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The Indonesian government has been collaborating with Norway on energy initiatives since 1995. As part of this ongoing cooperation, the Ministry of Energy and Mineral Resources hosted the Indonesia-Norway Bilateral Energy Consultation (INBEC) meeting. This partnership aims to boost investment by leveraging regional potential to tackle the challenges of the energy transition. “Since our last Bilateral Energy Consultation in 2022, the energy sector has seen significant international and national developments to address the energy transition,” said Acting Director General of Oil and Gas Dadan Kusdiana during the INBEC meeting’s opening session on Monday, July 1. “Indonesia has made strides in both the New and Renewable Energy sector and the Oil and Gas sector.” Dadan highlighted Indonesia’s commitment to global emission reduction, noting that the country increased its emission reduction target from 29% to 32% as part of its Enhanced Nationally Determined Contribution (E-NDC) declared at COP27. The energy sector’s contribution to emission reduction is set to rise from 314 million tons of CO2 to 358 million tons of CO2e by 2030. In 2023, Indonesia achieved an emission reduction of 123.2 million tons of CO2e, surpassing the target of 116 million tons of CO2e. This progress was primarily driven by the development of new and renewable energy sources and the implementation of energy efficiency measures. “Indonesia aims to achieve Net Zero Emission (NZE) by 2060 or sooner,” Dadan explained. “In the energy sector, this will be accomplished through diversification, conservation, and decarbonization efforts.” Dadan also emphasized the role of biofuels as an alternative to fossil fuels in Indonesia. Biofuels, derived from renewable energy sources, produce fewer greenhouse gas emissions than traditional fossil fuels, helping to reduce fuel imports and enhance energy security. “Indonesia has been a pioneer in biodiesel utilization for over 17 years,” Dadan said. “Since February 1, 2023, we have implemented B35 biodiesel nationwide. In 2023, biodiesel utilization reached over 12.2 million kL, yielding economic benefits of up to 15.82 trillion rupiah and projected savings of more than 120 trillion rupiah.” In the oil and gas sector, the Indonesian government is committed to reducing greenhouse gas emissions through Carbon Capture and Storage (CCS) and Carbon Capture Utilization and Storage (CCUS) technologies. “Indonesia possesses significant CO2 storage potential, totaling 577.6 Giga Tons, with 4.8 Giga Tons in Depleted Oil and Gas Reservoirs and 572.8 Giga Tons in Saline Aquifers,” Dadan added. “This potential is distributed across Sumatra, Java, Kalimantan, and Papua.” Dadan also acknowledged the suitability of Norwegian technology for Indonesia, particularly in Floating Solar Power Plants and Hydroelectric Power Plants. He expressed gratitude to Norway for sharing expertise and experience in CCS/CCUS business processes and regulations. |
