The Future of Energy Policy in Indonesia Post-2024 Elections

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Abdullah A Afifi

Business & Public Policy Analyst
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Nor Anisa Arifin

TNB Research | SOFC Research

The 2024 elections in Indonesia encourage a new era in energy policy, with the potential for significant transformations to meet the country’s growing energy needs and environmental commitments. With the hail of the eight decades of Indonesia’s existence and the growth of energy industries and expertise, the post-2024 elections will welcome the new energy transition policy of whoever wins the elections.

This article will try to emphasise the possibility and its potential that can be optimised by the new government to support the advancement of Indonesia’s position as one of the global leaders.

Emphasizing Renewable & Green Energy

The new government should prioritize a shift towards renewable and green energy sources. This shift could be reflected in ambitious targets for renewable and green energy integration into the national grid.

Policy initiatives may focus on expanding solar, wind, and geothermal capacities, recognizing Indonesia’s abundant natural resources in these areas. For green energy, the new government should take opportunities to emphasise the potential green energy manufacturing and industries.

With the current nickel industry development progress, it will not be hard for the next 5-10 years ahead to speed up green energy research and its reliability for mass manufacturing.

Regulatory Overhaul for Green Energy & Fossil Fuel Transition

A key policy change is expected to overhaul the existing regulations to foster a more conducive environment for renewable energy investments. This could include streamlining the process for renewable energy project approvals and offering incentives like tax breaks or subsidies to attract domestic and international investors.

Recognizing the importance of the coal and oil sectors in the Indonesian economy, the government is expected to formulate policies to support workers and regions affected by the transition to renewable energy. This could include retraining programs and economic diversification strategies.

Fossil fuel will still take hold of energy production on a national scale. While green energy is a key to the development of green technology. Green technology will stimulate the productivity of small economic industries and rural areas.

Future Power Generation & Green Technology

The current research progress in green technology already makes significant findings on more efficient power generation. Technology such as Fuel Cell and Hydrogen Technology is predicted as a potential alternative for battery-powered systems – Battery Energy Storage Systems (BESS).

Fuel Cells which are modular, independent, and compact are suitable for the challenging geographical sphere of Indonesia, this situation is identical to Japan. While several local universities already started research on this technology, this opportunity is too unfortunate to be missed.

Decentralization of Energy Production & Enhancing Energy Efficiency

Decentralization will likely be a significant aspect of the new energy policy, focusing on empowering local governments and communities to develop and manage renewable energy resources. This approach aims to enhance energy security across the archipelago, particularly in remote and rural areas.

The new government is expected to implement policies promoting energy efficiency across various industrial, commercial, and residential sectors. This might involve setting stringent efficiency standards and encouraging the adoption of energy-saving technologies.

Climate Change Commitments & Carbon Capture

In line with global climate change initiatives, Indonesia’s energy policy is anticipated to include strong measures for reducing greenhouse gas emissions. This could involve setting clear targets for emission reductions and integrating climate change mitigation strategies into all aspects of energy planning and policy.

The new government can develop carbon capture technologies in the heavy industries area. Currently, the heavy industries location is not suitable anymore for the new urban development of big cities like Jakarta, Surabaya and Medan. Such as the last case of pollution detection in Jakarta from a coal burner in Banten that was carried by the wind towards an area of urban Jakarta. These carbon storage technologies also will provide solutions while distributing the heavy industries to the new potential area of outer Jakarta.

The post-2024 election period in Indonesia is poised to be a defining moment in the country’s energy sector. The expected policy changes, emphasizing renewable energy, regulatory reforms, decentralization, energy efficiency, climate commitments, and support for transitioning industries, are set to pave the way for a more sustainable and resilient energy future for Indonesia. These changes, however, will require careful implementation, balancing economic growth, environmental sustainability, and social equity.

# @Abdullah A Afifi @Nor Anisa Arifin