Green Energy and Carbon Reduction: Indonesia’s Path Toward Sustainable Development

Wed, 25 Sep 2024 09:00 | Green Energy | Editorial INTI

Jakarta, INTI - Indonesia has firmly committed to reducing its carbon emissions by submitting its Enhanced Nationally Determined Contribution (ENDC) to the global community. The country's commitments are focused on five key sectors: waste management, industrial processes and product use, agriculture, forestry and land use, and energy, which also includes transportation. The policies derived from these commitments have led to notable progress in cutting carbon emissions each year.

Coordinating Minister for Economic Affairs Airlangga Hartarto, speaking at the 2024 Kumparan Green Initiative Conference in Jakarta on Tuesday (24/09), said, "Indonesia has devised various mitigation strategies, including transitioning to higher RON gasoline. Fortunately, RON 88 is no longer in use, and we are promoting battery-based electric programs. Indonesia is also the only country to enforce mandatory biodiesel use, having already implemented B35, and we plan to increase it to B40 by 2025. This biodiesel initiative reduces diesel imports, utilizing 54.52 million kiloliters and saving Rp404.32 trillion in foreign exchange."

In the last three years, Indonesia has recorded significant reductions in carbon emissions, with 945 million tons of CO2 equivalent in 2020, 890 million tons in 2021, and 884 million tons in 2022. These milestones reflect the government's ongoing efforts to meet its carbon reduction targets amid growing global challenges.

Minister Airlangga also detailed the Carbon Capture, Utilization, and Storage (CCUS) projects underway in Indonesia’s key regions, such as Arun, Teluk Bintuni, and Bojonegoro. These facilities function like underground storage for gases, including CO2.

"Indonesia has one of the largest potentials for underground storage. The current market price is around 25 to 30 dollars per ton, and we need to develop regulations to capture more from the international market while balancing domestic market obligations. This will allow us to draw emissions from coal power plants (PLTU). Achieving net zero emissions doesn’t mean shutting down PLTUs but ensuring they operate with minimal emissions. This can be done by blending fuels with blue ammonia, liquefying captured carbon, and reinjecting it into the ground. With this approach, Indonesia can reach net zero emissions," explained Minister Airlangga.

The government has also made strides in promoting electric vehicle infrastructure. Minister Airlangga pointed out that Jakarta leads the way in adopting green energy-based public transport, and he hopes other regions will soon follow suit. National policies have been designed to encourage local governments to transition to public transportation systems powered by clean energy.

Indonesia’s green energy initiatives are not limited to the domestic sphere. The country is actively participating in global initiatives, including the ASEAN Zero Emission Community, the Just Energy Transition Partnership Program, and the Indo-Pacific Economic Framework (IPEF). Minister Airlangga mentioned that green energy funding is being supported by the U.S. and international investment banks, with several Indonesian green projects, such as geothermal and waste-to-energy, already in the pipeline.

Minister Airlangga also stressed the importance of media support in promoting Indonesia's green energy potential, preventing foreign competitors from capitalizing on it. "The role of the media is crucial in raising awareness about the green energy opportunities in Indonesia and ensuring they remain under our control," he said.

He concluded by emphasizing the need for collaboration across all sectors to achieve carbon reduction targets and a successful transition to green transportation.