Jakarta, 28 June 2021 —  As Indonesia gears towards a green and inclusive economy, the Government of Indonesia will need  to formulate a strategic plan which will need to address the issue of Net Zero Emissions and transition away from dependence on fossil fuels, experts said  during a recent virtual global consultation hosted by the United Nations Development Programme (UNDP).

The discussion, entitled “Energy Transition in Emerging Economies and Recently Developed Countries”, was hosted by UNDP’s Market Transformation for Renewable Energy and Energy Efficiency (MTRE3) Project. The Project aims to support for Indonesia’s gradual transition from fossil fuels to sustainable energy.

The forum, featured representatives from organizations working on alternative energy development,  and it provided examples from various developing countries with similar economic profiles as Indonesia. The  consultation also outlined practical guidance on addressing  the issue of energy transition from social, technical and financial perspectives.

Global Head of Energy UNDP, Marcel Alers noted that, “The contributor to greenhouse gas emissions is still dominated by fossil fuels, “adding that “It is time for all countries to switch to sustainable energy. The transition to sustainable energy is important to reduce the greenhouse effect. UNDP has developed a risk-free renewable energy investment framework and is supporting countries to create an enabling environment for large-scale clean energy investment.”

Sophie Kemkhadze, Deputy Resident Representative of UNDP Indonesia reiterated UNDP’s commitment to adopting innovative solutions to realize a ‘just’ energy transition in emerging economies.  “At UNDP we believe that discussions on low-carbon energy should not only be limited to policy, technical and financial matters. It should also focus  on inclusivity and social impact. We must consider the socio-economic impacts on communities who have relied extensively on the fossil fuel industry. We should continually promote skills trainings required for the new opportunities provided by the clean energy era,” she said, adding that transitioning to clean energy also provided an opportunity to ensure women’s representation in the sector.

Dadan Kusdiana, Director General of New Renewable Energy and Energy Conservation, Ministry of Energy and Mineral Resources and as National Project Director of MTRE3 Project, added, “Indonesia is still largely utilizing coal to meet the energy demand, but the Government is striving to develop more renewables. As a coal producer and exporter, Indonesia still sees the importance of energy transition; however, it has to be approached strategically to minimize risks and to anticipate challenges,” he said.

In addition to the question of a ‘just’ transition to clean energy, The consultation also looked at the repurposing of coal plants and financing energy transition.

The MTRE3 Project is a collaborative project between UNDP and the Government of Indonesia, Ministry of Energy and Mineral Resources (Directorate General of New, Renewable Energy and Energy Conservation) through Design and Implementation of Appropriate Mitigation Actions in Energy Sector. The five-year MTRE3 project runs until 2022 and focuses on pilot projects in four provinces, Riau, Jambi, West Sulawesi and East Nusa Tenggara.

The MTRE3 project will simultaneously support the implementation of mitigation actions covered in the National Climate Mitigation Action Plan (RAN-GRK) and Provincial Climate Mitigation Action Plan (RAD-GRK) and will also bring  about  an  alternative  scenario where the realization of the Renewable Energy and Energy Efficiency implementation in the pilot provinces increases and contribute significantly to the target Indonesia National Determined Contributions (NDC).

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Written by Enggi Dewanti

Edited by Ranjit Jose and Tomi Soetjipto