When opening Business-20 (B-20) Indonesian Inception Meeting 2022, President Joko “Jokowi” Widodo said that a total of 5.5 gigawatts (GW) capacity of coal-powered power plants (PLTU) are ready for early retirement, as part of the Indonesian commitment to reach net zero carbon emissions in 2060. Indonesia has an ambitious yet promising goal to fully phase out coal power plants by 2056. According to PLN’s 2021-2030, 2025 will see the start the replacement of coal-fired power plants in Indonesia by renewable energy. Under the country’s recent pledge at COP26, Indonesia seeks to retire up to 9.2 gigawatts (GW) of coal-fired power plants by 2030. On top of that, the country also commits to scaling up the deployment of renewable power generation, scaling up technologies and policies to move from unabated coal power generation, and strengthening domestic and international efforts to support affected parties during the energy transition to renewable energy.

Considering Indonesia’s commitment to phasing out coal-fired power plants along with its budding renewable energy sector, this situation provides opportunities for investors to take part in the country’s transition to renewable energy. In the near term, the 2021-2030 RUPTL itself offers great opportunity for RE developers and investors. In the RUPTL, PT PLN has targeted 40.6 GW new power plant installations in 2021-2030, of which 20.9 BW or 51.6 percent will be sourced from new and renewable power plants. Many of the renewable projects in the RUPTL are actually to achieve a shorter-term target of 23 percent renewable energy in Indonesia’s energy mix in 2025. According to a government estimate, Indonesia requires an investment of US$70 billion to achieve the target of 23 percent renewable energy by 2025.

In this session, opportunities and challenges presented by the 2021-2030 RUPTL and the longer-term coal phase out will be discussed: What are the opportunities available for Chinese investors? What are considerable threats that could hold Indonesia’s RE development? Why should foreign investors consider Indonesia’s transition to clean energy in the first place? What are the concerns of Chinese investors over RE investment in Indonesia?

Speakers

Dadan Kusdiana

Director General of New, Renewable Energy and Energy Conservation (EBTKE)

Nurul Ichwan

Deputy Investment Minister/BKPM for Investment Planning

Wei Xiaowei

Acting Director General of International Cooperation of China National Energy Administration

Edwin Nugraha Putra

Executive Vice President Electricity System Planning PLN

Moderator

Fajar B. Hirawan

Head of the Economic Department, CSIS

Indonesia has a vast potential for generating and balancing solar photovoltaic (PV) energy to meet future energy needs at a competitive cost with solar energy identified as an energy source whose technical, environmental and economic potential far exceeds Indonesia’s present and future energy requirements and is far larger than all other renewable energy resources combined. Solar irradiation is available at a stable level all year long, offering an energy potential of more than 200 gigawatts (GW).

In the 2021-2030 RUPTL, PLN relies so much on solar to meet the 2025 renewable energy target of 23 percent in the country’s energy mix. In the five-year period of 2021 to 2025, PLN plans to generate a total of 3,910 megawatts peak (MWp) from solar energy or 36.7 percent of 10,640 MW of electricity from all renewable energy plants. PLN plans to build solar panels in remote islands not connected to grids, work together with independent power producers to build floating solar panels on lakes, existing dams as well as encourage the people and businesses to build more rooftop solar PVs. Moreover, the government’s latest regulation on rooftop solar PV increases net metering/electricity exporting to PLN from 65 percent to 100 percent. All these developments open more investment opportunities for investors/financiers to invest in solar PVs.

This session will convene stakeholders and industry players from Indonesia and China to address the most pressing issues around developing and investing in Indonesia’s solar energy sector, discuss how collaborations between local stakeholders and potential investors could raise the standards of solar projects so that they are investment-worthy, and tackle the problems that have been hindering investment realization into the promising sector.

Speakers

Herman Supriadi

Director of Centre for Green Industry (CGI), Ministry of Industry

Linus Andor Mulana Sijabat

LEN industry business strategy & portfolio director

Fabby Tumiwa

Chairman of the Indonesian Solar Energy Association (AESI)

Luo Dayong (David)

Strategic Advisor to CEO and Chief Technology Officer of Digital Power Business Unit of PT. Huawei Tech Investment

Stephen Effendy

Indonesia Country Manager of LONGi

Moderator

Josh Ching

CEO of PT Solardex Energy Indonesia

Wind energy is the least developed renewable energy sector in Indonesia. So far Indonesia has only 147 MW of installed wind power capacity from two commercially operated win power plants in Jeneponto and Sidenreng Rappang (often abbreviated to Sidrap) regencies, both in South Sulawesi. The number is still far below the 60,647 MW of wind energy potentials, spreading in Sumatra, Java, South Sulawesi, Nusa Tenggara and Maluku. Indonesia's diverse archipelagic landscape is reportedly the primary challenge to developing utility-scale wind farms.

In its 2021-2030 RUPTL, PLN plans to invite independent power producers to build more wind powered power plants, with total capacity of 527 MW until 2025. PLN said that a number of developers have proposed to build wind power plants in a number of areas, including Aceh Besar, Padang Sidempuan, Sukabumi, Garut, Banten, Tanah Laut, Kupang, Soe-Oelbubuk, Ambon, Nusa Saumlaki, Kei kecil, Tuban dan Jeneponto. But all these proposals still need further studies to find utility-scale wind farms.

The session will feature wind power players and investors to address a number lingering issues around wind energy such as: What has been done to invigorate wind energy development? How should the government coax the regulatory ecosystem so that Chinese investors would want to take part in the plan regardless of Indonesia's challenging geographic landscape?

Speakers

Ferdinan Simanullang

Manager of Variable Renewable Energy of IPP Project at PT.PLN

Ifnaldi Sikumbang

Vice Chairman of the Indonesian Wind Energy Association (AEAI)

Chandra Soemitro

CEO of Pondera Consult/PT Hywind Energy Solution

Si Zhongwu

Deputy General Manager of Asia Center, Goldwind Energy

Moderator

Riyadi Suparno

Executive Director Tenggara Strategics

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Thank you for your interest.