By: Agung Ramadhan )*
The energy transition from fossil to renewable energy (NE) is very important for the environment as well as accelerating economic recovery in Indonesia. On the other hand, we cannot depend on fossil stocks as energy fuels because they are limited in number.
Indonesia is blessed with natural wealth and sufficient mining products, such as coal and oil. These mining products are well used for fuel and make many industries move, because they have sufficient energy. But there is a problem when they continue to be excavated, can they be used for the next thousand years?
Therefore, the government plans to replace the old energy into NRE for fear of insufficient stock. The reason is because so far we use coal, while the mining products are formed into fossils. Meanwhile, we haven’t calculated how many fossils are in the ground, so we are afraid that when coal continues to be excavated, it will not cover energy needs.
Deputy Minister of Finance Suahasil Nazara emphasized that the energy transition mechanism (EBT) to new renewable energy is not an option. The adoption of EBT in Indonesia should be the future to gradually replace steam power plants (PLTU), until 2060. On the one hand, energy needs are increasing, while on the other hand, fossil fuels produce CO2.
Suahasil added, this change has challenges, because it does not start from zero. The set of fossil energy has been in the past, and was built by investor funds, and the contracts are long term. I’m afraid that when the contract is changed, they will ask for compensation.
This compensation is prepared by the government, so that the energy transition cannot be carried out in a hurry. The transition must be carefully prepared so that no party loses.
Meanwhile, the energy transition has become an obligation, apart from the fossil stock that cannot be excavated forever, but also for other reasons. One of them is the greenhouse effect and climate change. If fossils are used continuously it will cause emissions that pollute the earth, because it produces CO2 aka carbon dioxide.
Whereas CO2 makes shortness of breath and heats the earth’s temperature, so that it can make climate change worse. So that the substitution of fossil fuels into NRE is an obligation. EBT can be from solar energy, biomass, wind energy, micro hydro, etc. This alternative energy can also be produced in Indonesia, so it is produced more quickly and also efficiently.
When fuel is converted into NRE, it will be more environmentally friendly and affect the country’s economy. So what’s the deal? You see. Many investors, especially from abroad, are aware of the dangers of climate change. When they know that Indonesia already has new and renewable energy, they will be interested in entering and investing in this country.
When there are many investors, the economy will automatically advance, because they dare to disburse a lot of fresh funds to build labor-intensive factories and big projects. So it will automatically require a lot of workers and reduce unemployment in Indonesia. The economy will be better because many have salaries and people’s purchasing power increases.
The energy transition from coal to new and renewable energy is very important. First, because it is more environmentally friendly and we take care that climate change does not occur in Indonesia. Second, when the fuel is converted into NRE, it attracts more investors and they voluntarily make foreign investment, thus driving the economy in this country.
)* The author is a contributor to the Pertiwi Institute
