Government Needs Revision of Perpres 112/2022 For Energy Transition

Government Needs Revision of Perpres 112/2022 For Energy Transition

Brother Center | The government is asked to revise Presidential Regulation (Perpres) Number 112/2022 concerning the Acceleration of Renewable Energy Development for the Provision of Electricity if it wants to realize the energy transition using grants and loans of US$20 billion or the equivalent of Rp.314 trillion (assuming an exchange rate of Rp.15,717 per US dollar).

The fund, called the Just Energy Transition Partnership (JETP), comes from the Partnership for Global Infrastructure and Investment (PGII), under the G7 countries.

Director of the Center for Economic and Law Studies (Celios) Bhima Yudhistira said there was a contradiction between this funding and the existing legal framework in Indonesia.

Government Needs Revision of Perpres 112/2022 For Energy Transition

The reason is, the regulations still allow the construction of coal-fired power plants.

“The strange thing is, in JETP there should be no more construction of new PLTUs, but in Presidential Decree 112/2022 it still allows the construction of PLTUs in industrial areas. This is not connected. We got funding to stop building PLTUs, but in industrial areas it is still allowed , especially in the nickel smelter area,” said Bhima, at a Celios press conference, Thursday (17/11).

Because of that, he asked the government to revise the regulation. He agrees that Indonesia will carry out an energy transition, provided that it does not discriminate between power plants outside and within industrial zones because all must be put on a moratorium.

On the same occasion, Trend Asia Program Director Ahmad Ashov Birry also highlighted the legal basis for the new and renewable energy (EBT) transition.

“There are many contradictions there, but the basis is Presidential Decree 112/2022. We must be suspicious because this Presidential Decree was issued right before or in the moments before the G20 meeting was held. So that legitimacy for the new coal power plant is still being built,” he said.

Previously, the Director of Various New and Renewable Energy (EBT) at the Ministry of Energy and Mineral Resources, Andriah Feby Misna, detailed a roadmap for accelerating the termination of the operational period of the PLTU, which is claimed to be completely finished by 2050.

He explained that Perpres 112/2022 does prohibit the construction of PLTU, except for PLTU which has been included in the 2021 to 2030 Electricity Supply Business Plan (RUPTL).

In addition, there are several conditions that still allow the PLTU to be built. First, a PLTU that is integrated with industries that contribute to natural resources and national strategic projects.

Then, PLTU is committed to reducing greenhouse gases (GHG) by at least 35 percent within 10 years of operation, either through technology development, carbon offsets, and/or the NRE mix. Finally, the PLTU that was built can only operate until 2050.

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