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Indonesia misses green energy mix target in 2020
The government data show that the contribution of green energy to Indonesia’s total energy consumption rose from 9.15 percent in 2019 to 11.51 percent last year, but fell short of the targeted 13 percent.
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Powered by the sun: Students and teachers take a look at a solar farm at SMP 9 state junior high school in Jakarta. The school is one of the few that use the renewable source of energy in the capital city. (JP/Ricky Yudhistira)
G
reen energy played a proportionally bigger role in Indonesia last year but still fell short of the government’s expectations as the COVID-19 pandemic hit demand and investments.
Energy and Mineral Resources Ministry data show that the contribution of green energy to Indonesia’s total energy consumption rose from 9.15 percent in 2019 to 11.51 percent last year but still fell short of the targeted 13 percent.
The ministry’s renewables director general, Dadan Kusdiana, attributed the rising portion of renewables to new green power plants that came online last year and to higher consumption of 30 percent palm oil-mixed biodiesel (B30).
Progress was, however, limited by an investment shortfall. Indonesia captured US$1.36 billion in green energy investments in 2020. The figure is 2.9 percent below the $1.4 billion recorded in 2019 and only 60 percent of the targeted $2.3 billion for 2020.
“Investments are slightly below target. The number is 70-ish percent. This is actually pretty good during a pandemic,” said Dadan at a virtual press conference on Jan. 14.
In comparison, global investments for green power plants and fuels are expected to fall 4.1 percent year-on-year – sharper than Indonesia’s decline – to $330 billion in 2020, based on the International Energy Agency’s (IEA) estimate in October 2020.
Indonesia has promised to reach a 23 percent green energy mix by 2025, yet the coal-rich and oil-dependent country is struggling to fulfill the promise with many studies predicting that Southeast Asia’s largest economy will miss the target.
