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Green Power for Mobile

By Ali Imron

Energy Conservation is an Investment: A look at Indonesia

Energy Conservation is an Investment: A look at Indonesia

Energy conservation refers to efforts made to reduce energy consumption. Energy conservation can be achieved through increased energy efficiency, in conjunction with decreased energy consumption and/or a reduced consumption from conventional energy sources.

Taking Indonesia as an example, the energy conservation baseline is in accordance with the PP 70/2009 Act, an extension of the Act PP 30/2007 in which it states that everyone deserves energy, and that it is the government’s obligation to preserve energy source for all citizens.

Data from Indonesia’s Ministry of Energy and Mineral Resources (ESDM) indicates that more than 25% of households in Indonesia live without access to electricity. This number will continue to grow if industry players do not move towards renewable energy for least 40% of Indonesia’s national energy consumption.

On the other hand, the use of renewable energy has a targeted growth of 5% according to Act PP 5/2006 by 2025. However, renewable energy has issues of its own. For example, solar deployment can cost operators around US$40,000 to 50,000 for a 1kW–1.5kW load. Because of these issues, there is no incentive at the moment for the industry to include a renewable component.

So energy conservation is an investment and the government must protect this investment. The renewable ecosystem will undoubtedly grow in Indonesia if concessions are made such as tax reductions or exceptions, as well as incentives or permissions to import renewable energy technology. In this next phase of our programme, the Green Power for Mobile team will have a more proactive approach in Indonesia, particularly at the government level, to influence an incentive scheme for renewable technology in the country.

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