Notes from the Business Forum, Conference, and Forum Group Discussion GASPOL: Building a Low Greenhouse Gas Emissions Ecosystem towards Net Zero 2060

GASPOL’s business forum, conference, and focus group discussions are crucial to accelerating the national energy transition by regions and oil and gas-producing parties. Their unwavering goal is to achieve the Net Zero Carbon Emission target by 2060, an integral part of the decarbonization process. The Association of Oil and Gas and Renewable Energy Producing Regions (ADPMET) initiated these activities to pave the way for a sustainable, eco-friendly future. Ridwan Kamil leads ADPMET as the chairperson, while Dr. Andang Bachtiar, M.Sc., serves as the Secretary-General and critical administrator. Their commitment to this cause is truly inspiring.

Bandung hosted a successful event from August 30 to September 1, 2023. Distinguished participants included national and regional energy companies, investors, financial institutions, and notable academics.

Several issues revealed in this activity were:

The issue of climate change and its effect on life. It is often a topic of debate, but some clear facts must be addressed in a keynote speech by Professor Ir. Joko Santoso Abi Suroso, Ph.D., from ITB, confidently asserted that climate change is just one of many factors contributing to rising sea levels. He also pointed out that the rise in sea levels along the coasts of Indonesia is the direct result of poor policy decisions. His statements provide a concrete and factual analysis of the situation, leaving no room for doubt or uncertainty.

Indonesia’s primary energy mix has a significant gap that must be addressed confidently. The country heavily relies on fossil fuels, which comprise about 80% of its energy consumption, highlighting their importance in ensuring energy security (according to Central Bureau of Statistics data from 2011 to 2021). However, Indonesia and other developing countries that produce fossil fuels are urged to transition to cleaner energy sources to achieve Net Zero Carbon Emissions by 2060. Although some view this transition as being rushed and forced, it must be approached confidently to uphold the principles of justice and sustainability.

The energy transition acceleration. It will encompass the following:

Shift our focus from exploring and exploiting fossil fuels towards new, renewable energy sources to move towards a more sustainable future. The current state of human resources, science, and technology differs from this objective, but we must work towards transforming them to achieve our goal. We can bring the expected transition towards a more sustainable future with determination and concerted efforts.

The transition process demands significant costs, particularly from upstream to downstream operations. Nonetheless, the state-owned enterprises (e.g., PT. Sarana Multi Infrastruktur) involved in infrastructure financing and international financial institutions partnered with the Indonesia Investment Authority (INA) are fully equipped to support the funding transformation through loans with specific terms and guarantees. Moreover, it is worth noting that certain financial institutions have allocated budgets in the form of grants, subject to strict conditions.

Conclusion:

Despite receiving funding from financial institutions, Indonesia’s transition towards achieving Net Zero Carbon Emissions by 2060 poses significant challenges, particularly in regions that produce fossil fuels like East Kalimantan Province, Indonesia’s leading producer of fossil energy.

To ensure a smooth transition towards this goal while maintaining national energy security, we must take decisive and effective measures, including (a) continuing exploring and exploiting oil and natural gas while reducing dependence on imports and optimizing exploration of these resources to maximize their potential; (b) Optimize using NRE (New and Renewable Energy) to create a proportional primary energy mix, reducing reliance on fossil fuels; (c) conserving land, materials, and energy in all activities contributes to preserving our planet and its resources; (d) preserving and cultivating the remaining tropical forests is vital in controlling carbon emissions and protecting biodiversity; (e) supporting research on climate change-related matters is essential to inform innovative and effective decision-making for a sustainable future.