Indonesian Govt to Focus on Four RE Priorities in 2021

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 019.Pers/04/SJI/2021

Date: 15 January 2021

Indonesian Govt to Focus on Four RE Priorities in 2021

This year, we have to start implementing efforts to achieve the 23% energy mix target by 2025, Director General of New, Renewable Energy and Energy Conservation (NREEC) of Indonesian Ministry of Energy and Mineral Resources (EMR), Dadan Kusdiana, has said in Jakarta on Thursday (14/1).

Dadan continued to say that the Indonesian Government will focus on four RE priorities in 2021.

The first priority is the continuation of the mandatory B30 program, by requiring the blending of 30% biodiesel into 70% Solar diesel. "We're preparing the biofuel use," explained Dadan.

Dadan admitted that B30 consumption in 2020 declined by 12% from the allocated USD9.55 million kilo liter (KL), to only USD8.4 million KL. "We prepared the production, logistics, and transportation, but because of the Covid-19 pandemic, consumption fell," he said.

In 2021, the biodiesel consumption is targeted at 9.2 million KL. "Ten biofuel companies will produce the supplies, while 20 companies will distribute them," said Dadan.

The second priority is biomass co-firing. This program makes use of biomass to subtitute or mix with coal to fire coal power plants (PLTU).

The third one is accelerated construction of solar power systems (PLTS). Flexible location (area) and fast construction time are the government's considerations to prioritize this program. "We'll have rooftop solar systems, floating systems on reservoirs or dams, and large-scale solar plants," Dadan explained.

The last priority is the conversion of fossil energy-based power plants, especially diesel power generators (PLTD), to RE power plants which are more environmentally friendly. "We're preparing a ministerial decision to support the conversion," said Dadan.

The Indonesian Government has also set a target to increase the installed capacity of RE power plants of 905.73 mega watt (MW), consisting of 196 MW from geothermal power plant, 557.93 MW from hydroelectric power plants, 138.8 MW from solar PV power plants, and 13 MW from biomass power plants.

The RE investment target for 2021 is USD2.05 billion or about Rp 28.9 trillion (exchange rate is assumed at Rp 14,100 per dollar), higher than realized investment in 2020 which was USD1.36 billion or about Rp19.2 trillion. "There is a little expansion, improved quality, so the investment target for 2021 will be higher," Dadan concluded. (IY)

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