Indonesia's industrial decarbonization faces challenges beyond clean energy

Indonesia's push for industrial decarbonization faces significant hurdles that extend beyond simply building clean energy infrastructure. Experts are calling on the government to provide a clearer roadmap within the National Energy General Plan (RUEN) for 2026-2035. This clarity is essential to effectively translate ambitious clean energy targets into tangible policies, attract necessary investments, and implement viable projects within the industrial sector.

Satya Widya Yudha, a member of the National Energy Council (DEN), stressed the importance of aligning the growth in clean energy supply with confirmed demand. "We cannot just talk about the supply, we push it, we build it, there must be confirmed demand," Satya stated, emphasizing that the planned 100 gigawatt peak (GWp) solar power plant development could accelerate the RUEN without altering its fundamental scenario.

However, translating these plans into action presents the main challenge. Zakiul Fikri, Director of Legal Affairs at the Center of Economic and Law Studies (CELIOS), highlighted the critical gap between planning and implementation. He argued that the RUEN must also prioritize specific industrial sectors, acknowledging that each sector has unique characteristics and varying levels of difficulty in transitioning away from fossil fuels.

Furthermore, Fikri pointed out that the success of decarbonization should not solely be measured by the installed capacity of renewable energy. A key indicator must be the actual reduction in emissions from industrial fossil fuel consumption. Ahmad Zuhdi Dwi Kusuma from the Energy Shift Institute added that the RUEN needs to serve as a robust foundation for subsequent regulations, emphasizing that regulatory certainty is paramount for long-term energy investments. While global financing for clean energy is available, a stable regulatory environment and attractive investment climate are crucial for these funds to flow into competitive renewable energy projects.