President encourages shift towards new, renewable energy

5eff804cc90472ae3c66a40556c45619 Photo by Bagus Indahono / AP.

Source: ANTARA
Date: August 16, 2021

Jakarta (ANTARA) - President Joko Widodo (Jokowi) has stressed the importance of shifting to new and renewable energy and accelerating a green technology-based economy to spur national economic growth.

"Transformation towards new and renewable energy as well as acceleration of green technology-based economy will become a crucial change in our economy," he noted during his state-of-the-nation address at the annual session of the People's Consultative Assembly (MPR) and joint session of the House of Representatives (DPR) and the Regional Representative Council (DPD) at the Parliamentary Complex here on Monday.

He said he believes the use of clean energy and green technology will have an impact on the creation of a more environmentally friendly economy.

Hence, efforts will be made to consolidate the strength of national research to align with the country's development agenda, he added.

In the first half of 2021, the realization of investment in Indonesia, excluding that in the upstream oil and gas sector and the financial service sector, reached Rp442.8 trillion, he noted.

Nearly 51.5 percent of the investment was outside Java and 48.5 percent in Java, and absorbed more than 620 thousand local workers, Jokowi said.

He expressed the hope the realization of investment until December 2021 will reach the government-set target of Rp900 trillion, creating more jobs and boosting the economy significantly.

"The development of investment must be an integral part of just and inclusive economic growth," he remarked.

The government is upbeat about contributing optimally to the settlement of its commitment to climate change adaptation in the Paris Agreement, he said.

The accelerated energy transition from fossil fuels to new and renewable energy is expected to help cut greenhouse gas emissions by 29 percent in 2030 and limit global warming by no less than 2 degrees Celsius.

According to data from the Energy and Mineral Resources Ministry, new and renewable energy has shown significant development in contributing to electrical power and fuel usage.

For instance, the use of biodiesel grew threefold in the past five years. The use of biodiesel started in 2008 when the government launched the 10-percent biodiesel (B10).

The production of B10 biodiesel reached a record 3.01 million kiloliters in 2015. The government later raised the biodiesel mix to 30 percent. The use of B30 biodiesel stood at 8.46 million kiloliters in 2020.

The success prompted other countries to reckon Indonesia as the world's largest biodiesel producer ahead of the United States, Brazil, and Germany. As a result, Indonesia managed to save Rp38.31 trillion, or US$2.66 billion, in foreign exchange in 2020.

In terms of the electrical power mix, new and renewable energy has increased the capacity of power plants by two gigawatts in the past five years, Sadikin said.

By the end of 2022, the realization of new and renewable energy mix is expected to touch 11.31 percent, he added. The government is optimistic about answering the challenge to achieve the target of new and renewable energy mix of 23 percent by 2025.

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