Indonesia to Push State-owned Energy Corporations for Green Transformation

Nusantara Pol - The shift to more environmentally friendly energy is part of Indonesia's efforts to control climate change. Indonesian President Joko Widodo (Jokowi) encouraged Pertamina (oil and natural gas) and Perusahaan Listrik Negara (Electricity)  to immediately prepare a transition plan from fossil energy to green energy. 

This was conveyed by the President when giving directions to the Board of Commissioners and Directors of Pertamina and PLN, at the Bogor Presidential Palace.

“Indeed, we know that this energy transition cannot be delayed. Therefore, the planning, the grand design, must begin to be prepared. What will we do next year, what will we do the year after, what will the next five years be like," said President as quoted from Cabinet Secretariat (21/11/2021).

President Jokowi gives directions to the Board of Commissioners and Directors of state-owned Pertamina and PLN, at the Bogor Presidential Palace. (Photo: BPMI Setpres/Muchlis Jr)

The Head of State said that preparing for the energy transition to green energy is a must. Therefore, the President asked to use the time as efficiently as possible to strengthen the foundation towards the energy transition.

"This is something that must be started to be prepared, which ones can be shifted to hydro, which ones can be shifted to geothermal, then which ones can be shifted to the sun, which ones can be shifted to the wind," continued the Head of State.

The President said that the current largest supply of energy in Indonesia is still from coal at 67%, then fuel at 15 %, and gas at 8 %.  The renewable energy sources only have 10% share.

The Head of State views that if Indonesia can divert non-renewable energy, it will have an impact on the balance of payments which can positively affect the Indonesian currency, the rupiah.

“If we can switch it to other energies, for example, all cars are replaced with electricity, all household gas is replaced with electricity, because PLN has oversupply. This means that the supply from PLN is absorbed, oil imports at Pertamina will decrease," he said.

The President also encouraged his staff not to complicate the entry of investment to Pertamina and PLN. The President assessed that the amount of the potential investment to be given to Pertamina and PLN is considered very large. 

"Investment decisions may be made by companies, but the government also has a grand strategy to bring this country to a goal that we all aspire to," said the President.

Jokowi said that the world is rapidly changing so that the grand plans that are being carried out can change according to the circumstances. 

President Jokowi hopes that investment opportunities from outside should be as wide open as possible.

"Once again the opportunity to invest in Pertamina, the opportunity to invest in PLN is very wide open if you are open, open the door wide," said the President.