Elrika Hamdi

The Asian Development Bank (ADB) has approved a $500 million policy-based loan to support Indonesia’s energy transition. The ADB’s support is being implemented through the Affordable and Sustainable Energy Transition Programme, with co-financing partners, Agence Française de Développement (AFD) and German Development Cooperation through KfW, also on board. “Indonesia is at a critical juncture in its energy transition journey,” said Jiro Tominaga, ADB Country Director for Indonesia. “This policy-based loan programme supports Indonesia’s foundational and collaborative policy development to identify and address the sector’s complex challenges to accelerate its shift towards sustainable and clean energy.” While Indonesia has expanded its electricity generation capacity, it remains dependent on fossil fuels such as coal, gas, and diesel. The programme aims to address this through the development of a robust policy and regulatory framework for clean energy transition, improving sector governance and financial sustainability, and ensuring a just and inclusive transition. Key initiatives include the Comprehensive Investment and Policy Plan (CIPP), developed in collaboration with the Indonesia Just Energy Transition Partnership. The plan outlines the investment needs and opportunities for achieving a just energy transition. Other measures focus on scaling up renewable energy capacity and enhancing the capacity and governance of energy state-owned enterprises, including the promotion of gender equality. #cleanenergy

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ADB approves $500 mln loan for Indonesia's energy transition efforts Summary: The Asian Development Bank (ADB) has approved a $500 million policy-based loan to support Indonesia's energy transition efforts. This loan is part of a broader strategy to help the resource-rich nation, which aims to achieve net-zero carbon emissions by 2060, reduce its heavy reliance on coal. The program focuses on creating a solid policy and regulatory framework for the clean energy transition, enhancing governance in the energy sector, and ensuring financial sustainability. Indonesia is at a critical point in its energy transition journey, and the ADB loan is designed to support the country's policy development rather than targeting any specific project. The loan will help Indonesia implement its Just Energy Transition Partnership (JETP) plan, which aims to limit power sector emissions to 290 million metric tons of carbon by 2030. JETP has already pledged $20 billion for this purpose, though the disbursement of funds has been slow. In addition to the ADB, co-financing partners for this program include France’s Agence Française de Développement (AFD) and Germany’s state-owned KfW Bank. Britain’s development minister, Anneliese Dodds, highlighted the importance of this long-term partnership, noting that the transition to green growth and economic development will take time, but is essential for both poverty alleviation and environmental sustainability. #EnergyTransition #IndonesiaNetZero #ADBLoan #CleanEnergy #JETP #SustainableDevelopment #CoalReduction #GreenGrowth

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Indonesia is aiming to push forward the just energy transition agenda in the second Indonesia-Africa Forum (IAF) amid rising protectionism over resources needed to mitigate and adapt to the impacts of the climate crisis. The forum, slated for 1-3 Sept in Bali, will see discussions between representatives of governments, business entities and international organizations about potential economic cooperation between Indonesia and African countries. Read more >> https://lnkd.in/gFehbpn3 Register Now to our event "Analyzing Credit Risks, Climate Trends, and Market Insights in Metals" with S&P Global Market Intelligence >>> https://lnkd.in/gpp2aFGV Join 4000+ Mining professionals as individual members, you will receive a member rate to attend networking events, Industry event promo and weekly updates on mining industry-related content via our newsletter! Apply to become a member >>> https://lnkd.in/gdndprB7 #djakartaminingclub #EnergyTransition #ElectricVehicles #EVs #IndonesiaAfricaForum #SustainableEnergy #MiningNews #GlobalPartnerships #CleanEnergy #FutureOfTransport #GreenTechnology

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Policy gaps challenge Indonesia’s $146B investment goal for #renewableenergy To meet its #2030renewableenergytarget, #Indonesia requires an investment of $146 billion from the private sector. With its abundant #solar and #hydro resources, Indonesia is positioned to harness its full #renewableenergy potential. However, several policy and regulatory challenges must be addressed to attract the necessary investments and drive progress. #renewableenergy #solar #hydro #investment #sustainability #Indonesia #policy https://lnkd.in/gN2eiXAh

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“We can see that most #ASEAN countries have a plan to reach net zero emission (in the next 30 to 40 years) … they have a clear target to reach carbon neutrality,” said Fabby Tumiwa, executive director of the Jakarta-based Institute for Essential Services Reform (IESR). Tumiwa said like most growing APEC economies, ASEAN members want to boost their economies but with “less intensive carbon emissions”. He said this is why ASEAN countries plan to develop more renewable energy to reduce dependence on fossil fuels and gradually phase out coal plants.   However, the progress of renewable energy production across Southeast Asia is uneven. #APEC2024

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The Indonesian government has revised local content requirements (LCR) for electricity infrastructure under Ministry of Energy and Mineral Resources Regulation 11 of 2024 (MEMR 11/2024). This change aims to attract concessional funding for renewable energy projects from international development banks. With a goal of achieving a 23% renewable energy mix by 2025, Indonesia needs about US$167 billion in investments. The relaxed LCR is expected to enhance foreign investment and expedite funding from initiatives like the Just Energy Transition Partnership (JETP). While LCRs were originally designed to support domestic industries, slow local supply chain development has hindered growth and discouraged investment. By easing these requirements, Indonesia seeks to overcome these challenges and stimulate its renewable energy sector. Success will depend on effective implementation by PLN and stakeholders in future agreements, ensuring a balance between promoting local industries and providing high-quality, cost-effective solutions. The government may also need to introduce additional policies to support local capabilities alongside attracting foreign investment. https://lnkd.in/giVQ3bb2

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Prabowo's ambitious plan on energy transition may drive Indonesia into social & environmental disaster. We all know, Indonesia need to accelerate energy transition to phasing out fossil fuel era and moving to the clean and sustainable energy, but instead of we put our focus on renewable based energy, Indonesian government even busier finding solution on prolonging fossil, extracting land based fuel and promoting nuclear energy. Where developed countries has been abandoned nuclear power plant and deployed more renewable like solar, wind and hydro, Indonesia are just starting to build this 3rd generation technology. Based on study, we don't have enough fuel reserve to ignite 1 GW Nuclear power plant for more than 7 years. And learning from Fukushima tragedy, we don't have enough capabilities to manage radioactive waste properly and financially if the disaster happens. Explore more the reason behind this position on South China Morning Post SCMP article here

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💣 An Asian Development Bank (ADB) project to promote "clean energy" could be funding the expansion of Southeast Asia's biggest coal complex, despite the bank's “no coal” commitment. New research shows that the Bank’s $600m loan to Indonesian state utility PT PLN (Persero) can support any activity in PLN’s business plan, including the expansion of the Suralaya coal complex with the addition of two new units, Java 9 and 10. Pollution from the Suralaya complex and other nearby coal plants kills an estimated 2500 Indonesians per year and causes numerous health problems, including respiratory disease and cancer. Communities affected by Java 9 and 10 are calling on ADB to support their calls for remedy and for the project to be cancelled, phased out early, or at the very least brought into compliance with international standards. 👀 These findings raise severe questions about the seriousness of the ADB's “no new coal” pledge, which we'll be taking to the Bank's AGM in Tbilisi next week (2-5 May). Read the full report, published today with Inclusive Development International, Trend Asia and NGO Forum on ADB: https://lnkd.in/dFTnfqgz #coal #fossilfuels #climatecrisis

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A new IEEFA commentary found that despite PT Perusahaan Listrik Negara's (#PLN) net profit increase of IDR22 trillion (tn) in 2023, it would have recorded a significant loss of IDR120tn without government subsidies and compensations. IEEFA's Mutya Yustika presented the factors affecting the financial situation of PLN, Indonesia’s national electricity utility: ⏺ PLN's financial performance heavily depends on the Government of Indonesia’s subsidies and compensations, which have risen by 16.4% from IDR123tn in 2022 to IDR143tn in 2023. ⏺ In 2023, purchased #electricity from coal and #gas contributed to a 14% increase in operational expenses and accounted for 63% of total operating costs. ⏺ PLN’s exposure to US$-denominated #coal prices led to struggles with price fluctuations due to exchange rate changes. While purchases are denominated in US$, PLN’s tariff collections are in Indonesian rupiahs. ⏺ Shipping and plant maintenance costs also contributed to the fiscal situation. As coal-fired power plants age, they lose efficiency and require more coal to produce each kilowatt hour of electricity. She emphasized that #renewableenergy sources are low-cost to operate compared to #fossilfuel power plants and PLN should accelerate the transition from fossil fuel-based #energy to avoid price volatility. “The gradual retirement of coal-fired power plants and a concerted transition to renewable energy sources will be a win-win solution for #Indonesia to fulfill its Paris Agreement commitments and financial goals.” #energytransition https://lnkd.in/gW42aDSt

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Is AZEC Truly Guiding ASEAN Towards a Clean Energy Future? At the August 2024 AZEC Advocacy Group Round Table in Jakarta, discussions centred on achieving net-zero emissions across ASEAN. The development of a Memorandum of Understanding (MoU) aimed at advancing zero-carbon systems holds potential. But are these policy discussions and MoUs actually driving change? While ERIA President Tetsuya Watanabe emphasised the importance of policies that balance decarbonisation with economic growth, the region’s heavy dependence on fossil fuels casts doubt on whether these frameworks can realistically transition ASEAN to renewable energy in time, or if they remain aspirational. With initiatives like the AZEC Sectoral Initiative focusing on key industries, it raises the question: Is ASEAN truly shifting towards a cleaner energy future, or do fossil fuels still dominate the agenda? Uncover more insights here: https://bit.ly/4e3dunT #AZEC #NetZero #CarbonNeutrality #EnergyTransition #CleanEnergy #Decarbonisation #ASEAN #Sustainability #PolicyLeadership #RenewableEnergy

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Accelerating Energy Transition: The Role of Collaboration  Southeast Asia and South Asia face intertwined energy challenges:   ⚡ Limited access to affordable, reliable energy sources   🌍 A pressing need for sustainability to combat climate change   📈 Rapidly growing energy demand  The Green South Alliance – Energy Transition (Indonesia Chapter) will bring together parliamentarians, policymakers, private sector leaders, experts, and funders to form a coalition that bridges gaps in technology, finance, and expertise.  Through a daylong dialogue, we’ll address:   ✅ Common roadblocks in the energy transition   ✅ The role of regulation and policy   ✅ Role of the private sector in fuelling innovations for transition Together, we can unlock solutions that ensure a just energy transition for both regions. Let’s shape a greener future, one partnership at a time! 🌿   Sunita Baral Mercy Chriesty Barends Rwitwika Bhattacharya uma Bhattacharya kumar Abhishek #JustTransition #EnergyAccess #ClimateAction #Partnerships

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PLN Calls On Green Startups Across Asia To Power Regional Energy Transformation Indonesia’s state-owned power company, PT PLN (Persero), is inviting startups from across Asia to join its efforts in advancing sustainable energy through the Connext Powered by PLN program. This initiative aims to help PLN become a more innovative and adaptable energy provider as it works toward achieving net-zero emissions. The program also strengthens PLN’s role in the Asia-Pacific startup ecosystem, encouraging collaboration and growth. To kick off the initiative, representatives from PLN visited Japan for a week in October 2024. Japan was chosen due to its ambitious Startup Development Five-Year Plan, which aims to establish 100 unicorns, 100,000 startups, and […] Read the full story here: https://lnkd.in/dypHQfQW #solarenergy #alternativeenergy #solarpv #pvsolar #photovoltaic #cleanenergy #cleantech #climatechange #asia #economicgrowth #energyecosystem #energystorage #pln #renewableenergy #solarenergy #sustainableenergy

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🔌𝐈𝐄𝐄𝐅𝐀: 𝐏𝐨𝐰𝐞𝐫 𝐰𝐡𝐞𝐞𝐥𝐢𝐧𝐠 𝐜𝐚𝐧 𝐝𝐫𝐢𝐯𝐞 𝐜𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬 𝐚𝐧𝐝 𝐚𝐝𝐯𝐚𝐧𝐜𝐞 𝐈𝐧𝐝𝐨𝐧𝐞𝐬𝐢𝐚’𝐬 𝐫𝐞𝐧𝐞𝐰𝐚𝐛𝐥𝐞 𝐞𝐧𝐞𝐫𝐠𝐲 𝐠𝐨𝐚𝐥𝐬 A report from Institute for Energy Economics and Financial Analysis (IEEFA) suggest that power wheeling could be a game-changer for corporate investments and #Indonesia's renewable energy targets. This mechanism allows private companies to sell renewable electricity directly to consumers via the its state-owned firm PT PLN (Persero)'s grid. #Vietnam and #Malaysia have already embraced similar schemes, attracting major investments from global tech giants. Indonesia, with its significant solar potential and rapidly growing digital economy, could follow suit. However, challenges remain. How to balance all stakeholders' interests? Can power wheeling be a win-win solution? 🔍 Read the full analysis: https://lnkd.in/eBepVsxV 🤔 What are your thoughts on the opportunities and challenges of power wheeling in Indonesia? 💬 Share your insights in the comments! #RenewableEnergy #Sustainability #CleanEnergy #EnergyTransition #SolarEnergy #GreenTech #IndonesiaBusiness #ASEANBusiness #EnergyPolicy #SmartGrid #PowerGeneration #InvestInIndonesia #DigitalEconomy #EnergyInnovation #CorporateSustainability #PetromindoInsights #IEEFA #PLN

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The #JETP's financial structure relies heavily on debt, posing repayment challenges for Indonesia and Vietnam. Key concerns include short-term financing constraints, limited MDB financing in Vietnam, and the affordability gap in transitioning from coal to renewable energy. some takeaways.... Overcoming #Indonesia and #Vietnam Financing Constraints Indonesia's commercial institutions face significant challenges with long-term financing. With only 8% of bonds extending beyond 10 years, the development of large-scale energy projects is significantly hampered. This limitation poses a substantial hurdle for the country's growth and its ambitions in the energy sector. According to industry experts, finding solutions to extend financing terms is crucial for Indonesia's future development. In Vietnam, government policies that restrict public debt make it difficult for state-owned enterprises to secure the necessary loans for growth. Only 3% of financing comes from Multilateral Development Banks (MDBs), highlighting a major obstacle in the country's financial landscape. Transitioning to renewable energy is a vital goal for ASEAN, but it remains less competitive than coal, affecting energy affordability across the region. This cost disparity presents a significant challenge for #ASEAN countries striving to adopt cleaner energy sources. Energy specialists argue that finding ways to make renewable energy more affordable is essential for the region's sustainable development. Developing countries must implement targeted incentives or subsidies to protect vulnerable groups during the energy transition. These mechanisms are essential for ensuring equitable access to energy. The shift to renewable energy could exacerbate social inequalities and leave vulnerable populations behind. Effective monitoring and evaluation processes are crucial to avoid financial distress and ensure progress in energy projects. Without these processes, sustainable development goals remain out of reach. Recommendations for Moving Forward 1. Establish Clear Criteria: Define criteria for nations to join JETP, enabling more ASEAN member states to benefit. 2. Effective Planning and Realignment: Align investor and government expectations to ensure loan repayment and national objective alignment. 3. Coordination and Standards: Set monitoring and evaluation standards and coordinate across ministries to address national priorities. 4. Reassess Project Financing: Reevaluate financing if increased debt and slow progress occur to seek a better energy transition scheme. #SustainableFinance #RenewableEnergy #EnergyAffordability kudos Indira P. | Irdina Batrisyia Binti Riza Adami ASEAN Centre for Energy | The ASEAN Secretariat | Asian Development Bank (ADB) | World Economic Forum | The World Bank https://lnkd.in/gb38zbmD

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BREAKING : The Energy Commission of The Indonesia House of Representative unanimous all 8 parties that was present approved the NEW National Energy Policy last night (07/09/24) and the next step is for the President to sign into law. --This is the policy to get Indonesia into net-zero by 2060 with coal phase out plan and more renewable ALSO NUCLEAR !. After 3 decade back-and-forth, nuclear finally in the policy to be implemented operating the first nuclear power plant by 2032 the latest and 54 GW by 2060 #nuclear #indonesia #energy Picture : Minister of Energy (with Batik in the center) and all his 1st echelon to his left and to his right the National Energy Council member.

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⚡ Building on our earlier work on overcoming financing barriers for decentralized renewable energy in Eastern Indonesia, CPI has conducted follow-up research with four case studies of renewable energy projects in East Nusa Tenggara and East Kalimantan. Switching from fossil fuels to renewable energy is key for reducing carbon emissions and promoting sustainable economic growth. 🌱 Indonesia’s National Energy Policy and Enhanced NDC targets highlight the need for an inclusive energy transition. However, there are obstacles preventing private investment in small-scale renewable energy projects. 🎯 Discover how Indonesia can overcome these barriers to meet its targets: https://lnkd.in/gXg8rJNf #renewablenergy #EnhancedNDC #Indonesia #climatechange #climatefinance #netzero

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Indonesia to facilitate grid access for independent power producers Summary: The Indonesian Government plans to legislate a standard that allows private companies to supply electricity to consumers using state-owned company PLN's grids. This initiative aims to boost renewable energy development in a country where fossil fuels currently dominate the power industry. In 2023, fossil fuels accounted for 81% of Indonesia's power generation, with coal-fired power plants contributing 62% due to abundant coal reserves. Indonesia's power industry is highly carbon-intensive, producing more CO₂ per kilowatt-hour than many other Asia-Pacific countries. Key Points: Legislation and Grid Access: New legislation will permit private companies to supply electricity using state-owned grids, facilitating the growth of renewable energy. This move aims to reduce Indonesia's reliance on fossil fuels and lower the carbon intensity of its power sector. Current Energy Landscape: Fossil fuels accounted for 81% of Indonesia's power generation in 2023, with coal-fired plants being the primary source. Indonesia is the third-largest coal producer globally and has been rapidly constructing coal-fired power plants, adding 17.2 GW of capacity between 2018 and 2023. Environmental Impact: Indonesia's power industry emits 682 grams of CO₂ equivalent per kilowatt-hour, higher than China and Vietnam. The country ranks fourth in Asia-Pacific for greenhouse gas emissions from the power sector. Renewable Energy Potential: Providing grid access to private renewable energy producers can make Indonesia's power industry less carbon-intensive. The state-owned company PLN will need to upgrade grid infrastructure to support large-scale renewable energy implementation. Global Trends: Worldwide, the capacity of newly launched renewable energy projects increased significantly from 188 GW in 2019 to 473 GW in 2023. Investments in power grid construction rose from $310 billion to $374 billion during the same period, reflecting the growing emphasis on renewable energy. Conclusion: Indonesia's new legislation to facilitate grid access for independent power producers is a crucial step towards decarbonizing its power industry. By enabling private companies to contribute to the renewable energy supply, Indonesia can reduce its carbon footprint and align with global trends in renewable energy development. #Indonesia #RenewableEnergy #GridAccess #CarbonReduction #FossilFuels #CoalPower #Sustainability #EnergyPolicy #ClimateAction #GreenEnergy #PLN #EnergyTransition https://lnkd.in/guFR2ics

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