What should Indonesia do?
1
Enhance its NDC to be 1.5 degree aligned by COP28
- Detail plan and strategy for achieving ENDC.
- Net sink FOLU 2030 and relevant instruments to implement it
- Role of carbon pricing both domestic and international in supporting ENDC’s achievement in Indonesia
- Just energy transition to shift from coal and other fossil-based energy sources to renewable ones, including through distributed energy supply system
- Formulating national-wide NZE target by 2060 or sooner and relevant strategies to achieve it
- Mainstreaming low carbon into midterm national development plan (RPJMN 2025-2029) as well as into long-term national development plan (RPJPN 2025-2045)
- Mobilising climate finance from both international and domestic sources including public and private
2
Develop climate resilience development plan
- Finalising map of vulnerability and resilience
- Strategy and planning for climate resilience development”
What you need to know about Indonesia?
- The Ministry of Environment and Forestry is tasked to be responsible on overall climate related policies and negotiation. However, during the last years they are less progressive.
- The Ministry of Energy and Mineral Resources is responsible for all issues related to energy and has to balance the role of both fossil and renewables. Just Energy Transition Partnership was agreed in November 2022 – USD 20 billion from IPG member countries and GFANZ members. Emission trading system has been implemented in coal fired power plants sector since February 2023″
- The Ministry of Finance has worked in climate finance, including by introducing climate budget tagging for both domestic and international resources. Law no. 7/2021 and Presidential Regulation no. 98/2021 with relevant implementation regulations on carbon pricing both for carbon trading and carbon tax were issued in October 2021.
- The Coordinating Ministry for Maritime and Investment Affairs has a role to coordinate a number of ministries including MoEF and MEMR. The Minister has tasked MEMR to work on energy transition and NZE in the energy sector.
- The Ministry of National Development Planning (Bappenas) has worked on Indonesia’s Low Carbon Development Initiative (LCDI). One of the outcome is the inclusion of GHG emission reduction target in the national midterm development plan of 2020-2024 to be 27.3% compared to baseline in 2024.
Recent developments, threats and levers for action
- Presidential Regulation no. 98/2021 on Carbon Pricing was issued in October 2021 which focuses more on domestic carbon pricing as part of the efforts to achieve Indonesia’s NDC. The implementation regulations are expected to be ready in Q1 of 2022
- The Ministry of Energy and Mineral Resources announced the roadmap of energy transition towards NZE by 2060. There will be no new coal power plants from 2021 except those that currently in construction and those already signed agreement with PLN (National Electricity Company). The target of renewable energy share in national energy mix 2030 will be 23% and to be come 57% in 2035. The share is expected to reach 87% in 2050 and 100% in 2060.
- The latest Electricity Supply Business Plan 2021-2030 includes of 51.6% new installed capacity based on renewable energy (equal to 20.9 GW).
- The Ministry of Environment and Forestry claimed that the deforestation in 2020 decreased significantly (around 75%) compared to those in 2019. Reasons claimed include the culmination of a number of policies aimed at protecting the country’s forests (such as a permanent ban on issuing new permits to clear primary forests and peatlands; a moratorium on new oil palm plantation licenses; forest fire mitigation; a social forestry program; land rehabilitation; and increased enforcement against environmental violations). However, activists said other factors, e.g., economy and weather, may have contributed to the drop. 2020 was among the wettest years in the past four decades, thanks to the La Niña event.
- Just Energy Transition Partnership aims to peaking total power sector emissions by 2030 and capping it at 290 megatons of CO2 in 2030 as well as to accelerating the deployment of renewable energy to at least 34 percent of all power generation by 2030 with necessary financial support.
- Indonesia foresees to reach the peaking of national GHGs emissions in 2030 with net sink in forestry and land uses (FOLU); further exploring opportunity to rapidly progress towards net-zero emission in 2060 or sooner. [as stated in Indonesia’s LTS-LCCR Document]
Strengths
- Private sector started to eagerly be involved in net zero emission effort
- Indonesia has abundant source of renewable energy including those in remote areas and small islands
- Current international support for shaping a energy transition strategy in Indonesia
- Strong commitment from both Minister of Energy and Mineral Resources and the Coordinating Minister of Maritime and Investment Affairs for energy transition and NZE in the power generation and overall energy sector
About Climate Diplomacy Snapshots
The data is clear. Accelerated and enhanced action is needed now to build resilience and avoid the worst impacts of climate change. As they seek to address the ongoing health, economic and social impacts of COVID-19, the Ukraine-Russia war and growing climate change impacts, governments should seize opportunities to invest in a recovery that will build social, economic and climate resilience on the long-term. The Climate Diplomacy Snapshots aim to provide the climate community with a clear overview of what each country should do, on climate and recovery, to pursue these joint objectives and keep the global average temperature increase to 1.5°C. Each has been prepared with the help of national experts, and will be regularly updated. The snapshots aim to support climate advocacy in the lead up to COP28.
Check other Snapshots
