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The Ministry of Energy and Mineral Resources (ESDM) in Indonesia has emphasized the urgent need for increased investment to achieve its ambitious target of sourcing 23% of its energy mix from new and renewable energy (EBT). As of the first half of 2024, EBT’s contribution to the energy mix stands at 13.93%, with a target of 19.5% by the end of the year.
Eniya Listiani Dewi, Director General of New, Renewable Energy and Energy Conservation (EBTKE), highlighted the crucial role of investment and infrastructure development in meeting this target. “Investment remains a critical area that has yet to be fully realized, along with the commitment to execute these investments and develop necessary infrastructure. We need clearer achievements in these areas,” Eniya stated during a media briefing on September 9.
As of the first semester of 2024, EBTKE has secured investments totaling USD 580 million, representing 46.8% of the 2024 target of USD 1.23 billion. To meet the goal of adding 8,224.1 Megawatts (MW) of renewable energy capacity by 2025, an additional USD 14 billion is required. This funding will support various renewable energy projects, including biomass, biogas, geothermal, hydro, and battery storage.
To address investment challenges, Eniya noted the recent introduction of the Domestic Component Level (TKDN) regulation under Ministerial Regulation Number 11 of 2024. This regulation aims to streamline investment processes by addressing previous hurdles related to domestic content requirements.
“The TKDN regulation is a significant breakthrough for overcoming investment issues in the EBT sector. This new regulation has already started to drive investment forward,” Eniya explained. She pointed to several ongoing EBT projects that have progressed since the regulation’s introduction, including Floating Solar Power Plants (PLTS) in Singkarak and Saguling, and geothermal power plants in Hululais, Dieng, Dieng 2, and Patuha 2.
The Ministry remains committed to accelerating investment and infrastructure development to achieve its renewable energy targets and foster a sustainable energy future for Indonesia. |
