Indonesia and IEA deepen cooperation on electricity and renewables to advance energy transitions

Indonesian Minister of Energy and Mineral Resources Mr Arifin Tasrif and IEA Executive Director Dr Fatih Birol are pleased to announce the launch of a new joint project on electricity and renewable energy in Indonesia.

The project will focus on optimising the design and implementation of a new flagship scheme to encourage private investment in renewable power sources as well as strategies to enhance renewables integration and power system operation. The work will be carried out in partnership with the Indonesian national power utility PT Perusahaan Listrik Negara (PLN Persero).

This cooperation falls under the Joint Work Programme signed by Dr Birol and Minister Tasrif on the occasion of the IEA’s Ministerial Meeting in December 2019. The programme builds on many years of strong collaboration between the IEA and Indonesia across all fuels and all technologies.

The launch of this project comes ahead of the IEA Clean Energy Transitions Summit on 9 July, which will bring together around 40 Ministers and high-level figures from countries representing about 80% of global energy demand.

"The IEA has shown monumental leadership to bring the international community together in an effort to tackle the effects of the Covid-19 pandemic on energy-related issues and to set out a path for sustainable recovery. During these challenging times, I am pleased to note that the IEA is strongly in support of the Ministry’s key priorities on power system enhancement and renewables investment. My highest regards and appreciation towards the IEA for their steadfast cooperation and I look forward to closely working together on this matter as we aim to continually progress the transition to clean energy," Minister Tasrif said.

The Indonesian government has sought to tackle the immediate health and economic impacts of the Covid-19 pandemic through a variety of fiscal stimulus and policy measures. Although the energy sector has been severely impacted by the crisis, energy has also been an important part of the government’s response. This has included the provision of free or discounted electricity to 33 million of the most vulnerable families in the country.

The energy sector – a key driver of economic growth and dynamism – has a critical role to play in supporting recovery from the Covid-19. Indeed, reflecting this, the Indonesian government has ambitious plans to significantly scale up investments in renewable energy and to enhance the operation of its electricity sector.

As the IEA has highlighted since early in the current crisis, developments in energy markets and ambitious recovery efforts by governments present policymakers with a once-in-a-lifetime window of opportunity to reshape energy systems for decades to come. In doing so, they can put global emissions into structural decline. The IEA Clean Energy Transitions Summit – the key global energy and climate event of the year – aims to support these efforts by bringing together a grand coalition of the world’s energy leaders, including Minister Tasrif, to discuss how to take real-world action.

"As the world’s fourth most populous country, Indonesia is critical to global energy and an incredibly important member of the IEA Family," Dr Birol said. "We are very happy to be working with Minister Tasrif and his team on this high-profile effort to support Indonesia’s ambitious clean energy transition. I look forward to welcoming him at the IEA Summit and hearing him share insights from Indonesia’s experience – and views on the best path forward."

The collaboration on electricity and renewables is complemented by cooperation and engagement between the Indonesian Government, PLN and the IEA on a range of energy policy priorities, including electric vehicle regulation, electricity system investment, and ways to reduce energy imports.