Indonesia Joins US’ Clean Energy Demand Initiative

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 394.Pers/04/SJI/2021

Date: 6 November 2021

Indonesia Joins US' Clean Energy Demand Initiative

The Indonesian government joins the Clean Energy Demand Initiative (CEDI), an initiative by the United States government to bring corporations and countries together to promote clean energy investment.

"The Clean Energy Demand Initiative is in line with the directive of the President, and is a concrete initiative for the international assistance that we need to accelerate steps towards achieving the NDC targets by 2030 and Net Zero Emissions by 2060," said Minister of Energy and Mineral Resources (EMR), Arifin Tasrif, at the launch of CEDI at COP26 in Glasgow, United Kingdom, Thursday (4/11) local time.

As President Joko Widodo stated on a different occasion, Indonesia's energy transformation to new and renewable energy (NRE) should be encouraged and strengthened. "Green economy, green technology, and green products need to be improved so that Indonesia is more competitive in the global market," Arifin asserted.

The joining of Indonesia, continued Arifin, will strengthen Indonesia's cooperation with the government and influential business entities in the United States to promote clean energy investment. "I express our gratitude and appreciation to the United States government for inviting us to join this initiative. I look forward to further discussions about the cooperation," added Arifin.

Indonesia has continued to implement the development of green economy and industry, such as through the development of green industrial areas that utilize large-scale NRE-based power plants. A large-scale hydropower plant with a capacity of 9 GW is currently under construction in North Kalimantan Province. The project is integrated with green industry development under the Renewable Energy Based Industry Development (REBID) program. "A similar project will also be developed in other areas, for example Papua," explained Arifin.

Moreover, the development of a Super Grid will begin in 2025 to provide energy access for local communities across Indonesia. Meanwhile, to develop green grids, regulations on power wheeling have been issued. This way, NRE electricity can be transferred directly to companies' operational facilities via existing networks of state utility company PT PLN (Persero).

The government has also encouraged industries and consumers to apply for a Renewable Energy Certificate (REC), which is issued by PT PLN (Persero). The REC acknowledges the use of NRE electricity, for example electricity generated by rooftop solar installations. "Rooftop solar installations will deliver benefits for industries and commerce because they will generate electricity from renewable energy sources, reduce emissions, and cut electricity bills," explained Arifin.

For the record, Indonesia has set targets to have 23% of NRE share in the primary energy mix by 2025, reduce emissions between 29% and 41% as set out in the Nationally Determined Contributions (NDCs) by 2030, and realize Net Zero Emission (NZE) by 2060 or sooner with international support. "We are preparing an NZE Roadmap according to these (targets)," Arifin concluded. (IY)

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