Streaming Link: https://youtu.be/AtnuPcrxIkc
The Bandung Institute of Technology Alumni Association in the Netherlands (IA-ITB Netherlands) in collaboration with the Embassy of the Republic of Indonesia (KBRI) The Hague and the Energy Academy Indonesia (ECADIN) held an Indonesia-the Netherlands Technology Partnership Forum (INTPF) Symposium. This event was held online on Tuesday, 1st December 2020 and took the renewable energy as the main theme. The event was attended by more than 190 participants from industry, academia, and government agencies from Indonesia and the Netherlands. The event was opened by Mr. Raymon Frediansyah (Chairman of IA-ITB Netherlands), Mr. H.E. Mayerfas (Ambassador of the Republic of Indonesia to the Kingdom of the Netherlands) and Mr. Ikmal Lukman (Deputy Chairman of Investment Promotion at Indonesia Investment Coordinating Board (BKPM)) and continued with a keynote speech by Mr. Dadan Kusdiana ( Director General of New and Renewable Energy and Energy Conservation (EBTKE), the Ministry of Energy and Mineral Resources (ESDM) of Indonesia.
This event is a follow-up to the King of the Netherlands’ state visit to Indonesia in March 2020 and aims to realize investment cooperation and technological innovation between Indonesia and the Netherlands. In this event, a memorandum of understanding (MoU) was signed between PT Quadran Energi Rekayasa and Pondera Development BV in the development of wind power plants.
In his keynote speech, the Director General of EBTKE explained the potential for renewable energy in Indonesia. Per year, more than US $ 1.5 billion of investment in new and renewable energy (RE) enters Indonesia. In the future, the Government plans to prioritize solar energy, which is becoming more attractive and cheaper. Also emphasized the government’s commitment to reducing carbon emissions according to the target in the Paris Agreement by substituting and converting primary energy sources, as well as increasing the use of RE.
The panel discussion highlighted a number of challenges in the realization of Indonesia-Netherlands cooperation in the development of RE in Indonesia. From a policy aspect, one of the main obstacles is the incomplete revision of RE regulations in Indonesia. As a result, it is difficult to reach a business agreement without a clear legal umbrella. In addition, it requires an understanding of the right policy framework, the applicable licensing process, and clarity of roles and responsibilities of each agency in Indonesia. The requirements for the use of local components are also one of the issues discussed.
Another challenge that is being discussed is in terms of funding. Renewable energy projects in Indonesia, especially small-scale projects, find it difficult to access funding. This is due to the high risk and higher unit investment costs compared to larger scale projects. Therefore, it requires various business model innovations and new funding sources as well as incentive support from the government for business players and funding institutions who wish to be involved in renewable energy projects in Indonesia.
In addition, several lessons learned in partnerships in the renewable energy sector were discussed. First, the need for common vision and commitment as well as competence and complementary networks between business partners. Second, involvement and support from government policies, capacity building of actors, and healthy market mechanisms. Third, renewable energy in Indonesia still tends to be new and its development is not widely known, so patience is needed in realizing renewable energy programs in Indonesia. This INTPF Symposium is a pre-event for INTPF Conference event which will be held in 2021.