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Indonesia Energy and Climate Challenge

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As developing country, Indonesia is still struggling on basic energy problem such as financial (subsidy), technical (infrastructure, capacity) and population growth (McKinsey, BPPT, DEN 2014). However on national level to have an environment sustainability is still a priority of national agenda.

Based on this environmental challenges, it is important to have an energy planning that consider the environmental aspect or based on this environmental factor and putting the measurement in detail plan.

In Indonesia the regulation that support this are:
1. PP no 5 year 2006 on National Energy Policy (Energy Mix by 2025)
2. PP no 61 year 2011 on Greenhouse Gas (GHG 29% reduction by 2030)

McKinsey in 2014 said that there are 10 challenges in Indonesia energy sector:
1. Energy Subsidies
2. Power Generation Capacity
3. Oil & Gas Exploration Incentives
4. National Gas Infrastructure
5. Refineries
6. Fuel Distribution Network
7. Invest in Renewable
8. Gas Transport
9. Electric Vehicle
10. Local capabilities

BPPT mention 5 challenges:
1. Decline Oil Exploration
2. Gas Infrastructure
3. Low renewable investment
4. Excessive Coal exploration
5. Growth in transportation (vs subsidy)
6. High cost of electricity production

DEN mention several challenges (in KEN)
1. Energy Security
2. Energy Access
3. Job/Work available
4. Environment

Written by Anjar Priandoyo

November 10, 2015 pada 2:12 pm

Ditulis dalam Science

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