Jakarta, 17 February 2022 – The economic development of a country will cause an increase in its energy demand rate, so it will become one of the key sectors in economic recovery. The security and reliability of energy supply will be vital, especially in 2045 when Indonesia’s economy is expected to be highly productive and innovative.
Equitable access to affordable energy will bring a direct impact on the essential services, education and health, for instance, that will strengthen the economy. The projections of national energy demand in 2050 are 548.8 MTOE (Million Tonnes of Oil Equivalent) in Business as Usual (BaU) scenario; 481.1 MTOE in sustainable development scenario; and 424.2 MTOE in low-carbon scenario which are mainly contributed by transportation and industry sectors.
“For fulfilling the need of and developing the national energy, we have an energy transition policy line or checkpoint that is used as a reference,” said Coordinating Economic Affairs Minister Airlangga Hartarto in a virtual keynote speech at G20 National Webinar carrying the theme “Towards Sustainable Development” in Jakarta on Thursday, Feb. 17.
One of the energy transition targets is 23 percent of new and renewable energy in the energy mix in 2025. The other targets are an independent 29 percent emission reduction of Nationally Determined Contribution in 2030 and Net Zero Emission by 2060.
“This energy transition is crucial for us and requires an affirmative policy, financing, and access to technology. Therefore, President Jokowi has established that the energy transition is one of the main priorities in Indonesia’s G20 Presidency,” said Minister Airlangga.
The government has also carried out various strategies to reduce carbon emissions, such as Carbon Capture Utilization and Storage (CCUS) implementation, routine flaring limitation, and natural gas optimization for transportation and household.
In the future, the green industry will be sought-after, because it will boost the economy, provide added value for the country, and absorb the highly skilled labor force.
Minister Airlangga also urged the alignment of the university and academic research with the need for technology adoption to ensure energy availability and affordability as it became a central issue.
“I hope Science 20 as an engagement group that represents G20 academics and scientists can give contribution and enlightenment to strengthen Indonesia’s commitment towards economic recovery that is greener and more sustainable,” he concluded.