Indonesia has a large potential for new and renewable energy that surpasses 443 gigawatts (GW). The Indonesian government is preparing to pass a new energy and renewable energy bill known officially as Rancangan Undang Undang tentang Energi Baru dan Terbarukan or RUU EBT. This is a regulatory framework for renewable energy projects and incentivises the transition to green energy. While better late than never, RUU EBT has some shortcomings and missed opportunities.
Citing ftmm.unair.ac.id website, there are five energy potentials that are popular in Indonesia, namely solar power energy, water power energy, wind power energy, biomass power energy, and micro hydropower potential. Solar power energy is the highest; at least 50 percent of the total renewable energy is solar power energy. This is due to Indonesia’s geographic location that lies near the equator. RUU EBT is an important step in Indonesia’s transition to green energy. While RUU EBT provides sorely needed support for the green energy transition, lawmakers should reconsider the imposing of export levies and the inclusion of relatively dirty sources of energy. The exclusion of coal derivatives and other carbon-intensive energy sources from RUU EBT would also be consistent with other efforts to curb pollution from the energy sector. This aligns with the recent pledge by the EU and several G20 governments to help Indonesia phase out CFPPs and achieve net zero emissions by 2050.