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Solar Energy in Indonesia by 2025

The Director General of Energi Baru Terbarukan dan Konservasi Energi (EBTKE) of Energi dan Sumber Daya Mineral (ESDM), Dadan Kusdiana, said that the government will pursue a New Renewable Energy (Energi Baru Terbarukan [EBT]) target of 23% in the national energy mix by 2025, through three routes, namely electrification, utilization of non-fossil-based fuels or biofuels, and direct use of renewable energy. Amongst the other types of renewable energy like hydro and geothermal, solar electricity will contribute 14% or 6.4 GW of the 45 GW capacity of electricity generation. The policy combined with Indonesia's commitment to reduce emissions by 29%, by 2030, is a clear effort towards a more sustainable future.

According to Dadan Kusdiana, Indonesia is the only country that utilizes biofuel on a national and large scale, with biodiesel in Indonesia already reaching 30% in use. In terms of electricity produced from a renewable energy source, the power generation capacity in the next five years must increase by 2,000-3,000 megawatts (MW) per year to achieve the 23% EBT target in 2025.

In order to ensure that the target is met, the government is currently preparing a Rencana Usaha Penyediaan Tenaga Listrik (RUPTL), set for the next 10 years. The discussion has been going on for three months together with the Minister of ESDM, the Directorate General of Electricity, and PT PLN (Persero). The RUPTL provides projections relating to electricity demand growth, energy mix, infrastructure, and available investment sectors for Independent Power Producers (IPPs).

Despite Indonesia only reaching 11.5% of EBT in 2020, with stable funding, this business plan will play a key role in making the 2025 target a realization.

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