Indonesia Aims for Renewable Energy Growth Despite Reliance on Coal

JAKARTA, RAKYAT NEWS – Minister of Energy and Mineral Resources, Bahlil Lahadalia, emphasized that Indonesia will chart its own course in achieving net zero emissions (NZE), rather than adhering to the benchmarks set by developed nations. Speaking at the Indonesia Mining Summit 2024 in Jakarta, he stated that the country’s energy transition process would align with its economic capabilities and technological readiness.

Bahlil acknowledged the global agenda to reduce carbon emissions but underlined the challenges Indonesia faces in adopting costly green energy technologies. “Until our domestic economy is strong and the costs of transitioning are affordable, we will prioritize our national interests,” he remarked.

Despite global pressure to phase out coal, Bahlil defended its ongoing role as a key energy source. According to him, coal remains competitive, affordable, and vital for Indonesia’s economic stability. “We will gradually adopt renewable energy, but for now, coal continues to be an economical and reliable energy source,” he said.

However, the minister urged coal industry stakeholders to accelerate efforts in value-added processing through downstream projects. This, he argued, would enhance domestic economic benefits and ensure the sector’s sustainability during the transition period.

Indonesia’s potential for renewable energy development is immense, Bahlil highlighted. The country boasts a theoretical capacity of 3,687 gigawatts from various sources, including solar (3,294 GW), hydro (95 GW), bioenergy (57 GW), geothermal (23 GW), wind (155 GW), and marine energy (63 GW).

In line with this potential, the government has set an ambitious target to cut greenhouse gas (GHG) emissions by 912 million tons of CO2 by 2030, as outlined in its Enhanced Nationally Determined Contribution (E-NDC). This reflects Indonesia’s commitment to contributing to global climate goals, despite its reliance on coal in the interim.