IESR Urges Indonesia to Accelerate Renewable Energy Development

TEMPO.CO, Jakarta - The Executive Director of the Institute for Essential Services Reform (IESR), Fabby Tumiwa, stated that Indonesia is obligated to develop renewable energy due to geographical and economic reasons. The reason is that Indonesia has renewable energy resources that could save on financing compared to the use of conventional power plants.

Among the renewable energy sources are abundant sunlight and wind energy in the eastern regions of Indonesia. Furthermore, Fabby pointed out that Indonesia has two seasons ideal for developing this type of renewable energy. "The development of solar, wind, and biomass energy can replace existing fossil fuel power plants by providing competitive electricity prices," Fabby said during the launch of the study on 100% renewable energy-based islands on Monday, June 30, 2025.

Fabby mentioned that distributing conventional energy sources, such as fossil fuels, to remote islands is challenging. The distribution cost alone could reach 30 to 50 percent of the fuel's price. Additionally, the potential for adverse weather could slow down the distribution route and pose a risk of creating local energy crises in those areas.

These issues have become a specter in distributing energy to many regions of the country. "This is currently happening in some small islands in Indonesia, such as Enggano Island, which experiences a power crisis with only 12 hours of availability. This condition has had an economic impact on the island," Fabby stated.

Fabby recommended that the government should accelerate the use of renewable energy by developing solar power plants, which have begun to emerge in the global market. According to him, the components for these plants have become cheaper compared to a decade ago, and the battery storage is claimed to support the availability of electricity for many small island regions.

Additionally, Fabby mentioned that renewable energy will create millions of green jobs for energy self-sufficiency, which can save the country's foreign exchange. "The transition to 100% renewable energy will bring extraordinary socio-economic benefits to Indonesia. This is one of the reasons why the IESR strongly advocates the transition to renewable energy," Fabby said.

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