Indonesia, Rich in Renewable Energy

Indonesia is not only rich in its diversity of ethnicities, languages, and cultures but also abundant in natural resources. There are various types of natural resources that can be harnessed to support sustainable development in Indonesia, and one of them is energy, which has become a fundamental human necessity and a driving force for the nation's progress. Energy plays a crucial role in supporting the advancement of a nation across various sectors, including social, education, and the economy.

Renewable Energy Potential in Indonesia

Some of the energy sources available in Indonesia include fossil fuels such as crude oil, natural gas, and coal. In addition to fossil energy sources, Indonesia also possesses abundant renewable energy potential. Derived from sustainable natural processes, these renewable energy sources include solar energy, hydropower, wind energy, ocean energy, geothermal energy, and bioenergy.^[1] Indonesia has the potential for all six of these renewable energy sources, with a total capacity of 442 GW.^[2]

Among these renewable energy potentials, solar energy stands out as the most significant, with a capacity of 207.8 GWp.^[2] The other renewable energy potentials in Indonesia include hydropower at 94.3 GW, wind energy at 60.6 GW, bioenergy at 32.6 GW, geothermal energy at 28.5 GW, and ocean energy at 17.9 GW.^[2] However, as of 2021, the utilization of solar energy in Indonesia remains minimal, with a total installed capacity of Solar Power Plants (PLTS) in the country reaching only 0.20 GWp.^[3] This figure is relatively small compared to Indonesia's vast solar energy potential.

In general, the limited utilization of renewable energy for electricity generation is due to the relatively high production costs of renewable energy-based power plants, making it challenging to compete with fossil fuel-based power plants, particularly coal. Additionally, the lack of domestic industry support for renewable energy power plant components and difficulties in obtaining low-interest financing are obstacles to the development of renewable energy.^[2]

UNDP ACCESS Project

Through various programs and policies, the Indonesian government continues to make efforts to maximize the utilization of renewable energy. This includes partnerships with international organizations and agencies. One ongoing program is the Accelerating Clean Energy Access to Reduce Inequality (ACCESS) project, which aims to support impoverished and vulnerable communities in achieving fair and sustainable access to basic services to improve their livelihoods.

The ACCESS project is a collaborative effort involving the Korea International Cooperation Agency (KOICA), the Ministry of Energy and Mineral Resources (KESDM), the Ministry of State Administration (MSA) in Timor-Leste, the United Nations Development Programme (UNDP) Indonesia, and UNDP Timor-Leste. The project began in early May 2020 and is expected to conclude by the end of 2023. KOICA Indonesia has provided USD 18 million in funding, with USD 15 million allocated for Indonesia and USD 3 million for Timor-Leste.

The ACCESS Project is being implemented in 23 villages across four Indonesian provinces: East Nusa Tenggara, West Sulawesi, Southeast Sulawesi, and Central Kalimantan. It also covers 25 villages in three cities in Timor-Leste: Dili (Atauro), Bobonaro, and Manatuto. The project aims to provide electricity access to at least 20,000 people in Indonesia and Timor-Leste, supply clean water access to 3,500 people in Timor-Leste, enhance the technical capabilities of 80 local operators (with 30% being women), and establish 33 local renewable energy service entities.

Optimal Utilization of Renewable Energy

In line with the seventh Sustainable Development Goals (SDG), "Affordable and Clean Energy," every individual has the right to access affordable, reliable, sustainable, and modern energy. The utilization of renewable energy is crucial in achieving this sustainable development goal. Renewable energy facilities can be easily constructed independently or in a decentralized manner, ensuring that even rural communities have access to clean and affordable energy.

Furthermore, Indonesia's renewable energy potential must be fully maximized because the implementation of clean energy has a significantly positive domino effect on various sectors, including the environment, economy, society, and others. Thus, synergy and collaboration among various stakeholders need to be strengthened to optimize the utilization of renewable energy, ultimately leading to improved environmental and societal well-being.

Author: Dawam Faizul Amal

References:

1. Kemdikbud, “Menilik Sumber Energi Terbarukan di Masa Depan,” Mar. 25, 2021. https://ditsmp.kemdikbud.go.id/menilik-sumber-energi-terbarukan-di-masa-depan/ (accessed Feb. 15, 2023).
2. Setjen DEN, Outlook Energi Indonesia 2019. Jakarta: Sekretariat Jenderal Dewan Energi Nasional, 2019.
3. KESDM, “Capaian Kinerja Sektor ESDM Tahun 2021 & Rencana 2022,” 2022.