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ICDX Together with B20 Indonesia Encourages Utilization of Renewable Energy
ICDX Together with B20 Indonesia Encourages Utilization of Renewable Energy
Thursday, 28 July 2022

Jakarta, 28 Juli 2022 - In an effort to achieve the Nationally Determined Contribution (NDC) target in 2030, and achieve Net Zero Emissions before 2060, Indonesia has transformed Indonesia's energy into New and Renewable Energy (EBT). One of them is through the development of green industrial areas by utilizing large-scale NRE-based power plants.

"Indonesia can achieve Net Zero Emissions by 2050, faster than the government's target of 2060, if Indonesia can maximize the implementation of EBT," said Executive Director of the Institute for Essential Services Reform, Fabby Tumiwa in the Webinar Advancing Low Carbon Economy through Renewable Energy which organized by ICDX together with the online B20 Indonesia Trade & Investment Task Force (28/7).

At the same event, Chair of B20 Indonesia, Shinta Kamdani said, "I am happy that ICDX can be our partner and help us to build awareness and communication on how companies in Indonesia and global partners can play an active role in accelerating the green energy transition and learn about opportunities in the renewable energy sector. I hope that with this communication, the private sector can invest in the renewable energy sector which can lead us to low carbon emissions. We also present an initiative to create a carbon center of excellence and a global blended finance alliance as a legacy of Indonesia's B20, to ensure that Indonesia and other G20 countries still have a strong support system to accelerate the green transition even though the G20 Indonesian Presidency will end."

For some countries, the use of NRE has many impacts and benefits, especially for developing countries that are vulnerable to the climate crisis. Also, this application can create economic growth opportunities that can help the economic recovery of each country.

The vastness of the area and the fertile natural wealth that exists, make Indonesia has a very large renewable energy potential. However, its potential is inversely proportional to its application. Based on data from the Ministry of Energy and Mineral Resources (ESDM) to date, the application of renewable energy in Indonesia has only reached 0.3 percent. This figure shows that the application of renewable energy in Indonesia is very minimal. To increase the application of renewable energy, a systematic plan is needed so that the application of renewable energy in Indonesia can be carried out optimally.

The application of renewable energy requires considerable time and cost. In addition, proper planning, flow, and community commitment are needed to contribute so that the application of renewable energy in Indonesia can be realized in a timely manner and according to predetermined targets.

“The key player of the EBT change is the power of people or how the community can actively participate in helping this change. The community must be given the opportunity to have a big role in developing businesses by utilizing NRE. The community will be the party that dominates ownership of renewable energy,” said Director of Tropical Renewable Energy Center (TREC), University of Indonesia, Dr.-Ing Eko Adhi Setiawan in the same webinar.

The high mobility of the people and the vast territory in Indonesia is a challenge in itself in the application of renewable energy. A commitment is needed so that the application of renewable energy can be spread evenly throughout Indonesia. In addition, the application of renewable energy is also an opportunity to improve the economy in Indonesia. The application of renewable energy is an opportunity to open up many jobs for the community so that it can increase Indonesia's economic growth.

"Although Indonesia has great opportunities in the development of renewable energy, we are also facing a fairly big challenge. The most pressing challenge is the existence of regulations. A regulation is needed that can support the implementation/funding of renewable energy. Also, resources are a challenge that must be considered. It takes people in various regions to support the development of renewable energy in Indonesia," said Yovie Priadi, President Director & CEO of Four Mitra Indika Solar Power, on the same occasion.

Deputy Chair of Trade and Investment Task Force B20 Indonesia, Dharma Djojonegoro, explained, “The topic of a Low Carbon Economy is very important for our B20 Indonesia, especially the Trade and Investment Task Force. Trade and investment have played a role in driving the green transition through Environmental, Social and Governance (ESG) investment as well as trade in green goods and green services. To this end, the Trade and Investment Task Force has put forward recommendations to make trade and investment driving impactful for greener and sustainable development in line with the SDGs.”

The recommendation is to advocate for G20 governments to facilitate the flow of foreign direct investment (FDI) working towards a green and circular business model. In addition, the Trade and Investment Task Force also encourages G20 countries to take advantage of trade and investment in accelerating a fair transition, including by providing support for developing economies, reducing trade barriers and investing in environmental goods and services to ensure the diffusion of environmental technologies best available, and facilitate cross border trade and investment in this sector. This effort will enable more countries, especially developing countries to build their renewable energy infrastructure, and realize their low-carbon economic ambitions.


About Indonesia Commodity & Derivatives Exchange (ICDX)

The Indonesia Commodity & Derivatives Exchange (ICDX), also known as the Indonesia Commodity and Derivatives Exchange (ICDX) is a commodity and derivatives exchange based in Indonesia. ICDX's vision is to become a global market exchange that improves national welfare, with a mission to become a benchmark for setting world commodity prices through Indonesian primary products. ICDX is an Exchange supported by its members consisting of brokers and traders regulated by BAPPEBTI. ICDX members facilitate customer transaction services which include ICDX commodity futures trading contracts. Trades on ICDX will be settled, guaranteed, and cleared by the Indonesia Clearing House. For more information, please visit www.icdx.co.id and www.ich.co.id

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