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Indonesia takes multiple measures to promote energy transition

The Indonesian government recently released the “Comprehensive Investment and Policy Plan” to promote further energy transformation and sustainable economic and social development. The Indonesian government stated that the plan comprehensively considers challenges in technology, finance, social equity and other aspects, and lays out a roadmap for Indonesia’s energy transformation.

The Indonesian government has previously pledged to achieve net-zero emissions by 2060. The newly released “Comprehensive Investment and Policy Plan” lists more detailed carbon emission reduction plans, priority projects and financing mechanisms, and proposes to increase the proportion of renewable energy power generation to 44% by 2030. In the next three to five years, Indonesia will also raise approximately US$20 billion in funds through international financing mechanisms to help achieve its energy transformation goals.

Wind power

Indonesia has abundant renewable energy reserves, obvious advantages in water, solar, biomass, geothermal, and other resources, and great development potential. Data released by the Indonesian government show that as of October 2022, the country’s renewable energy resource utilization rate is only 0.3%. The proportion of renewable energy power generation such as wind and photovoltaic in the power structure is still low. The current national power generation capacity Half of the total still comes from coal power.

The Indonesian government has taken various measures to promote coal power’s transformation and orderly exit. In September last year, Indonesia promulgated new regulations, announcing that it would no longer build new coal-fired power plants and requiring Indonesia’s national power company to accelerate the closure of coal-fired power plants it holds. Indonesia’s national power company has proposed a phased roadmap to phase out coal power and plans to add 20.9 GW of renewable energy power generation capacity. The company is also preparing a carbon-neutral roadmap to make renewable energy power plants a major player in the country’s power generation by 2045 and achieve 100% clean energy power generation from 2055 to 2060.

Solar energy is currently the main area of green power development in Indonesia. The Ministry of Energy and Mineral Resources of Indonesia plans to invest 210 billion Indonesian rupiah (1 yuan is approximately 2,173 Indonesian rupiah) to install rooftop solar panels in 70 government departments. It is expected to save 15 million kilowatt hours of electricity every year and reduce electricity consumption by 339,600 in 25 years. tons of greenhouse gas emissions. The Indonesian government has launched the “Solar Islands” plan to install rooftop solar panels in millions of poor households within 4-5 years. The government is also actively building solar power plants and floating photovoltaic power plants. Relevant statistics show that Indonesia’s photovoltaic production capacity will increase from the current less than 1 GW to 29 GW by 2030. In addition, hydropower and geothermal energy are also key areas of development and investment for Indonesia to achieve energy transformation.

Coal power

The Indonesian government has formulated a roadmap for developing the electric vehicle industry and continues to introduce relevant preferential policies to encourage people to use new energy vehicles. For example, it provides up to 100% corporate income tax reduction for enterprises in the electric vehicle field and provides subsidies for consumers who purchase electric vehicles; driving electric vehicles in some areas of Indonesia is not subject to the odd and even number restriction policy, and can enjoy discounts on parking fees, etc.

In recent years, China and Indonesia have achieved remarkable results in practical cooperation in the field of renewable energy. In July this year, the Indonesian Batang Hydropower Station built by China Power Construction successfully intercepted water, laying an important foundation for follow-up work; in October, the Chinese company Trina Solar signed a cooperation document with the Indonesian side to build the first photovoltaic cell and Component production base; Agong, spokesman for the Indonesian Ministry of Energy and Mineral Resources Pribati, said that China has advanced technology and rich experience in renewable energy, and Indonesia will continue to strengthen cooperation with China in relevant fields to help Indonesia achieve its energy transformation goals. “Chinese investors will help Indonesia achieve its carbon neutrality goal.” Play an important role”.

Reprinted from “People’s Daily” (page 14, December 19, 2023)

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