ASIATODAY.ID, JAKARTA – Investment in the new and renewable energy sector in Indonesia is showing positive growth.
Until June 2024, investment realization reached US$0.565 billion or around 45.9% of the annual target of US$1.232 billion. The geothermal sector and various new and renewable energies are the largest contributors to this investment.
It is recorded that Geothermal has contributed US$0.64 billion to the state treasury, followed by various renewable energies US$0.512 billion, Bioenergy US$0.064 billion, and Energy Conservation US$0.016 billion.
This increase in investment is driven by various factors, including government policies that support the development of renewable energy, large market potential, and public awareness of the importance of clean energy.
Even though there are positive achievements, the inclusion of renewable energy in the national energy mix is still relatively slow, estimated at only around 13-14% in 2025.
“In 2025 the mix will only be 13-14%. The reason is because of our infrastructure, and there are still bottlenecks,” said Minister of Energy and Mineral Resources, Arifin Tasrif, quoted Monday, August 5 2024.
Until the first semester (January – June) of 2024, the additional installed capacity of New and Renewable Energy Power Plants has reached 217.73 Mega Watt (MW) or around 66.6% of the annual target of 326.91 MW.
This capacity increase is dominated by hydro and solar power plants. The hydro power plant succeeded in achieving 66.4% of the target, while the solar power plant even exceeded the target with an achievement of 147.02%. Even though geothermal power plants have not yet reached the target, other renewable energy sectors such as bioenergy have also shown positive development, namely 43.2% of the target.
According to Minister Arifin, one of the main challenges is limited infrastructure and regulations that do not fully support the development of renewable energy.
“That’s why we have to carry out programs to encourage demand. For example, Electric Vehicles (EV) continue to be accelerated and then solar power plants for industry and housing must be encouraged,” explained Arifin.
In the midst of these challenges, there are several positive developments that should be appreciated. One of them is an increase in the Domestic Component Level for renewable energy power plant components which reached 49.80%, close to the target of 55.45%.
Apart from that, the development of renewable energy power plants also contributes to reducing greenhouse gas emissions by 123.22 million CO2. With more and more energy produced from renewable sources, CO2 emissions from the energy sector can be reduced significantly. (ATN)
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