Indonesia's emmission reduction target
Energy Law No. 30/2007 stipulates that the objectives of the national’s energy management among others aims to achieve energy independence and energy security. The energy Law also states that all energy resources including renewable energy (sumber energy terbarukan) shall be controlled and managed by the state/GOI for nation’s well being in accordance with laws and regulations. The Energy Law defines renewable energy as energy generated from energy resources that are sustainable if managed properly, among others are geothermal, wind, bioenergy, solar, hydropower, and ocean’s tidal energy.
Indonesia, based on the document of the Intended Nationally Determined Contribution (NDC) in 2015, had communicated its reduce emission target which was 29% unconditionally in year 2030, than in a business as usual scenario; or 41% under the condition of international assistance, as informed by the Indonesia’s President during United Nations Climate Change Conference on 12 December 2015 in Paris (COP 21).
Under the spirit of such determination, the Government of Indonesia (GOI) issued President Regulation No.22/ 2017 dated 02 March 2017 on the National Energy Plan (Rencana Umum Energi Nasional/ “RUEN”) for the period up to year 2050, elaborating some plans to develop renewable energy power to reach at least 23% of total energy supply with capacity about 45,2 GW by 2025 and at least 31% of total energy supply with capacity about 167,7 GW by 2050.
Further, during the UN Climate change Conference (COP 26) on 31 October-13 November 2021 in Glasgow UK, Indonesia had announced to reach net zero emissions by 2060. In order to reach such ambitious objective, the Indonesian Ministry of Energy and Mineral Resources (MEMR) in collaboration with the International energy Agency (IEA) on 02 September 2022 has unveiled the Indonesia Net Zero Emission (NZE) Roadmap for the energy sector of 2060 at Energy Transition Ministerial Meeting (ETMM) in Bali. Based on both MEMR and IEA’s analysis as stated in the Roadmap find that the net zero target is achievable through deployment of renewable energy resources, energy efficiency, electrification and grid interconnection.
To achieve the emission reduction target, GOI also issues Presidential Regulation No. 112 of 2022 on Accelerated Development of Renewable Energy for Electricity Supply (“PR 112”) which was effective on 13 September 2022. PR 112 among others stipulate:
Furthermore, as agreed on COP 26, the Parties of the Paris Agreement including Indonesia has revisited and strengthen the targets to prepare the coming UN Climate change Conference (COP 27) on 6-18 November 2022 in Sharm el-Sheikh, Egypt, and has already submitted an Enhanced Nationally Determined Contribution (NDC) to the UNFCCC Secretariat by 23 September 2022 with increased emission reduction target to 31.89% (from previously 29%) unconditionally and to 43.20% (from previously 41%) conditionally.
Disclaimer: This article is intended as general information only and it does not constitute a legal advice. We accept no responsibility for any loss that may arise from reliance on this information. Please contact us if you need full legal advice.
Indonesia, based on the document of the Intended Nationally Determined Contribution (NDC) in 2015, had communicated its reduce emission target which was 29% unconditionally in year 2030, than in a business as usual scenario; or 41% under the condition of international assistance, as informed by the Indonesia’s President during United Nations Climate Change Conference on 12 December 2015 in Paris (COP 21).
Under the spirit of such determination, the Government of Indonesia (GOI) issued President Regulation No.22/ 2017 dated 02 March 2017 on the National Energy Plan (Rencana Umum Energi Nasional/ “RUEN”) for the period up to year 2050, elaborating some plans to develop renewable energy power to reach at least 23% of total energy supply with capacity about 45,2 GW by 2025 and at least 31% of total energy supply with capacity about 167,7 GW by 2050.
Further, during the UN Climate change Conference (COP 26) on 31 October-13 November 2021 in Glasgow UK, Indonesia had announced to reach net zero emissions by 2060. In order to reach such ambitious objective, the Indonesian Ministry of Energy and Mineral Resources (MEMR) in collaboration with the International energy Agency (IEA) on 02 September 2022 has unveiled the Indonesia Net Zero Emission (NZE) Roadmap for the energy sector of 2060 at Energy Transition Ministerial Meeting (ETMM) in Bali. Based on both MEMR and IEA’s analysis as stated in the Roadmap find that the net zero target is achievable through deployment of renewable energy resources, energy efficiency, electrification and grid interconnection.
To achieve the emission reduction target, GOI also issues Presidential Regulation No. 112 of 2022 on Accelerated Development of Renewable Energy for Electricity Supply (“PR 112”) which was effective on 13 September 2022. PR 112 among others stipulate:
- PLN (the Indonesia’s State-Owned Power Company) shall prioritize power purchasing generated from renewable energy and develop power plants using renewable energy;
- a new coal-fired power plants (CFPP/PLTU) is prohibited unless for certain conditions/requirements and is only permitted to operate until 2050 at the longest.
- fiscal incentive and non-fiscal incentive for power developer company that using renewable energy;
- procedure to purchase power between PLN and power developer company; and
- power purchase price based on ceiling price as stipulated in Annex of PR 112 or based on agreed price between the parties, all subject to MEMR approval.
Furthermore, as agreed on COP 26, the Parties of the Paris Agreement including Indonesia has revisited and strengthen the targets to prepare the coming UN Climate change Conference (COP 27) on 6-18 November 2022 in Sharm el-Sheikh, Egypt, and has already submitted an Enhanced Nationally Determined Contribution (NDC) to the UNFCCC Secretariat by 23 September 2022 with increased emission reduction target to 31.89% (from previously 29%) unconditionally and to 43.20% (from previously 41%) conditionally.
Disclaimer: This article is intended as general information only and it does not constitute a legal advice. We accept no responsibility for any loss that may arise from reliance on this information. Please contact us if you need full legal advice.