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G20 and national energy program

The G20 hosted for the first time an Energy Ministers Meeting in Istanbul, Turkey, on Oct

William Sabandar (The Jakarta Post)
Jakarta
Thu, October 8, 2015

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G20 and national energy program

T

he G20 hosted for the first time an Energy Ministers Meeting in Istanbul, Turkey, on Oct. 1-2. The meeting discussed and confirmed the commitment of G20 countries, who hold 80 percent of the global economy, to promote inclusive collaboration in addressing the challenges of energy security and sustainability today and in the future.

The ministers meeting translated the G20 Principles on Energy Collaboration, endorsed by G20 leaders at the summit in Brisbane last year, into actionable commitments through consideration of: energy access; global energy institutions; market transparency; energy security; rationalization of inefficient fossil fuel subsidies; energy efficiency; renewable energy; innovative energy technologies; and effective action to tackle climate change.

The priority of energy-related actions today is to provide energy access to more than 1.1 billion people who live without access to electricity and 2.9 billion people who still rely on the traditional use of biomass for cooking.

It is timely, then, that this G20 commitment, on providing access to energy for all, can support the 2030 Agenda for Sustainable Development Goals on Sustainable Energy for All (goal number 7).

As mandated by the President Joko '€œJokowi'€ Widodo government, energy sovereignty is one among key priorities in the National Development Action Plan 2015-2019.

The first challenge of the country is to reach the remaining 15 percent of the population, mainly living in remote areas, who still have no access to electricity. Some of the places are not even possible to reach by any modern mode of transportation, far less be connected to state electricity firm PLN'€™s central grid.

The solution is to find and generate local energy resources from water, sun, wind or even the ocean, and to empower the community to develop and manage its energy needs. To this end, the government has recently launched a national rural electrification program to overcome the challenge of energy access for all and to achieve this through a sustainable solution.

The next challenge is to provide sufficient energy to promote national economic growth. The national electricity program of 35,000 megawatts is the solution to maintain a 7 percent economic growth rate through to 2020. This will require a capacity much greater than what PLN can deliver.

The role of the private sector, therefore, becomes important and, to attract private-sector investment, a more supportive national policy framework is being created.

This national policy framework must emphasize sustainability if we are to achieve energy security for the future and a reduction of the negative impacts of the provision of energy on community health and the environment.

Indonesia has taken an important step since the beginning of President Jokowi'€™s period to rationalize and reduce fossil fuel subsidies. This has created significant fiscal space for the productive development of programs for infrastructure, health and education. Some of these funds also need to be used for achieving sustainable energy for all.

Indonesia has also embarked on a national effort to accelerate the development of renewable energy. A giant leap is needed if Indonesia wants to achieve a 25 percent mix of renewable energy by 2025. Currently, only 6 percent of the primary energy mix has been achieved.

A special task force has been set up and, through its renewable energy investment forum, some US$10 billion has been generated within its first year. These developments are in five areas of renewable energy: geothermal, solar, wind, hydro and bioenergy.

A national campaign on energy conservation will be launched in November this year. The program is equipped with more than 1,000 energy facilitators and managers that will guide the country in its energy conservation program.

Energy has become a significant element of our Intended Nationally Determined Contribution (INDC). We are committed to achieve 25 percent use of renewable energy by 2025 and to promote clean-energy technology.

It is not a coincidence that the G20 agenda on energy is aligned with recent developments in Indonesia. The reform path now in place here in Indonesia is the right way to achieve sustainable and equitable energy development.

The issue is how Indonesia moves this agenda into implementable actions that reach the people and support economic growth.

The International Energy Agency (IEA) has cited Indonesia as a good example of how to create a national energy policy and plan. This is appreciated, and we should share our experience with our regional neighbors and the world in an effort to further stimulate a more equitable exchange of clean-energy technology.

Policies regarding traditional sources of energy, coal, gas and oil, are concerned about the fuel itself, whereas renewable-energy policies are not concerned about the source of the energy, which is free, but the technologies that capture it.

For this and other reasons, innovative policy frameworks are required and the trade or transfer barriers that prohibit countries from modern technologies need to be reformed.

Indonesia needs to be more active in the international forum on energy. Indonesia has just rejoined the Organization of the Petroleum Exporting Countries (OPEC), and in November Indonesia will join the IEA.

This multilateral front will give Indonesia an opportunity to play a leadership role in global and regional energy diplomacy which, in return, will strengthen its energy program and promote energy investment in the country.

In the end it is about fairness and sustainability. And Indonesia is in the right position to move forward its ongoing national program and experience and to participate within the global effort to address energy challenges, like what the G20 is doing right now.

We will together then enjoy the maximum benefit of equitable energy security.
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The writer is senior advisor to the energy and mineral resources minister. The views expressed are his own.

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