Synergy Needed to Meet National Energy Mix Target by 2025, Says Energy Minister
MINISTRY OF ENERGY AND MINERAL RESOURCES
PRESS RELEASE
NUMBER: 126.Pers/04/SJI/2021
Date: 7 April 2021
Synergy Needed to Meet National Energy Mix Target by 2025, Says Energy Minister
There must be strategic efforts and synergy between state ministries/agencies that are members of DEN from the government group and members of DEN from the stakeholder group to accelerate the realization of national energy mix target by 2025, which consist of renewables share of 23%, natural gas share of 22%, oil 25%, and coal 30%, Minister of Energy and Mineral Resources (EMR), Arifin Tasrif, has said as Executive Chair of Indonesian National Energy Council (DEN) when he opened Public Relations Forum of the National Energy Council under the titled Towards National Energy Mix by 2025. The PR forum was held in a hybrid mode in Bandung, West Java, on Thursday (6/4).
Arifin went on to say that in 2020, the shares of renewables, natural gas, oil, and coal were 11.20%, 19.16%, 31.60%, and 38.04% respectively.
"Looking at the dynamics in the energy sector, the government has prepared draft National Energy Grand Strategy which aims to develop the production capacity and absorption of renewables", continued Arifin.
State ministers who attended the forum were Minister for Research and Technology/Head of National Research and Innovation Agency (Ristek/BRIN), Minister for Agriculture, Minister for Environment and Forestry, and Minister for Transportation.
Minister Ristek/BRIN Bambang PS Brodjonegoro said that his ministry is ready to support the acceleration of national energy mix realization for 2025 through circular economy which is backed by research and innovation.
Similar support was expressed by Minister for Transportation Budi Karya Sumadi, stating that his ministry has made use of renewables by using electric cars as the official vehicles of the minister and high-ranking echelons I and II officials.
Minister for Environment and Forestry Siti Nurbaya Bakar said that DEN can contribute to reducing greenhouse gas emission. The Council is also expected to offer real breakthroughs. Minister Siti supports the update to the National Energy Policy (KEN) and the National Energy Master Plan (RUEN) while still respecting the environment and reducing greenhouse gas emission.
Meanwhile, Minister of Agriculture Syahrul Yasin Limpo expected DEN to performs its duties well so that Indonesia is advancing with clean energy. Syahrul hopes the PR Forum will raise public awareness about energy policies in Indonesia.
On this occassion, DEN members from the stakeholder group (APK DEN) offered their opinions on the policies made by state ministries/agencies that are DEN members from the government group. The APK DEN also presented their ideas on how to speed up the realization of renewable energy mix target by 2025. The Work Programs of DEN Members for 2021 were also presented.
APK DEN As Natio Lasman said that renewable acceleration through the construction of PV solar power plant in East Nusa Tenggara Province, tagged as national solar energy barn, must be supported by tax policies, subsidies, and funding. Additionally, As Natio proposed biomass development, increase in oil-palm productivity, water levies and charges, and land procurement.
APK DEN Agus Puji Prasetyono presented the Work Programs of DEN for 2021 which includes, among others, increased security towards Indonesia's energy independence and sovereignty; monitoring of cross-sectoral polices, implementation of KEN, RUEN, RUED (regional energy master plan), and energy conservation; determination of areas prone to energy crises and emergencies, plus monitoring and completion of regulations to update KEN and RUEN.
APK DEN Satya Widya Yudha stated that the economies of scale of renewables are not viable because fossil energy has yet to include externality cost (cost of environmental damage), although the investment cost of solar power systems has become more competitive.
For this reason, Satya suggested making regulations on carbon pricing. With carbon pricing, fossil energy producers will be forced to curb their carbon emission, for example through coal upgrading, DME (Dimethyl Ether), or coal liquefaction in the coal subsector as well as zero flaring in oil and gas operations.
In terms of nuclear development, the Indonesian government through DEN can pioneer regional energy policy at the ASEAN level. Indonesia's neighboring countries may develop nuclear power plants, offering the potential of excess electricity for sale to Indonesia. "Thus, there needs to be a better regional energy strategy in the future. The strategic and work plans (Renstra and Renja) of DEN as agreed by DEN members from the government and the stakeholder groups are expected to give direction to DEN in the future," concluded Satya.
APK DEN Yusra Khan said that renewables development is not limited to solar and wind energy because there is a wide variety of renewables which, according to the research units of several national universities, are superior and can contribute significantly to renewable mix acceleration by 2025. One of these renewables is ocean energy.
APK DEN Musri stated that renewables development needs the support of the national government and the parliament as well as involvement of the local communities, because these communities can offer their local wisdom, such as how to use geothermal energy, solid waste, and microhydro to meet the daily energy needs of these communities.
Secretary General of DEN Djoko Siswanto said the DEN PR Forum has been held to foster cooperation between Government PRs within the state ministries/agencies that are members of DEN, units within the Ministry of EMR, and other relevant agencies.
The presence of the National Energy Council, which is a mandate of Law Number 30 of 2007 on Energy, is expected to trigger significant changes in energy management. This way, energy security and independence can be realized to support national development.
Besides state ministers, the PR Forum was attended by DEN Members from the Stakeholders group (APK DEN), Permanent Representatives to DEN from the government group, Secretary General of DEN, Government PR from state ministries that are DEN members, and other relevant state agencies. (IY)
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