent to USD0.0143 billion. According to the Ministry's Strategic Plan (Renstra), the energy conservation investment target is set at USD0.01 billion, so the Rp200 billion realization is 143% against the Renstra.

In 2021, the Directorate General of NREEC received a Public Service Top Innovation award for the SINERGI (Energy Conservation Information System) application and Integrity Zone towards Free from Corruption Area (WBK) award for the Geothermal Directorate. Dadan also said his office issued 5 ministerial regulations, 13 Indonesian National Standards (SNI), and 1 Indonesian National Competency Standard (SKKNI).

Dadan went on to detail the performance targets of the NREEC subsector for 2022, as follows:

1. To increase the share of new, renewable energy in the primary energy mix to 15.7% in order to generate 366.4 MBOE of energy.
2. To add the installed capacity of rooftop solar by 335 MW, and 648 MW from other types of renewable energy power plants.
3. To rise the B30 policy implementation to 10.1 million KLs.
4. To reduce greenhouse gases emissions by 91 million tons of CO2e.
5. To attract USD3.9 billion of NREEC investment.
6. To bring in Rp1,553 billion of non-tax state revenues.
7. To boost the local contents (TKDN) of hydropower plants to 70%, geothermal power plants to 35%, solar power systems to 40%, and wind power plants to 40%.
8. To foster international cooperation about the feasibility study of nuclear power plants.
9. To improve Service Satisfaction Index, Effectiveness Index of Fostering and Supervision, Bureaucratic Reform Index, Professionalism Index of State Civil Apparatus, and Performance Indicator of Budget Executors (IKPA).
10. To finish priority regulations and standards of the NREEC subsector, among others, the new, renewable energy bill, draft presidential regulation on renewable energy prices, draft ministerial regulation on the Minimum Energy Performance Standard (SKEM) of Energy Appliances, and the SNI and SKKNI of the NREEC subsector. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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