and Energy Efficiency Feasible Alternatives
and Policies in Indonesia
FEATURED PAPER
By Royan Nur Huda
Tangerang Selatan, Indonesia
ABSTRACT
There has never been a more significant global demand for energy supply and efficiency projects. Between 2012 and 2035, it is anticipated that the need for primary energy and electricity will increase by 50% and 70%, respectively, primarily in emerging countries such as Indonesia, while in developed nations, the transition towards energy-efficient and low-carbon supply technologies will continue. This paper aims to determine the optimal technologies for implementing new and renewable energy in Indonesia, as well as the obstacles and challenges that impede the implementation of renewable energy and energy efficiency initiatives and policies in Indonesia. The author identifies the most suitable technologies for performance in Indonesia using IFE and EFE matrices derived from the SWOT analysis framework, Multi-Attribute Decision Making (MADM), and sensitivity analysis. From this research, we can conclude that geothermal energy, ocean energy, and green hydrogen are the three most promising technologies for the near future in Indonesia. Future research on technological advancement, energy storage, and smart grid integration has room for enhancement.
Keywords: Renewable Energy, Project Financing, Investment, Geothermal, Wind Turbine, Ocean, Hydrogen, Hydropower, Solar PV, Biomass, Nuclear, SWOT, MADM, Electricity, Techno-Economics.
INTRODUCTION
- Indonesia Overall Sector
“Indonesia is an extensive archipelago with over 17,504 islands spanning 5,000 kilometers across Southeast Asia and Oceania. Indonesia shares land borders with Papua New Guinea, Timor-Leste, and Malaysia and maritime borders with Singapore, the Philippines, and Australia.”[1] “Indonesia has the fourth-largest population in the world, with an estimated 269 million residents.”[2] More than half of the population resides on the island of Java, where economic activity is concentrated, with the remainder dispersed across Sumatra, Bali, Sulawesi, Kalimantan, Nusa Tenggara, Maluku, Papua, and roughly 6,000 less-populated islands. Indonesia has effectively reduced extreme poverty from 11.5% in 2015 to 9.4% in 2019. “However, the country’s island geography makes sustainable economic and infrastructure development in outlying provinces difficult, resulting in ubiquitous regional disparities.”[3]
Regarding purchasing power, Indonesia is the seventh-largest economy in the world and the largest economy in Southeast Asia. “Indonesia’s gross domestic product (GDP) has increased by approximately 5% annually, from Rp861.9 billion in 2015 to over Rp1 trillion in 2019.” [4] Historically, the production of commodities and agricultural goods has propelled economic expansion. Coupled with government initiatives to invest in domestic infrastructure, the country’s youthful, working-age population has enjoyed a steadily rising standard of living over the past few decades. “In 2019, the contribution of manufacturing to GDP was 19.7%, while the contribution of services was 44.4%.” [5] “The ranking of Indonesia’s convenience of doing business rose from 120 in 2014 to 73 in 2019, while the index’s subcomponent on electricity access improved from 122 to 33.”[6]
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Editor’s note: This paper was originally prepared during a 6-month long Graduate-Level Competency Development/Capacity Building Program developed by PT Mitrata Citragraha, and led by Dr. Paul D. Giammalvo to prepare candidates for AACE CCP or other Certifications. https://build-project-management-competency.com/our-faqs/
How to cite this paper: Huda, R.N. (2023). The Assessment of New and Renewable Energy and Energy Efficiency Feasible Alternatives and Policies in Indonesia; PM World Journal, Vol. XII, Issue IX, September. Available online at https://pmworldlibrary.net/wp-content/uploads/2023/09/pmwj133-Sep2023-Huda-assessment-of-new-and-renewable-energy-in-indonesia.pdf
About the Author
Royan Nur Huda
Tangerang Selatan, Indonesia
Royan Nur Huda is a senior engineer with seventeen years of experience in business planning and strategy, commercial operation, project planning, project management, electrical design engineering, and construction in the oil and energy industries. Currently, he is an engineer at the Indonesian national energy company. He possesses a Bachelor of Science in Electrical Power Engineering from Trisakti University (USAKTI), a Master of Science in Energy Engineering Management from the University of Birmingham, United Kingdom, and a Master of Business Administration from Bandung Institute of Technology (ITB). He also possesses the certifications of PII (Indonesian Engineers Association) Senior Professional Engineer, ASEAN Engineer, and ACPE (ASEAN Chartered Professional Engineer). He is enrolled in a distance learning mentoring course taught by Dr. Paul D. Giammalvo, CDT, CCE, MScPM, MRICS, and GPM-m Senior Technical Advisor, PT Mitratata Citragraha, to achieve Certified Cost Professional certification from AACE International.
Royan resides in Tangerang Selatan, Indonesia, and his email address is royannh@gmail.com.
[1] Statistics Indonesia. 2020. Total Population Projection Result by Province and Gender (Thousand People), 2018–2020. Jakarta.
[2] ADB. 2020. Poverty Data: Indonesia
[3] ADB. 2020. Basic Statistics, Asia and The Pacific. Manila.
[4] ADB. 2020. Basic Statistics, Asia and The Pacific. Manila.
[5] World Bank Data. 202
[6] World Bank Group. 2015. Doing Business 2014. Economy Profile Indonesia. Washington DC; and World Bank Group. 2020. Doing Business 2019. Economy Profile Indonesia. Washington, DC.
