Ministry of Energy and Mineral Resources of the Republic of Indonesia

06/23/2021 | Press release | Distributed by Public on 06/23/2021 04:26

Energy Minister Asserts Indonesia’s Committment to Carbon Neutral

Energy Minister Asserts Indonesia's Committment to Carbon Neutral

Monday, 21 June 2021 - Dibaca 140 kali

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 214.Pers/04/SJI/2021

Date: 21 June 2021

Energy Minister Asserts Indonesia's Committment to Carbon Neutral

Indonesia is committed to development transition towards low carbon and climate resilience in order to achieve the emission reduction target of 29% by 2030 or 41% with international support, Minister of Energy and Mineral Resources (EMR), Arifin Tasrif, has said when receiving a work visit of Minister for the Environment of the Czech Republic, Richard Brabec, on Monday (21/6).

Arifin explained the long-term strategies to reduce greenhouse gas emissions in the energy sector in an attempt to achieve carbon neutrality in Indonesia. In the long term, carbon neutral can be achieved through massive development of New, Renewable Energy (NRE) potential, transmission interconnection and development of smart grid systems, reduction of fossil energy use, and application of clean energy technology to existing fossil energy-based power plants as well as electric vehicle development.

Arifin went on to explain that NRE has currently contributed 11.2% to the national energy mix, with hydro and geothermal power plants making up the largest share. The government is also preparing a National Grand Energy Strategy which will set out additional NRE generation capacity of around 38 Giga Watt (GW) in 2035. 'Solar PV is a priority because its investment cost is relatively lower, the installation time is short, and it offers abundant potential,' said Arifin.

For the record, Indonesia is blessed with more than 400 GW of NRE potential spread throughout the country. About 208 GW of the country's NRE potential comes from solar energy, followed by hydro energy 75 GW, and the remaining is from wind, bioenergy, geothermal, and ocean energy. For this reason, the Government of Indonesia wishes to exchange experiences with the Czech Republic in topics such as accelerating coal phase-out in energy supply, hydroelectric power generation, waste-to-energy, biofuel, CCUS technology, smart grids, and other issues.

During the meeting, Minister Richard Brabec, who was accompanied by Ambassador of the Czech Republic to Indonesia, Deputy Minister of Trade and Industry, President of Czech Confederation of Industry, offered cooperation related to sustainable mining technology and decarbonization of energy supply. The Czech delegation also presented their experience and expertise in geological survey and mapping.

Richard said that the Czech Republic and Indonesia share similarities in facing the challenges in energy supply, especially when it comes to net zero emissions. In the 1990s, Czechia energy supply almost entirely came from coal. However, with the presence of global commitment, the Czech Republic will reduce emissions by 38% from the energy sector by 2030 in order to achieve net zero emissions by 2050 together with other EU member countries.

The offer conforms to the current strategies drawn up by the Ministry of EMR, such as massive development of NRE, cessation of coal power plant operations in 2058, operation of combined power plants in 2054, conversion of diesel power plants to NRE power plants, implementation of Carbon Capture and Storage or Carbon Capture, Utilization, and Storage (CCS/CCUS), increased use of electric vehicles by 2030 (2 million cars and 13 million motorcycles) as well as transmission interconnection and smart grid development.

'It is an honor for me to attend this bilateral meeting on energy and mineral resources. We are ready to collaborate with any entities and the private sector to optimize the energy transition and create mining business opportunities with added value in Indonesia,' Arifin concluded.

During the visit, several Czech companies presented the potential for cooperation in the energy sector and its supporting industries, for example by forming a joint venture for photovoltaic solar industry in Indonesia.

To follow up on the various collaboration potentials, at government-to-government (G-to-G), private-to-private (B-to-B), and government-to-private (G-to-B) levels, the Czech Ministry of Trade and Industry offered to establish a Working Group on Mining, Geology, and Energy with the Indonesian Ministry of EMR. The Ministry of EMR welcomes the offer and will follow up with talks at the technical level. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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