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Analysis: Govt issues RUKN to achieve NZE 2060 as court alters Job Creation Law

Tenggara Strategics (The Jakarta Post)
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Thu, January 16, 2025

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Analysis: Govt issues RUKN to achieve NZE 2060 as court alters Job Creation Law A woman fills in prepaid electricity credit in Kendari, Southeast Sulawesi in this photo taken on July 19. (Antara/Jojon)

T

he government issued the National Electricity General Plans (RUKN) 2024 – 2060 to align with the country’s net-zero emissions (NZE) target on Nov. 29, 2024, without consulting the House of Representatives. On the same day, the Constitutional Court ruled in favor of a lawsuit challenging the omnibus law on Job Creation, requiring the government to consult with the House in drafting the RUKN.

The Constitutional Court’s ruling on the RUKN was based on judicial review petitions by several electricity-sector labor unions and individuals contesting specific provisions within the Job Creation Law pertaining to the electricity sector. Out of five petitions examined, the Constitutional Court denied three and granted two, subject to several conditions.

First, the Constitutional Court underscored the necessity of the House’s involvement in preparing and establishing the RUKN, reinforcing the 2009 Electricity Law. Second, it agreed with the petitioners that an integrated approach is necessary for the provision of electricity services, encompassing generation, transmission, distribution and sales, and thus prohibiting any possible unbundling of the services of state-owned utility PLN. PLN currently operates as a single vertically integrated organization, from power generation to sales to individual customers. 

Responding to the Constitutional Court verdict, House Commission XII chairman Bambang Patijaya said the ruling on the RUKN could also affect the drafting of PLN’s long-term electricity procurement plan (RUPTL). Therefore, he said, the commission would demand explanations from the Energy and Mineral Resources Ministry about the matter. In response, the government said it would submit the RUKN to the House for consideration to align it with the national energy policy.

The RUKN 2024 – 2060 is designed to address the anticipated surge in electricity demand and align with the country’s NZE target by 2060, replacing the previous 2019 – 2038 version. The new RUKN forecasts that electricity consumption is expected to grow at an average annual rate of 3.8 percent, with per capita consumption reaching over 5,000 kWh by 2060, up from 1,700 kWh in 2024. 

To meet the demand, the RUKN sets targets for the development of more new and renewable power plants to align with NZE 2060. The RUKN sets a target for the energy mix by 2060 comprising 73.6 percent new energy and renewable energy, 26.4 percent from fossil energy and carbon capture and storage (CCS).

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The new and renewable energy in 2060 will comprise 24.1 percent new energy, 20.7 percent variable renewable energy and 28.8 percent dispatchable renewable energy. The portion of new and renewable energy will surpass fossil energy in 2044 when new and renewable energy will reach 52 percent.

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