Indonesia’s Minister of Energy and Mineral Resources and International Energy Agency (IEA) Executive Director have finalized the launch of a new joint project on electricity and renewable energy to advance energy transitions.
The project will focus on optimizing the design and implementation of a new flagship scheme to encourage private investment in renewable power sources as well as strategies to enhance renewables integration and power system operation. The work will be carried out in partnership with the Indonesian national power utility PT Perusahaan Listrik Negara (PLN Persero).
The Indonesian government has sought to tackle the immediate health and economic impacts of the Covid-19 pandemic through a variety of fiscal stimulus and policy measures. Although the energy sector has been severely impacted by the crisis, energy has also been an important part of the government’s response. This has included the provision of free or discounted electricity to 33 million of the most vulnerable families in the country.
The energy sector – a key driver of economic growth and dynamism – has a critical role to play in supporting recovery from the Covid-19. Indeed, reflecting this, the Indonesian government has ambitious plans to significantly scale up investments in renewable energy and to enhance the operation of its electricity sector.
As the IEA has highlighted since early in the current crisis, developments in energy markets and ambitious recovery efforts by governments present policymakers with a once-in-a-lifetime window of opportunity to reshape energy systems for decades to come. In doing so, they can put global emissions into structural decline.
The collaboration on electricity and renewables is complemented by cooperation and engagement between the Indonesian Government, PLN and the IEA on a range of energy policy priorities, including electric vehicle regulation, electricity system investment, and ways to reduce energy imports.